1/25/2014

Deep Value Nano Cap: Negative Enterprise Value, Share Count Reduction coupled with Negative 52 week Stock Price Returns


PCCLF:PhosCan Chemical Corp is a Toronto Stock Exchange-listed company which is engaged in the development of the Martison Phosphate Project. The Company’s wholly-owned Martison Phosphate Deposit is located 70 kilometres north of Hearst, Ontario and has ready access to excellent infrastructure including rail, power and labor.” Long PCCLF

Why investigate PCCLF: consistent  share count reduction dating back to 2008, value created by shares purchased below net cash, strong positive insider buying, selling for 30% of book value, 1.86% of shares held by value institution Royce.
Stock price of .26 versus per share values .86 for book value and cash .37, PCCLF price =.26


SNWRF:Sunward Resources is an exploration stage company, evolved in the acquisition and exploration of mineral properties in Colombia. It owns 100% interest inTitiribi gold-copper porphyry project that covers 3,919 hectares. The company is headquartered in Vancouver, Canada.

Why investigate: Baupost Group (Seth Klarman) owns 10.74% of the company. Trading at 50% of book value, share count reduction over the prior 52 weeks, negative enterprise value, negative  52 week change -80%, SNWRF price = .16


PRLS Peerless Systems Corporation revenues are derived from OEM customers through the licensing of technology related to imaging solutions.


Why investigate: Net cash per share of 3.94 versus stock price of 3.62. Aggressive 19% reduction in outstanding share count, October 31, 2013 2,638,000 shares outstanding reduced 19% from 3,259,000 October 2012. PRLS price = 3.62



PBEGF: Petrobank Energy & Resource is a Canadian oil exploration and production entity. “The Company operates Kerrobert heavy oil project using its patented THAI® heavy oil recovery process in the field. “

Why investigate: current price .32 versus net cash of .46 per share.  PBEGF price = .33


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2 comments:

SteveCX_CycleHaus said...

I think I was reading this post as it was taking shape. Did you have a change of mind about the MD bank TYCP? I've been pestering Marylanders I know about their impresstions

ShadowStock said...

Hi Steve

TYCB, I did remove from my original post. Its a nice value stock great dividend yield, own all their branch locations (real estate), nice discount to book value. It was cut primarily due to time to finish the post and it was a banking stock. Its a nice illiquid stock. John