05/27/10 must take a closer look ideas

It started with direct insider buys today 05/27/10. At that point I filtered the list further by only taking ideas

1:Selling with market capitalization below 100 million

2:Strong balance sheet as measured by Enterprise value /Market Capitalization <1.55 3:Share count being reduced or stable from 2004 compared to the TTM 4:Short as a percentage of float <1% 5:SGA/Total Revenue < 33% Additional investment points for the following 5 ideas selected

PRCP: Enterprise value of only 27 million, share buybacks that reduced the 2004 share count versus the TTM, 2350 shares reported purchased today for $ 4.25, historical generous ROIC that has been depressed due to industry conditions. This may be a strong candidate for ROIC mean reversion, P/S and P/B trading at historical low valuations, 75% below 5 year high

BDR: 3,325 shares reported purchased today at 1.25 along with additional small buys over the past week, Gross profit/ Enterprise value = 92.89%, stable or slight reduction in share count from 2004 to TTM, quarterly year over year revenue decline of 37%, 22% stock decline over the past year, 57% off the 5 year high, enterprise value of 13 million, building with 130000 square feet coupled with 20 acres of land in Old Bridge New Jersey, Old Bridge NJ is a high real estate value location located very close to NYC and adds some margin of safety to offset the weak balance sheet of this closely held nano cap.

HSKA continues to report small insider buys, ICCC and MTOX also made the list and deserves a closer look

Click to see the 5 ideas with supporting details that made the list tonight


Anonymous said...

Very good information
Do you publish also methodology when to sell these Micro Caps?

ShadowStock said...

Hi Ariel

I can’t advise anyone to buy or sell stocks .I do make a tremendous effort to introduce unique value ideas that are strong candidates to hopefully and significantly outperform the market on average as a group. The decision to buy or sell for your portfolio is yours. This blog should help save you time, effort and give you new techniques to find ideas that have been ignored or neglected in the micro cap deep value category.

Good Luck