A $14.2 Million Market Cap Company With $8.1 Million in Cash Trading at a 32% Discount to NAV With a 116% Cash Flow Upside
A high NAV With An Undervalued Cash Flow
An investment acquaintance of mine had sent me a text earlier in the week throwing me a tip on a stock he’d found while looking through potential investment ideas for a fund that he works for. The ticker symbol he sent my way, along with the reason he sent it encompasses exactly why I like investing in Nano-Cap land. The message simply read “________ looks like a good stock, too small for us to buy but you’ll like it”, and like it I did.
This company is simple to understand and is undervalued from both a cashflow and a NAV standpoint. Another huge positive, considering all of this recent uncertainty around trade tariffs, is that this company is domestic. Although they do make large steel purchases, their suppliers are all domestic as well. If other manufacturers in their industry become unable to source steel from China, companies already sourcing their products domestically might gain some significant advantages that could help them weather a tariff storm should this recent global economic spat continue.
If tariff tensions ease, this company is looking like it’s set up to maintain a steady period of growth with healthy margins leaving a cashflow value upside potential of $5.00 per share, a 116% upside compared to the company’s current share price of $2.32. This 116% cash flow value upside potential comes paired with a NAV that’s 32% higher than the company’s market cap. Lastly, this company only has $12K in long-term debt. That sounds like a buy in my book.