10/07/2015

Deep Value; Two “Net – Net”


Karnalyte Resources is finally paying off closing today at $1.25.

Karnalyte Resources Inc. (KRN.TO)/(KRLTF) mentioned in this post. "Stock Trades at 19% of BV and 46% Net Cash"

The stock dropped lower for months after the post.  Reaching .52 on September 29,2015 and trading below .60 for the entire week,  the stock moved higher. Outside investor interest in the company moved to .96 last week.

Karnalyte Resources Inc. Provides Clarification to Braich Press Release Issued on September 30, 2015

Today KRN.TO closed at $1.25 up 26% for the day.

A similar situation is Phoscan Chemical Corp. FOS.TO (PCCLF). Management aggressively buying back and reducing shares count below net cash, hence creating shareholder value .Current working capital is 53,800,000 or .36 per share or .35 cash per share versus the current price of $.29


Phoscan Chemical mentioned January in the following post. "Deep Value Nano Cap: Negative Enterprise Value, Share Count Reduction coupled with Negative 52 week Stock Price Returns"

Note: SNWRF:Sunward Resources was taken over. Peerless Systems Corp. (PRLS) doubled in price. 

Long FOS.TO


"Mean Reversion Candidates identified by an Improving Capital Structure, Significant Price Decline and…."

additional stocks to be added to the existing two stocks ,  Blount International Inc (BLT)  and Iconix Brand Group, Inc. (ICON) are

Jewett-Cameron Trading Company Ltd. (JCTCF)
ITEX Corp. (ITEX)
Computer Task Group Inc. (CTG)
Natural Alternatives International Inc. (NAII)

No comments: