Reporting postive results this past week; No real positive price change for these ShadowStocks??

SYTE.OB $.055 : 11/14/08 Opening Price


“The Company continued to deliver on its growth strategy, eclipsing Fiscal Year 2007 net income for the nine months ended September 30, 2008 and acquiring Velocity West, a Texas-based Internet Service Provider (ISP) and wholesale managed modem solution provider. Financial highlights for the quarter include:”

-- Total Revenue for the three (3) months ended September 30, 2008 was $2,485,294, an increase of $1,003,408 or 67.7% from $1,481,886 for the same period in 2007. -- Net Income for the three (3) months ended September 30, 2008 was $392,060, an increase of $207,316 or 112.2% from $184,744 for the same period in 2007.

-- Total Revenue for the nine (9) months ended September 30, 2008 was $7,644,538, an increase of $3,193,938 or 71.8% from $4,450,600 for the same period in 2007.

-- EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the nine (9) months ended September 30, 2008 was $3,461,515, an increase of $1,748,708 or 102.1% from $1,712,807 for the same period in 2007.

-- Net Income for the nine (9) months ended September 30, 2008 was $1,092,939, an increase of $510,107 or 87.5% from $582,832 for the same period in 2007.

Regarding the Company's future outlook, Mr. Erhartic commented, "Strong companies make bold strides during economic downturns. We believe that good, but monetarily weakened, ISPs will be increasingly more receptive to being acquired by Sitestar in this market. Similarly, we think that our high profit margin dial-up customers may be less likely to switch to more expensive but lower margin broadband service offerings in an economy where households seek to curtail discretionary monthly expenses. Being in a healthy financial position amidst weakened market conditions, we are confident about the future of Sitestar."

based on earnings SYTE.OB is CHEAP but the balance sheet in the past raised concern although improved results has taken most of this concern off the table at this point

RLOG $4.24 : 11/14/08 Opening Price


Rand Logistics Reports Record EBITDA of $13.2 Million for the Second Quarter of Fiscal 2009, up 347 PercentThursday November 13, 7:32 am ET

RLOG Posted Record EPS of $0.38 for the Quarter, $0.58 YTD
NEW YORK--(BUSINESS WIRE)--Rand Logistics Inc. (Nasdaq: RLOG - News) (“Rand”) today announced financial and operational results for the second quarter of fiscal 2009 ended September 30, 2008.

Second Quarter Fiscal 2009 Business Highlights

Marine freight revenue (excluding fuel surcharges, outside charter and other surcharges) increased by 45.9% to $32.3 million, from $22.2 million in the prior year quarter
Vessel margins1 increased by 176.9%, to $16.1 million, from $5.8 million in the prior year quarter due to increased operating leverage
EBITDA1 increased by 347.2% to $13.2 million from $3.0 million in the second quarter of fiscal 2009

Fiscal 2009 EBITDA projected to meet or exceed the high end of management’s EBITDA guidance provided last quarter of $18.0 million to $19.5 million
Year To Date Fiscal 2009 Financial Results
For the six months ended September 30, 2008, marine freight revenue (excluding fuel surcharges, outside charter and other surcharges) increased 42.8% to $59.6 million, compared to $41.8 million for the same period last year. EBITDA was $21.5 million for the six months ended September 30, 2008, compared to $5.9 million in the same period last year. The $15.6 million increase in EBITDA was due to ongoing operational improvements, the successful integration of strategic acquisitions, vessel upgrades and infrastructure investments.

Management Comments

Scott Bravener, President and CEO of Lower Lakes, stated, “Our second quarter results illustrate the underlying strength of our business. We achieved record EBITDA this quarter of $13.2 million, versus $3.0 million in the prior year quarter, fueled by increased freight rates, better vessel utilization and continued operating improvements. Demand for our services in our second quarter was strong in the Great Lakes region where we operate, and we employed all twelve vessels this quarter. For the quarter ended September 30, 2008, vessel margin per day (before SG&A) equaled $14,069 versus $6,772 for the same quarter last year, an increase of 107.8%. We believe these strong operating trends will continue, as we further improve the performance of our fleet.”


Laurence S. Levy, Chairman and CEO of Rand, added, “Our results this quarter are indicative of the normalized earnings capability of our assets, as we continue to realize their full potential. We believe that our business remains well protected as a result of the diversity of the end markets and customers that we serve, our low cost operating position and long-term contractual nature of our revenues. Although end market demand has softened somewhat, we are 100% contractually committed for the balance of this sailing season and based on our existing contracts and our knowledge of customer demand, we expect that our vessels will be fully utilized for the 2009 sailing season. Year-to-date, we have generated EBITDA of $21.5 million, exceeding our internal expectations, and we believe that we will meet or exceed the high end of our previously stated EBITDA guidance of $18.0 million to $19.5 million. The fundamentals of our business remain solid, and we continue to extract operating efficiencies from our fleet.”


It my opinion RLOG still has dilution to work off. The business is profitable with a strong moat.

DCU $.83 : 11/14/08 Opening Price

Friday November 14, 10:33 am ET

For the first three months of fiscal 2009, revenues increased 42.5% to $6,750,817 from $4,736,644 for the same period of last year. Net earnings increased 84.9% to $209,001 or $.03 per diluted share from $113,044 or $.02 per diluted share in the first quarter of fiscal 2008.


This tiny stock is still attractive at these prices

My original introduction

STMF.PK $0.77 : 11/14/08 Opening Price

Company website

Recent Conference Call

*3rd quarter revenues were up 47.20% from 2007

*Full year revenue guidance increased to $135 - $145 million

*Full year EPS before non-cash items guidance increased to $0.29 - $0.32

“The increase in revenue is primarily due to increased demand for our products from existing customers resulting in higher sales volume, increased spending in commercial and industrial construction and infrastructure building end markets, price increases to customers and an increase in average scrap selling prices.

Net income for the third quarter ended September 30, 2008 was $4.4 million or $0.09 per diluted share versus $0.6 million or $0.01 per diluted share in the third quarter last year. Diluted earnings per share before non-cash benefits and expenses for the third quarter ended September 30, 2008 was $0.12 per share.

Cash provided by operating activities was $3.7 million for the third quarter ended September 30, 2008 compared to a cash usage of $0.1 million in the same quarter of the previous year.
Total debt was reduced $3.5 million in the quarter to $26.3 million compared to $29.8 million as of the prior quarter.


At .75 coupled with a talented management team backed by Warren Kanders large stake; STMF.PK should warrant further investigation.

Great management with a promise to list on a major exchange

ELST.OB $.31 : 11/14/08 Opening Price

ELST.OB reported 3rd quarter results.

Net Income for the third quarter of 2008 was $25,449, or $0.01 per share, compared with net income of $42,838, or $0.01 per share, for the third quarter of 2007


For .31 you purchae Cash + AR – Total Liab = .44 per share, and sales per share of .56.

EV = Price per share (.31) – Cash (.40) + Total Liab(.049) = -.0439


I own a position in all of the above stocks as part of a highly diversified portfolio


Jeff said...

did you read about the "material impairment" danger for ELST? it was at the end of the last filing.

ShadowStock said...

Hi Jeff

Just noticed your response.I did not see any indication of a material impairment. If they had an impairment it would be recorded only when incurred. I dont see any issue with asset imparment that will have an impact.

I still have a position as part of my highly diversified portfolio.

Best of luck

Jeff said...

I mistakenly said material impairment, when I meant to say material weakness... I too still own shares in ELST.

The material weakness is as follows:

We did not maintain effective controls to ensure appropriate segregation of duties as the same employees were responsible for the initiating and recording of transactions, thereby creating segregation of duties weaknesses. Due to the (1) significance of segregation of duties to the preparation of reliable financial statements, (2) the significance of potential misstatement that could have resulted due to the deficient controls and (3) the absence of sufficient other mitigating controls, we determined that this control deficiency resulted in more than a remote likelihood that a material misstatement or lack of disclosure within the annual or interim financial statements will not be prevented or detected.

ShadowStock said...

Hi Jeff

Thanks for the info.

Yes I see …auditing 101 segregation of duties. ELST is a small company so it is more likely they would violate segregation of duties but this violation is a bit disturbing. What the hell were they thinking? I looked at their auditors and was not too comfortable given the size of their auditing firm Moe O'Shaughnessy & Associates P.S.. Having said that I’m still holding and believe any misstatement will hopefully not be material.

Paul D. Sonkin owns 16% of the company.

Jeff said...

yeah, it bothered me too... but I am holding on. Paul Sonkin is actually how I found out about them.

I feel pretty good about them (as I do with DRAM) since I really doubt that they can screw up the amount of cash on their balance sheet. Plus, they do seem to make ok products, and sell them pretty consistently.

One question-how in the heck can we get some of these nano-cap companies to buy back their shares (like BWTL did)... Especially with DRAM-they are trying to be a growth company, but are being stupid using options to buy companies; especially when their stock is trading at less than their cash minus ALL liabilities.

Do we just start drowning the board with letters? Should we try to get a list of shareholders and write them to petition the board? try to get a proxy going?

ShadowStock said...

HI Jeff

BWTL came out with dismal earnings tonight.

It seems the rules have changed years ago for nano caps with the huge cost of Sarbanes Oxley. I’ve lost faith as it seems most nano cap companies no longer have the desire or see the benefit of being a reputable public company.

Value should be realized by … a take over, return cash to the shareholders, share buy backs, but eventually if your analysis is correct you will eventually see a return to intrinsic value. But now many of these tiny companies voluntarily deregister their shares, perform a reverse split reducing the number of shareholders, spending their assets with no visibility and reporting requirements on the pink sheets.

I’m frustrated and have been buying some commodities and short the long term treasury. Some close end funds are trading at huge discounts and may present opportunities.

Bottom line many of these companies are run by CROOKS.

Good Luck