Re-Launching Micro-cap and OTC Stock Letter

If you are receiving this post, it means you likely were a subscriber to the newsletter that kept me occupied and engaged during the COVID lock-downs - namely, the Micro-cap and OTC Stock Letter. In the first iteration of it I covered obscure stocks — always small and deep value in nature, but with a range of drivers for underpricing. These “special situations” included but were not limited to:

1. Publicly traded limited partnerships such Beaver Coal (OTC: BVERS), Los Angeles Athletic Club (acquired, formerly OTC: LAACO), American Restaurant Partners (went private, formerly OTC: ICTPU)

2. Land companies such as Pardee Resources (OTC: PDER) and Garden City Company (OTC: GCCO)

3. Complex equity structures that obscured underlying earnings of assets such as FP Newspapers (TSXV: FP) and New England Realty Associates (NYSEAM: NEN)

4. Regular way deep value situations such as Optex Systems (Nasdaq: OPXS)

Over time the companies I profiled have performed quite well (I will quantify this in a later post) and re-enforced to me the attractiveness of hunting for investments among deep value “odd ball” special situations.

I also have continued to evolve my personal investing approach and now spend significant time looking at community banks that trade a deep discounts to tangible book value and post-reorganizational equities. Both areas that weren’t focus areas for me the last time around.

The benefits to me of writing my newsletter during my time at home during COVID were two-fold. I fleshed out my investment ideas and this made me a more thoughtful and better investor. As or more impactful than this, I developed a better network of like-minded investors. To this end, please feel free to reach out to me through the Substack platform to discuss ideas you are looking at or to provide feedback to me on my write-ups.

Stay tuned for future posts. The next post will come out later this week. Rather than a writeup of a stock idea, my first post will be a review Santa Monica Partners, LP’s track record and book available on Amazon that compiles this fund’s letters since inception. Santa Monica Partners is one of the longest standing and most successful funds in the OTC/pink sheets space and I learned a lot reading the compilation of their investor letters.

Obviously feel free to unsubscribe if this content is no longer of interest to you and please forward to any friends of yours that you think may like to read my future work.

Thank you and I’m looking forward to interacting with you again!