6/24/2010

Mr Market serving up nano cap value ideas??

A few comments that support looking further


MAG (Magnetek) Price = $1.00; market cap = 31 million

Mean reversion, value institutions with recent buys ie Heartland, recent insider buying, new alternative energy orders

LUB (Lubys) Price = $3.95 market cap = 109 million

Real estate greater than market value, new acquisition acquired in bankruptcy, mean reversion, low interest financing for new deal, margin of safety

TIXC (Tix Corporation) Price = $1.16; market cap = 36 million

Improved operating results, solid cash flow and strong balance sheet, material share buybacks, mean reversion

NOOF (New Frontier Media) Price = $1.57 ; market cap = 30 million

Large share buybacks, reduced share count, mean reversion, outstanding and consistent FCF, improving results based on cash flow, strong balance sheet

2 comments:

eclecticvalue said...

Luby's is interesting but do you think the possible double dip in real estate can cause this to go even lower? Right now I am thinking the market isn't going to realize value because of the slowdown in operations. If that picks up then we might see a good rise in price. Do not get me wrong I am one step closer to buying some shares.

ShadowStock said...

Hi Eclectivalue

A double dip in the economy, real estate or the inability to turn around Lubys and the 61 million acquisitions of Fuddruckers will slam the stock. But having said this I believe the risk reward over the next few years is positive. Its seems the market has not correctly valued the potential of Fuddruckers or the turnaround of Lubys operation.

John