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.
Network-1 Technologies Inc (NTIP) is a micro cap IP licensing company trading on the AMX market of the NYSE. Here's the firm's vital statistics at the time of writing;
My journey through the shadowlands of dark stocks continues with Beaver Coal Co., Ltd (BVERS). This stock is as dark as they come with virtually no financial information available.
I happened upon this stock whilst looking through highly priced dark stocks with high dividend yields. I almost didn't bother digging any further given its a coal company, "these companies are in secular decline aren't they?" I thought. I decided to continue digging to confirm my suspicions that this was a dead end . Okay, it was the dividend yield that kept me digging!
I have been following the work of Dan at nonamestocks.com with great interest over recent months. He focuses his attention on looking at micro/nano caps, OTC, dark and grey stocks in order to fish where there is the least amount of competition and to try and maximize his ROI. This approach seems well reasoned to me and Buffett/Greenblatt/Munger have all suggested individual investors managing relatively small amounts of money should pursue this course in order to uncover the most compelling investment opportunities and minimize their competition.
With this inspiration in mind I have been trawling through the OTC markets on the hunt for potential investment opportunities. I came across PLWN by using the OTC markets screener to try and see if I could find anything of interest. This screener does not have all the ususal price and value metrics that most screeners have so you have to get creative with it. I hit upon the idea of omitting all the OTCQX and OTCQB stocks and all Pinksheets with current information to remove stocks which might show up else where (minimize the competition!). This left me with the Pink sheets with limited or no information and Grey market stocks. In number terms this works out at 9591 stocks to look through! I then decided to use the price function to rank these stocks by price per share to find the highest priced stocks, I figured the highest priced shares would be even more illiquid and even less likely to attract any interest.
Whilst scrolling through the list I was looking out for a few things, dividend yields, boring names (As Peter Lynch suggests) and volume traded. On page 6 Pinelawn Cemetery (PLWN) caught my eye.
Pendrell (PCOA) is in the business of licensing IP rights on the portfolio of patents it holds. In 2017 the company divested the majority of its patent portfolio but still holds digital rights management patents owned through their subsiduary ContentGuard and memory & storage patents owned through their subsiduary Memory Technologies, these latter patents were acquired from Nokia in March of 2013. Since 2014 the company has entered into license agreements with several leading memory device makers and the firm generates its income through the sale and licensing of its patents, and through litigation settlements from the enforcement of its patents. The firm's current IP Portfolio consists of patents which have either already expired or will do so between 2018-2035.
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. Caveat Emptor!
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
Battleship Investing Blog
The Investment Long-List