Monday, May 16

Micro Cap Value Trading Near 52 Week Low: "Be Greedy when others are fearful"



Click for quotes on all the stock below.


Company size range from the smallest with a negative enterprise value. Average for the entire group is a 119M market value.


Price and some fundamentals on 05/16/2016:




























Sizmek Inc. (SZMK)provides online ad campaign management and distribution platforms. It helps advertisers engage consumers across multiple online media channels. The company is financially distressed with a horrible sloan ratio indicating aggressive accruals/poor earnings quality, weak Z score. But the historical and relative valuation is more extreme creating a potential opportunity at these prices.

Positives; share buy backs and reduction of shares outstanding. Price and P/S are near 3 year low. EV/Revenue for the TTM is .16, enterprise value is 31M versus TTM GP of 105.70M EV down from 142M for June 2015.consistent YOY revenue growth from 2015.The improved valuation has attracted shares purchases for the recent quarter 03/31/16 from Royce.Royce added 118,200 shares during the quarter ending 03/31/2016 at an average price of $3.21. Total shares owned 535,950 for an average price of $7.68

Price on introduction date = $2.44
Market Cap:  71.05M , Enterprise Value:     30.76M
Price/Book (mrq):     0.60
Enterprise Value/Revenue (ttm):        0.16, EV/EBITDA = 4.82

Revenue (ttm):  176.50M , Revenue Per Share (ttm):     6.00
Qtrly Revenue Growth (yoy):     10.20%
Gross Profit (ttm):   105.70M : EBITDA (ttm):  6.38M
Total Cash (mrq):     40.29M  Total Cash Per Share (mrq):     1.38
Total Debt (mrq):       0.00
Current Ratio (mrq):    2.50 , Book Value Per Share (mrq):     4.05
52-Week Change:        -65.19%
52-Week High (Jul 31, 2015):   7.91 , 52-Week Low (May 16, 2016):    2.38
Shares Outstanding:    29.12M , Float:  18.99M
% Held by Insiders:    34.14%
Short % of Float (as of Apr 29, 2016): 3.79%



IZEA, Inc. (IZEA)"operates online marketplaces that facilitate transactions between brands and influential content creators. Its platform IZEAx and Ebyline are designed to streamline transactions between brands and creators" Morningstar


Micro Cap value institution Royce initiated a position of 100,000 shares between the prices of 8.34 to 6.38 for an average price of $7.58.































Echelon Corporation (ELON)"develops open-standard control networking platforms, delivering all the elements necessary to design, install, monitor, and control industrial-strength communities of devices." Source Morningstar


negative enterprise value.

LTD reduction, current  balance of .97M from 17.74M for 2013. Price to book and price to revenue near its 10 year low. Further, price is near 10 year low with operating margin expansion. Royce added 304,696 shares during the quarter ending 03/31/2016 at an average price of $5.62. Total shares owned 330,852 for an average price of $7.31











CafePress Inc. (PRSS)"provides e-commerce platform which enables customers to create, buy and sell a wide variety of customized and personalized products". Source Morningstar












Sharps Compliance Corp. (SMED) provides waste management services with a focus on medical disposal specifically small volume clients. It serve customers in markets such as home health care, retail clinics and pharmaceutical manufacturers.

Heartland initiating a positing for the Quarter ending 03/31/16. Price and price to sales at two year low. Revenue per share increase 23% from 2014 revenue per share of 1.73 the current TTM 2.12.

Price on introduction date = $4.16
Market Cap (intraday): 65.64M , Enterprise Value (May 18, 2016): 50.80M
Price/Book (mrq): 2.74, Enterprise Value/Revenue (ttm): 1.52
Enterprise Value/EBITDA (ttm): 23.71
Revenue (ttm): 33.50M , Revenue Per Share (ttm): 2.17
Qtrly Revenue Growth (yoy): 7.80%Total Cash (mrq): 13.45M ,Total Cash Per Share (mrq): 0.87
Total Debt (mrq): 0.00 , Current Ratio (mrq): 4.55
Book Value Per Share (mrq): 1.52
52-Week Change: -24.78%52-Week High :10.49 , 52-Week Low : 4.09
Shares Outstanding: 15.44M , Float: 11.34M
% Held by Insiders: 24.51% , Short % of: 0.57%




TRC Companies Inc. (TRR) a national engineering, consulting and construction management firm that provides integrated services to the environmental, energy, and infrastructure markets in the United States


Revenue per share increased 16% from 2014 revenue per share of 12.37 the current TTM 14.46.





















CareDx, Inc (CDNA)develops and markets a diagnostic surveillance solution for heart transplant recipients to help clinicians make personalized treatment decisions.


Tangible book value per share increased by 37% from 2014 1.94 to 2.66 per share.












BioSpecifics Technologies Corp. (BSTC)engaged in the development of an injectable collagenase for multiple indications.

NCAV per share is 5.56 up from the NCAV 2013 per share balance of 3.62. EV/Revenue is 8.22 down from 16.99 for 2014. Revenue per share increase 63% from 2014 revenue per share of 1.27 the current TTM 3.26. Tangible book value per share increased by 52% from 2014 4.45 to 6.74 per share.





































EMCORE Corporation (EMKR)a provider of compound semiconductor components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets.


LTD reduction, current  balance of 3.08M down from 18.88M for 2013.
Tangible book value per share increased by 50% from 2014 7.22 to 10.88 per share.

Polar Asset added 77,000 shares during the quarter ending 03/31/2016,shares held 1,011,065.Royce added 147,724 shares during the quarter ending 03/31/2016,shares held 775,198.Paradigm Capital 593,100 shares during the quarter ending 03/31/2016,shares held 611,963.


























GSI Technology Inc. (GSIT) develops and markets memory products, static random access memory, or SRAM, and low latency dynamic random access memory, or LDRAM.


Tangible book value per share increased by 15% from 2014 3.58 to 4.15 per share.































LMI Aerospace Inc. (LMIA)"is a supplier of structural assemblies, kits and components, and design engineering services to the aerospace and defense markets. The Company's business segments are Aerostructures and Engineering Services". Source Morningstar

LTD reduction, current  balance of 252.70M from 292.2M for 2013.




































Village Super Market Inc. (VLGEA)


Village Super Market Inc operates a chain of 29 ShopRite supermarkets in New Jersey, eastern Pennsylvania and Maryland.

Tangible book value per share increased by 11% from 2014 31.48 to 34.88 per share.

































Sunday, May 1

Private Value Greater Than Current Market Price Attracts Activist


Perceptron, Inc. (PRCP), develop and sells automated industrial measuring products and solutions in the Americas, Europe, and Asia. It offers 3D machine vision solutions, robot guidance, coordinate measuring machines, and laser scanning.

The manufacturing industry use Perceptron's products for dimensional gauging, inspection and 3D scanning.  Further, it offers value added services consisting of training, field services, calibration, launch support services, consulting services, equipment,software maintenance agreements and repairs. Their largest end use market is the automotive industry. Perceptron has 346 employees, founded in 1981 and headquartered in Michigan.

Perceptron continues to struggle, I believe more than accounted for in its negative stock returns potentially creating an investable opportunity.

In 2013, Perception set a new strategic direction. One is to sustain its auto sector leadership. Additionally , new small acquisitions include the Coord3 and the Next Metrology providing important revenue diversification. More importantly than revenue diversification is an immediate focus on profitability and cash flow.

During the Q2 2016 conference call CEO stated revenue and profitability for the prior six months were short of expectations, but "that said elements supporting Perceptron's long-term potential can be seen in the results. Bookings were a record for second quarter. Backlog is about $40 million for only the fourth time in our history.On an optimistic note bookings were a record for second quarter. Backlog is about $40 million for only the fourth time in our history." Negative foreign exchange translation has been a head wind. dragging down results.

"The board remains confident that Perceptron will be able to achieve double-digit revenue growth over the longer term while also improving profitability and cash flow."CEO


The low market price, horrific stock returns continue to attract value investors.MOAB CAPITAL PARTNERS has taken a activist 13D position adding more share, 213,028 shares from their 13D filed 3/15/16 to 4/19/16.

See table below for other value institutions, Royce, Ariel, Kennedy Capital, and others.


Price per share on 04/29/16 = $4.61
Market Cap: 43.10M , Enterprise Value:    34.62M
Price/Sales (ttm): 0.61 , Price/Book (mrq):  0.78
Revenue (ttm):  71.90M ,Qtrly Revenue Growth (yoy):  -27.00%
Gross Profit (ttm):  28.27M versus Enterprise value of 34.62M
Total Cash (mrq):  8.68M,  Total Cash Per Share (mrq): 0.93
Current Ratio (mrq):  2.01 , Book Value Per Share (mrq):   6.05
52-Week Change:  -62.12%
52-Week High:    12.70 , 52-Week Low:    4.54
% Held by Insiders:    4.51% , % Held by Institutions:    68.90%
















































Note the valuation improvements for P/B, EV/Revenue, 63% drop in market cap from 2014,



































Long PRCP

Thursday, April 28

Value Ignored

After additional research as with all stocks accumulate patiently and wait.

CWGL LOV
 
 
 
Crimson Wine Group, Ltd. (CWGL) "together with its subsidiaries produces & markets wines. It has vineyards in the Napa Valley, Edna Valley in California, Sonoma County, the Willamette Valley in Oregon & Horse Heaven Hills in Washington." Morningstar

Crimson is a stock if after additional research accumulate patiently and wait.


Relatively small insider buying for the week ending 04/22/15.Strong value institutional ownership from Michael Price, Tenton Mighty Mites, Gamco, Perritt.Price reported adding shares at higher market price for the quarter ending 12/31/15

Positives: Diverse group of successful micro cap value institutions purchasing shares greater than current market price. Positive insider buying during 2016 and 2015.High Piotroski F Score of 7.
Revenue per share growth, 5 year annual per share revenue growth rate 18.80%, one year 4.90%.
Per share value improvements for metrics in table below, EBIT, BV, EBITDA.




.

 
 
 
 
 
 

 
Gross margins out performing its relative and historical returns, 2010 = 38.48%, 2012 = 49.39%,TTM = 53.25%.
Stable share count 2011 24.46M shares outstanding TTM = 24.23M

Financially sound based on Z score, Sloan and Bennish ratio.
Insider ownership is 31.20%















 







































































 
Market Cap: 208.38M ,Enterprise Value:     182.02M
Price/Sales (ttm):      3.45 , Price/Book (mrq):       1.01
Enterprise Value/Revenue (ttm):        3.02 , Enterprise Value/EBITDA (ttm): 11.87
Profit Margin (ttm):    6.91% , Operating Margin (ttm): 13.22%
Revenue (ttm):  60.23M
Gross Profit (ttm):     32.53M , EBITDA (ttm):  15.34M
Total Cash (mrq):       27.64M , Total Cash Per Share (mrq):     1.13
Total Debt (mrq):       0.00
Current Ratio (mrq):    6.60 , Book Value Per Share (mrq):     8.43
Operating Cash Flow (ttm):      7.74M
52-Week Change3:        -7.03%
52-Week High (May 8, 2015)3:    9.80 , 52-Week Low (Feb 17, 2016)3:    7.58
Shares Outstanding:    24.23M , Float:  19.69M
% Held by Insiders:    31.12% , % Held by Institutions1:        20.20%

 





Spark Networks, Inc. (LOV)   owns and operates online dating platforms JDate.com, Christianmingles.com,BlackSingles.com, Silversingles.com.
Market Price $2.29 on 04/28/16

Market Cap: 59.19M , Enterprise Value:  44.90M
Price/Sales (ttm):   1.15 , Price/Book (mrq):  3.22Enterprise Value/Revenue:   0.87 ,Enterprise Value/EBITDA: 5.00Profit Margin (ttm):    7.11% ,Operating Margin (ttm): 13.24%
Return on Assets (ttm): 13.79% ,Return on Equity (ttm): 25.27%
Revenue (ttm):  51.69M , Revenue Per Share (ttm):   2.08
Qtrly Revenue Growth (yoy):  -22.20%
Gross Profit (ttm):     24.06M , EBITDA (ttm):  8.99M
Total Cash (mrq):       14.44M , Total Cash Per Share (mrq):     0.56
Total Debt (mrq):       0.00
Current Ratio (mrq):    1.29 , Book Value Per Share (mrq):     0.72
Operating Cash Flow (ttm):     5.83M , Levered Free Cash Flow (ttm):   4.30M
52-Week Change:   -42.17%
52-Week High (May 1, 2015):    5.10 ,
52-Week Low (Apr 18, 2016):    2.09
Shares Outstanding:    25.85M , Float:  11.54M
% Held by Insiders:    23.57%
, % Held by Institutions:   47.90%
Short % of Float :2.76%