Four Bargains
Four bargains in the North America
Hey all,
No matter how hard I fight it, I sometimes get distracted by cheap stocks while looking for overlooked growth stories. When I go through small OTC stocks, I make a list of interesting cases and I also do some work on them to be knowlegdable about what I am dealing with. These are rather trades to take before something better arrives. Today I am highlighting some cheap stuff I have been able to find recently.
Canadian company with investment properties higher than the market cap, but core business trades at 4.5x LTM P/E, while should grow a lot in the this year. It is buying back lots of stock and retired over 15% of shares in the last 3 years.
US company burried on the OTC land quitely executing each year. Trades at 6x EV/FCF and is exceptionally run. Net cash is 40% of the market cap and financials will become screenable this year as lots of moving parts will disappear from P&L. Led by great manager.
Recent filling burried deep on the OTC land showed a hidden sale of software part of the business. This will make the company to trade at 46% discount to NCAV on the balance sheet, while core business is sometimes profitable and sometimes at the breakeven. Market Cap $2.2 million. On the pro-forma & scaling R&D down, the company trades at 5x P/E. But it is family controlled.
US company trading at 2.5x EV/EBIT with one of their division growing very fast and they are buying back stock.
I prefer to put these stocks into baskets as there is lots to like but sometimes lots to dislike about them, hence “four stocks” and not a deep dive.