Regular readers of my blog will know that I like to focus on tiny unloved companies which have either been left for dead, are being ignored or are generally despised by those few investors that can bear to look at them.
The more obscure or hated the stock is, the more interested I am , but I'm always looking at it from a deep value perspective. I want to buy assets at a discount to their tangible worth.
Maestrano Group PLC (MNO:LON) fits the bill
In this post I'm going to return to a stock I've written about in the past. My first post on Pinelawn Cemetery (PLWN) was written back in August of last year and it can be found here. At that time I didn't have any financial statements so I was just making an assessment based upon what little information I had managed to cobble together. Recently a gentleman with many years experience as an investment professional reached out and provided me with a copy of PLWN's financials for the 2017 Financial year (Thanks Ron!).
Horizon Group Properties (HGPI) - An OTC retail asset play trading at a steep discount to tangible book value
Today's guest post comes from Svenda's Manual of OTC stocks and focuses on the undervalued OTC retail asset play Horizon Group Properties (HGPI)
Over to Jan with the analysis.
Northfield Precision Instruments Corp (NFPC) - A Dark OTC Nanocap trading at a P/E of 6.5 and a P/S of 0.52
I recently contacted Northfield Precision Instruments Corp (NFPC) to see if I could get hold of the company's current financials. They kindly offered to mail them out to me, no questions asked, and I received them a few days later. I wish all dark companies were as amenable to requests!
Here's the back story on the firm.
Hello fellow investors,
Those of you that regularly follow my blog will know that I primarily focus on the Over the Counter (OTC) Markets in order to hunt for value where the least amount of competition exists.
The problem with the OTC markets is that there is no easy or quick way to screen for investment opportunities. One must manually work through the thousands of companies to uncover value. Thankfully a solution now exists which removes a lot of the hard work.
This stock is another oddity from the Walker's Manual of unlisted stocks. Allengheny & Western Railway Company (AWRY) was founded in 1898 and has no business operations to speak of. The company simply owns a 62 mile piece of railroad line between Punxsutawney and Butler Junction in Pennsylvania which it leases out for a fixed fee.
Whilst net-nets have all but dried up on the major U.S. markets they can still be found in the land of forgotten stocks, namely the OTC markets. This is the first in a number of net-nets I've recently uncovered which I'll be writing up as time permits.
Impreso Inc (ZCOM) is a pink-sheet which is classed by the OTC markets website as Dark or Defunct, my kind of stock!
Mortgage Oil Corp (MGAG) - An illiquid pink-sheet with a 12.8% div yield trading at 1/3rd of estimated fair value.
Today's stock is another pink sheet from the Walker's Manual of Unlisted Stocks (2002-2003 6th Edition).
First things first, Mortgage Oil Corp (MGAG) isn't an oil company, it's a real estate investment company with some cash and investments on its balance sheet.
Walker's informs us that the firm was spun off in the liquidations of Mortgage Guarantee Company and Mortgage Service Co. in 1946 and 1949 respectively. The mineral, oil and gas rights that the firm once possessed were distributed out to shareholders as dividends in 2005. Since 1991 the company has been primarily engaged in investing in Real Estate Limited Partnerships and LLC's.
How exciting I hear you say!, bear with me as it gets interesting.
I recently acquired some old Walker's Manuals of Stocks including the 6th edition 2002-2003 Walker's Manual of Unlisted Stocks (These books tend to trade at prices no self respecting value investor would pay but occasionally you can find them selling at reasonable prices. I recommend periodically scouring Amazon, Alibris and Abebooks to see if any cheap copies come up for sale).
Whilst leafing through the 6th edition Manual of Unlisted Stocks I came across a number of interesting royalty trusts including Trinity Petroleum Trust (TTYP)
I stumbled upon Ethernity Networks Ltd (LON:ENET) whilst looking through companies with negative enterprise value. Amongst the usual garbage of Chinese RTO's and moribund financial firms I came across ENET. As it was listed as a technology firm I figured I'd check it out since they can often have plenty of cash sat on the balance sheet.
David J. Flood
UK based Value Investolator. I focus on Net-nets, Nano caps, OTC/Dark stocks & Special Situations. Balance sheets & Long-range price charts are my guide.
BLOGS I FOLLOW
No Name Stocks
Svenda's Manual of OTC Stocks
Nothing But Net Nets
Clark Street Value
Value Investing Blog
Deep Value Investments
Value Stock Geek
Barel Karsan - Value Investing
Yet Another Value Blog
Streets Of Value
TES Optimal Value Investing
The Bad Investor
Adventures in Capitalism
White Chip Stocks
Light Blue Value
Global Investing Insight
Mesaba Range Value
The Market Plunger
The Investment Long-List