Wednesday, November 23

Basket of Deplorable Stocks

is my effort to uncover oversold opportunities. Each one of these ideas have several mean reverting attributes with my market outperform expectations. The search started with stocks below 2 billion in market size for US listed exchanges, NASDAQ, NYSE, AMEX, OTCBB, OTCPK. The result for this stock search was an average market size of 35M.

These ideas are not the best managed companies but contain attributes for potential market out performance. The approach included analyzing insider activity as it relates to current market price, shares in float and existing share ownership. Review of historical shorts as % of float, stock’s performance versus its industry and  market. Reputation of Institutional ownership and its changes to measure conviction.  Multiyear review of debt and share count changes. Relative and historical valuations to include changes in financial strength, P/TB, EV/Sales, EV/GP, F score,short ratio.

Think of this as a watch list to be considered on further weakness and research.

Click for quotes on all stocks below
 
The prices below were entered when this post was started on 11/18/16; some prices higher or lower when published

RFIL ($1.60)     INFU ($1.80)  ICCC ($5.06)   SGMA ($5.22) IMN ($.61)
ELON ($4.30)   AETI ($1.60)  EGY ($.71)      IZEA ($4.47)    JCS  ($4.30)
LBIX ($1.60)    VSR ($1.33)   PRSS ($2.82)   QUMU ($2.97) OESX ($1.81)    KRLTF ($.62)
CUI ($5.65)
























































CafePress (PRSS) provides e-commerce platform which enables customers to create, buy and sell a variety of customized and personalized products.

PRSS' mean reverting attributes are the following.
A 14.15M enterprise value versus TTM gross profit of 41.44M , 96.78M in TTM revenue, negative -51% 52-week price change, 341,912 shares purchased by insiders during 2016 for an average price of $3.03, F score improved from 3 during 2013 to 6 for the MRQ, shares outstanding reduced from 17.17M for 2013 versus 16.66 MRQ, total liabilities 57.79M for 2013 reduced to 12.47 MRQ, improved gross margin % from 34.22% for 2014 to 40.75%TTM
















RF Industries (RFIL) is engaged in the design, manufacture, and marketing of interconnect products and systems, including coaxial and specialty cables, fiber optic cables and connectors, and electrical and electronic specialty cables.

Enterprise value decreased by 58% from 2015.This compares to a stable share count from 2013, historically cheap back to 2013 for P/TB,EV/Rev,revenue per share, P/Current Assets less Ttl Liab and EV/GP.




































Imation (IMN) is a data storage and data security company. It helps organizations to create an integrated storage, private cloud, file sync and share enterprise solution





Karnalyte Resources (KRLTF $.62 )  (KRN.TO $.78)


Karnalyte Resources engages in the exploration and development of potash and magnesium products for agriculture and industry.
 


Market Cap = 17.94M USD or 21.65m CND , Enterprise value = 3.71M USD or 1.39M CND


Communications Systems  (JCS  $4.30) manufactures and sells modular connecting & wiring devices, digital subscriber line filters, structured wiring systems, and media and rate conversion products in North America and EMEA region.

Market Cap = 38.02M ... Enterprise Value = 25.88M



Versar (VSR $1.32) 

Versar provides solutions to government and commercial clients relating construction management, environmental services, munitions response, telecommunications, and energy in the United States.

Market Cap = 13.16M ... Enterprise Value = 33.92M