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


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.