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.


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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.

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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.

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Friday, December 13, 2013

Coastal Contacts: Dominant, Growing, And Dirt Cheap

Disclosure: Long COA. Please read our full disclaimer.

We are pleased to share with our readers our thoughts on Coastal Contacts (NASDAQ/TSX: COA) and an interview with two of the company's executives.

We see multiple ways to win with Coastal.  The article discusses the company's growth opportunities and attractiveness as an acquisition candidate.  Despite being the market leader in online glasses in North America and having a recurring revenue  contact lens business doing $157 million in sales, the company is relatively unknown, misunderstood, and deeply undervalued, we believe.

To read why, see our full article on Seeking Alpha. The article includes an in-depth conversation with the company's President and VP of Business Development.  If that's not enough, we also included a link to a free pair of glasses, courtesy of Coastal Contacts.


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Wednesday, December 11, 2013

Intermap CEO: The Opportunity Is Bigger Than We Ever Imagined

Disclosure: Long Intermap. Please read our full disclaimer.

Our latest article highlights our investment in Intermap Technologies (Toronto: IMP.TO) (OTC: ITMSF).  Some of the things we see in the company include:
  • The turnaround is already showing green shoots with six consecutive EBITDA positive quarters
  • The market cap of $30 million is just a fraction of the $150 million the company invested to develop its technology assets
  • There is a pipeline of $500+ million of vetted opportunities
  • There are several potentially game changing contracts on which the company expects to hear back over the next twelve months
  • There is limited competition in the contracts
  • Customers are not particularly price sensitive
  • Management sees a long term opportunity to reach $100's of millions of revenue
  • Margins are extraordinarily high, with key divisions around 90% and others at 60%
  • A buyout of the company seems likely since a competitor should want Intermap's technologies
The article also includes an in-depth conversation with Todd Oseth, Intermap's CEO.  Todd explains what differentiates Intermap from competitors and shares his thoughts on the future of the industry.  You can read the full article at Seeking Alpha.

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Tuesday, December 10, 2013

What Authentidate Said Last Week

Disclosure: Long ADAT. Please read our full disclaimer
 
We just published an article summarizing Authentidate's (NASDAQ: ADAT) announcements at the LD Micro conference last week. The company announced that starting in January, a new manufacturing process will be implemented which will reduce the cost of the company's telehealth devices by 60%. This will have the impact of moving device margins from 20% to 50%.  Authentidate has best-in-class technology that was at times held back because of its higher price point.  This initiative should help the company close the price gap vs. competitors, and could prove to be a significant catalyst for the company.  The company's recurring revenue business model and industry developments were also highlighted at the conference.  Please read our full article on Seeking Alpha.

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