8/13/2017

Deep Value Micro Caps with Strong Historical and Recent Insider Buying



Below are 6 ideas found using insider buying activity for the week ending 08/11/17.

Update after post, Monday (08/14/17) Director of CTHR purchased 25,681 shares for $22,837 at $.89 per share. Monday (08/14/17) CEO of PRSS purchased 19,901 shares for $36,219 at $1.82 per share


Nano Cap = TURN, PRSS,CTHR:  Micro Cap = FRSH,FRGI: Small Cap = REV

click for quotes on all 6 stocks

180 Degree Capital (TURN): is a publicly traded registered closed-end fund. It focuses on undervalued small, publicly traded companies with significant turnaround potential. Further, 180 Degree provides value-added through constructive activism pushing a positive price reversal.

Implementation of their new strategy continues with overhead expense reductions, conversion of private holdings to public companies, and investments in public deep value micro cap public companies. The NAV = $2.43 versus the current stock price of $1.51. NAV increased two consecutive quarters. This realized sequential improvement is the first time in over five years.

CEO’s recent comment. “This is a marathon, not a sprint. While we are pleased with our start, our work is just beginning. As I have said before, my primary goal as CEO of 180 is to substantially increase our share price. We aren’t there yet, but we are on our way.”


CEO Kevin Rendino purchased 19,170 shares for $31,858 or an average price of $1.66 from 08/03/17 to 08/09/17. YTD 2017 139,932 shares purchased for $209,292 or average per share price of $1.49.  During 2016 233,735 shares purchased for $363,871 or an average price of $1.56.


My latest post on 180 Degree Capital (TURN) was on 04/02/17 provides additional thoughts. “Unique Opportunity Knocks with 180 Degree Capital (TURN)











CafePress (PRSS) is an online retailer selling a variety of customized and personalized products.
Year to date PRSS is down -38%. The Market Cap is 30.05M, Enterprise Value = .60M, Cash per share = 1.86, P/S =  .30, PB = .79 with no debt. Current price is $1.83.The price and enterprise value at historical low along with EV/Revenue, Price/TB,decling shares outstanding since 2013 and total liablities.


Cash Rich, Market Ignored Restructuring Opportunity, CafePress (PRSS) is my latest (04/17/17) blog post on PRSS.

YTD 2017 the CEO purchased 132,915 shares for $274,063 at an average price of $2.06. Famed micro-cap value investor Lloyd Miller 209,397 shares for $542,444 at an average price of $2.59.

During 2016 CEO purchased 82,885 shares for $251,349 or $3.03 per share. Lloyd Miller acquired 252,423 shares for $767,746 or 3.03 per share. 

Throughout 2105 Lloyd acquired 193,195 shares for $765,252 or $3.96 per share along with additional buying from the CEO and CMO.


















































Charles Colvard (CTHR): manfacture, markets and distributes moissanite jewels, finished jewelry for sale in the international jewelry market.
Price near 5 year low, P/B near 8 year low, shares outstanding stable over ten years.

Overlooked and Ignored Deep Value Nano Cap; Charles and Colvard (CTHR) is my latest (02/01/17) blog post on CTHR.
































Papa Murphy's Holdings (FRSH)
Renowned value investors Michael Price purchased 492,398 shares for $2,031,652 at an average price of $4.13 during 2017. Price is near 5 year low, EV/Revenue near all time low.





























Fiesta Restaurant (FRGI)

Fiesta Restaurant owns, operates, and franchises fast-casual restaurants. It operates its fast-casual restaurants under the Pollo Tropical and Taco Cabana names.

Price, enterprise value,EV/Revenue and P/TB near or at 5 year low.












































Revlon (REV):

Revlon is a cosmetics company.It manufactures and sells cosmetics, hair color, beauty tools, fragrances, skincare, deodorants and personal care products.

Revlon is not a micro cap but the unusual and aggressive insider buying by major shareholder Ron Perlman deserves a closer look.
Ron Perlman is Revlon’s majority shareholder and continues to buy large blocks of shares as the stock declines in price and financial strength. Perlman has been adding to his stake for several years but more pronounced during 2017.  Perlman purchased 3,259,515 shares for $65,622,416 at an average price per share of $20.13 during 2017. Revlon continues issuing debt, coupled with a negative Sloan ratio that indicates aggressive accrual accounting with poor interest coverage. Current market price is $18.30 versus a 52-week price range of $15.60 – $37.96. Aggressive buying by Perlman ($65,622,416 during 2017) may be a signal the company goes private, sold or deep undervaluation. The growing debt per share is less worrisome with Perlman’s estimated wealth of $12.2 billion. Perlman can easily step in and with that knowledge understands the stock is worth more than the current price. Interested investors need to wait as shares short continues to rise as operation fixes take time.

Ron Perelman owns around 80% of the stock leaving 20% in the public float. Additionally, concentrated value investor Chris Mittleman added 22,111 shares for the quarter ending 06/30/17 to increase his position to 2,304,282 shares or 4.38% of TSO.
























1 comment:

Anonymous said...

I bought REV stock and 6 1/4 '24 bonds - making $ on both