Nano cap idea: SPRO (SmartPros Ltd) : They provide educational solutions for accounting/finance ,
legal, engineering, securities, insurance and information technology.
Why this idea is interesting? SPRO
at $1.25 per share appears oversold based on current valuation and price performance.
52 week return is -31%
Enterprise value is 197,000 or 197k. For the 197k we get 16.03M in TTM
revenue, 9.94M in TTM gross profits, 1.728M in current AR.
Market Capitalization is 5.89 million or 1.25 per share. The 1.25 price
gives you 1.23 per share in cash, 3.90% dividend yield, 2.31 book value and a
3.396 per share of revenue and 2.105 per share for gross profit. Positive 2012
insider buying, 11.600 shares were purchased in 2012 for an average price of
1.95 for a total of $22,640.
Those are some of the positive metrics but the company continues to be
run with little regard for the public shareholders.Insiders own 24% but the SGA
has been close to or greater than the gross profit. Q4 2011 was the last reported positive operating income. Gross margins have been declining since the end of
2007. Expenses have not been reduced enough to account for this shift as management
waits for improved revenues and product mix to increase the GP for the
business.
But having said that the stock price may present an opportunity as
insiders own 24% and the exercise price of options are greater than the current
market price. A stock price increase of .75 increases to the stock to $2 per share would represent a 60%
return from the current price. But I do want to note that management is making
most of their income from salaries not the price of the stock.
Capstone Therapeutics Corp. (CAPS) is a simple story. The stock is
currently trading at net cash. Current price is .17 or a 7 million market
capitalization. Capstone is a biotechnology company with 11,355 in cash or .16
per share and a book value per share of .30.
Nano Cap Idea: Capstone
Therapeutics and LipimetiX, LLC, a privately-held biopharmaceutical company have
entered into a joint venture to develop a class of drugs targeted for
indications related to lowering blood cholesterol levels.
Value investor
Lloyd Miller has been recently adding shares. BVF INC.owns 18% of the shares
outstanding.
