>>>Boyd, did you discover these companies by reading the Napeague Newsletter??
No, not entirely. However, I do subscribe to Bob Davis' newsletter and find his research to be quite in depth. I trust his fundamental analysis and insights on the companies he researches. Sadly, he seems to be drifting away from the micro cap market segment as he has said recently that his readership is not comfortable with this area of the market. He has not posted any new micro cap ideas in some time....
I'm sure you recall MTY and CLZR from Bob's list of attractive opportunities. I know he has also posted about MTY on this thread. Interestingly enough, I independently uncovered MTY and one other stock on Bob's list, KAB, about 1.5 years ago. Bob had posted some info on the KAB Yahoo board about a "flash report" on KAB at his website. I followed the link and found that his style of investing seemed to be similar to mine.
CLZR is another on Bob's list that I have to give him most of the credit on. He was dead right about the company's turnaround. I usually don't invest in turnaround situations, but the story at Candela is quite compelling. Anytime you can get in on the ground floor of a company that is beating the pants off its competitors and has patent rights to new technology and is the low cost producer....well you can understand my enthusiasm.
Marlton Technologies was a company I discovered on my own about 1.5 years ago. I have been buying the stock on its way down as I believe its fundamentals have yet to be discovered by the market. If you look at MTY's operating margins, sales growth, and EPS growth, it flies in the face of the stock's stunning decline over the past year.
Some other stocks I am currently invested in: DDIM, NHCH, OHB, PSEM, PFINA, RTC, and a few others on Bob's list: ADTC, ABIX, KAB
I use Bob as another starting place for ideas. The web is a fantastic resource for trying to find these small, undiscovered companies. And with larger cap stocks selling at historically high valuations and very vulnerable to a sell off, I'm comfortable putting new money to work in these areas. |
