Thursday, July 31, 2014

Where Almost Counts: Horseshoes, Hand Grenades, And Silver Bull

Disclosure: Long SVBL. Please read our full disclaimer.
  • Silver Bull is one of the largest and most attractive independent silver resources around.
  • The company has been advancing towards production and silver prices have been moving up, yet the stock price has moved down.
  • Silver Bull has over $2 billion worth of zinc which it gets little credit for. Zinc is near a 3 year high.
  • We argue that even critics would have to agree that this company is worth multiples of its current market cap.
 You can read our full article here. 

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Tuesday, July 15, 2014

Ur-Energy: A Uranium Giant In The Making, Part 2

Disclosure: Long URG. Please read our full disclaimer.
  • Since December, Ur-Energy has transitioned from a development company to one of the largest domestic producers of uranium, with capacity to produce 20% of US supply this year.
  • The company has materially added to its resource, posted two quarters of solid production, and given strong guidance through 2015 yet the stock price is unchanged.
  • We explain the upside potential that convinced us to become a top shareholder of the company.
  • We provide an interview with the company’s Chairman highlighting progress at the company.
You can read our full article here.

Legal Disclaimer      Twitter: @lazarusip

Monday, February 24, 2014

Cbeyond Won't See Beyond 2014

Disclosure: No position in CBEY. Please read our full disclaimer.
Cbeyond (CBEY) has some challenges, but it's too cheap to ignore. This telecom services company has had trouble growing and differentiating its technology, but still offers nearly half a billion dollars in revenue, a clean balance sheet, and an attractive customer base. It is also free cash flow positive and rather cheap, with a multiple of 2.9x EV/EBITDA. In November 2013 the company announced that it was forming a committee to explore strategic alternatives, which may include "a business combination or sale of the Company." We wouldn't be surprised if someone bit.

Click here to keep reading.

Legal Disclaimer      Twitter: @lazarusip

Monday, January 6, 2014

SuperCom CEO: We Just Tripled Our Revenues And We're Only Getting Started

Disclosure: Long SPCB. Please read our full disclaimer.

Every once in a while we walk out of a first meeting with a management team and are interested in immediately buying stock in the company they run. That was the feeling we had the first time we met with the team from SuperCom (Nasdaq: SPCB). We were so intrigued by our initial visit that we followed up the next day by returning to their office for a second meeting. Weeks later we became one of the company's largest shareholders.

What we saw, and still see, in SuperCom is the rare combination of:

  • a highly incentivized management team with a track record of building shareholder value
  • a corporate turnaround to which the market was giving no credit
  • an acquisition (now complete) of the company's largest competitor that nearly triples the revenue base and grows EBITDA 2.5x
  • a recurring revenue model with long term visibility
  • a loyal customer base that's extremely sticky
  • growth opportunities that offer the prospect of multiplying the top line
  • a very low valuation

Legal Disclaimer      Twitter: @lazarusip

Ur-Energy: A Uranium Giant In The Making

Disclosure: Long URG. Please read our full disclaimer.  

Are you interested in hearing about a hot stock in a roaring sector? The kind that breaks new highs on a daily basis with huge momentum and strong analyst support behind it? If so, read no further. 

But if you are interested in a flat stock in a hated and misunderstood sector where you have the chance to make a highly contrarian investment that just might work out far better than anyone is anticipating, this article is for you.

Read our full article about about the undiscovered company that is expected to produce 20% of US uranium supply in 2014.

Legal Disclaimer      Twitter: @lazarusip

Tuesday, December 24, 2013

Speculative, But Full of Promise

Disclosure: Long BRFH. Please read our full disclaimer.

We have a new article out on a small but very interesting company.  If it works, and there's ample reason to believe it will, the upside is many multiples of today's share price.  Here is a link to our article on Barfresh Food Group.

Legal Disclaimer      Twitter: @lazarusip

Tuesday, December 17, 2013

Will Silver Bull Be A 10-Bagger In 2014?

Disclosure: Long SVBL. Please read our full disclaimer. 

If you have any interest in microcap miners, see our latest article (including a CEO interview) on a large investment of ours, Silver Bull Resources.

Highlights from the piece:
  • CEO Tim Barry calls Silver Bull, "one of the top three largest undeveloped silver resources in Mexico that isn't already owned by a major."
  • The company's flagship project is in a world class mining region and has very attractive economics with high returns.
  • There's a low cash burn and over two years of cash on hand.
  • Investment catalysts for next year include a pre-feasibility study, permitting progress, and resource expansion.
  • Silver Bull is interested in selling itself and has 13 signed confidentiality agreements in place.
  • Coeur, a top ten silver producer with a history of acquiring Mexican silver properties, owns over 11% of Silver Bull and paid for their shares prices 61% and 119% higher than the current share price.
  • Silver prices are one of the big unknowns to the story, although the company's project is breakeven with silver as low as $13, and has exponential upside should silver go to levels it saw just earlier this year.
The full article is available here.

Legal Disclaimer      Twitter: @lazarusip

Sunday, December 15, 2013

AeroGrow CEO: We're Back With A Vengeance

Disclosure: Long AERO. Please read our full disclaimer. 

We are pleased to announce that we have a new article and interview published, this time on AeroGrow International (OTC: AERO), owner of the AeoGarden product line.  This is a turnaround story that’s well underway, yet few have noticed.  There’s both a trade and in investment in the stock, as well as substantial optionality.

The key things we see in AeroGrow are:
  • A high margin business with a recurring revenue model
  • An existing and historical revenue base that evidences consumers' affinity for the products
  • A strategic partnership with Scotts Miracle-Gro that provides capital, branding, distribution, and expertise
  • Very recent re-entry into the retail channel at large chains nationwide
  • Two innovative products in the pipeline and one recently launched
  • A call option on marijuana, including both the business opportunity as well as the stock getting repositioned as a pot stock and getting a bubble-like multiple that the industry is afforded currently
  • A call option on an acquisition by Scotts or another company
  • A miniscule market cap that barely reflects the company's potential
To learn more, see our full article on Seeking Alpha. The article includes a detailed conversation with the company’s CEO.  It’s certainly a microcap, but we think an interesting one.

Legal Disclaimer      Twitter: @lazarusip