The Value Road’s Exclusive May Stock Report

Asymmetric Bets and Special Situations

Every month at The Value Road, I publish a deep-dive overview highlighting the most compelling nano-cap and micro-cap stocks I've researched—opportunities you’re unlikely to hear about on CNBC or from mainstream analysts. These stocks are often illiquid, misunderstood, or completely off the radar, which is exactly where patient value investors can find asymmetric payoffs. This monthly roundup gives readers a full look at where I’m digging, what I’m passing on, and what might be on the verge of a breakout.

Paid subscribers get instant access to these write-ups as soon as they’re released—well before they hit the broader market conversation. Whether it’s a cash-rich net-net, a fallen angel emerging from bankruptcy, or an obscure business trading for less than its real estate, this newsletter is about finding overlooked value where others aren’t even looking. Below, I’ve summarized the seven names I’ve spent the most time on this month—starting with McRae Industries $MCRAA and ending with Nu Ride Inc. $NRDE.

McRae Industries

The first stock I looked into this month was McRae Industries $MCRAA. McRae makes work, western, and military boots under brands like Dan Post, Laredo, and Dingo. The company has a market cap of $110 million and an enterprise value of just $87 million. They've stayed profitable nearly every year since 2015 and have a habit of paying out special dividends when they sell off assets—like the 168 acres in South Carolina currently under contract for $1.76 million. If that sale closes by the April 2025 deadline, I think a dividend announcement could be on the table.

McRae looks cheap and has a strong operating history in a cyclical industry, but there are risks. Most of their western boots are made in China, India, and Mexico, and with U.S. tariffs on Chinese imports now at 145%, that's a serious headwind. I also visited two Tractor Supply stores and found only a single Dingo style on deep clearance, tucked away without signage—raising questions about demand or distribution. I like the business long-term, but with global trade policy in flux, I'm holding off for now.

Heliogen Inc.

The second stock I looked into this month was Heliogen, Inc. $HLGN. At first glance, it looked like a deep value dream—$12.6 million market cap, no debt, and $36.9 million in cash, giving it a staggering negative enterprise value of -$24.3 million. The company operates in the solar energy space using mirror arrays (heliostats) to generate heat and store energy. It was once a high-flying clean energy darling backed by names like Bill Gates and even had Stacy Abrams on the board. But after being delisted from the NYSE and falling from a $336 share price to just over $2, it’s become the definition of a fallen angel.

Dig deeper, and the story unravels fast. Heliogen has never produced real profits. Its only recorded net income came from accounting tricks tied to shutting down its Capella Project—not actual operational performance. Gross margins are weak, internal financial controls have had “material weaknesses” for years, and management turnover has been nonstop. I wanted this to be a hidden gem, but it’s more likely a value trap. Despite the appealing EV, I’m giving $HLGN a hard pass. Cheap stocks are only worth buying when there’s a real business underneath.

ADM Endeavors

The third stock I looked into this month was ADM Endeavors, Inc. $ADMQ. This is a classic nano-cap opportunity with a market cap of just $5.3 million and an enterprise value of $8.4 million. The company is in the final stages of completing a new 100,000 square foot production facility on 15.3 acres in Fort Worth, Texas—recently appraised at $13.7 million, with an additional 10 acres valued at $3 million. Once operational (expected summer 2025), the facility will 5x production capacity and support a fulfillment center to attract larger clients. To top it off, a major competitor just exited the business, displacing 50+ customers—an opening ADMQ is well positioned to capitalize on.

The company operates profitably, even without the new facility, and generated $391K in operating income on $5.7 million in 2024 sales with 35% gross margins. With SG&A largely flat over time and significant operating leverage on deck, the path to meaningful profitability is clear if revenues scale. Real estate alone covers more than twice the current enterprise value, giving a strong margin of safety. If execution hits and revenues climb toward $25 million, this could be a multi-bagger. The CEO is actively buying shares, but risks like execution missteps or a dilutive capital raise remain. Still, $ADMQ offers a compelling mix of downside protection and upside potential.

George Risk Industries

The fourth stock I looked into this month was George Risk Industries, Inc. $RSKIA. The company has a market cap of $75.6 million and an enterprise value of just $32.9 million, backed by $42.7 million in cash and investments with zero debt. It operates in three segments—security sensors, cable tools, and specialty components—serving sectors ranging from residential to high-security government applications. Despite slow revenue growth due to a sluggish housing market, RSKIA has remained profitable and continues to reward shareholders with a steady 6.47% dividend yield. The company is run by second-generation CEO Stephanie Risk-McElroy, who inherited not just the business but also a sizable investment portfolio built by her late father, giving RSKIA an unusual level of financial flexibility for a nano-cap.

Through consistent operating income, a growing investment portfolio, and rising dividend payouts, RSKIA is proving it can generate solid shareholder returns even in a challenging macro environment. The company posted 17.5% YOY net income growth in fiscal 2025, thanks largely to investment gains. A DCF model I ran projects a fair value of $20.24 per share, suggesting 31% upside from current levels. With a strong balance sheet, prudent management, and potential housing tailwinds ahead, $RSKIA looks like a rare small-cap worth holding long-term.

Entravision Communications

The fifth stock I looked into this month was Entravision Communications $EVC. This is a microcap broadcaster with a $177 million market cap and an enterprise value of $279 million. The company owns 49 Hispanic television stations, 44 Hispanic radio stations, and Smadex—a fast-growing ad-tech platform based in Barcelona. Smadex just posted 57% revenue growth in Q1 2025 and achieved real operating leverage with EBITDA margins expanding to 13.8%. At a $28 million EBITDA run rate, a conservative 13x multiple would value Smadex alone at $364 million—more than the entire enterprise value of the company. Meanwhile, legacy media assets are at breakeven but showing signs of a turnaround, with potential acquirers like Estrella Media (now sharing office space with Entravision) likely circling.

There’s a powerful regulatory tailwind forming too. If national and local station caps are lifted, M&A in broadcasting will explode—and Entravision's traditional media assets are prime targets. Even without deregulation, spectrum auctions and media consolidation are already underway, with recent FCC approvals signaling the green light. And unlike other heavily levered broadcasters, $EVC has one of the cleanest balance sheets in the space. The stock offers multiple ways to win: an undervalued ad-tech gem, hidden spectrum value, and legacy media assets potentially being prepped for sale. With optionality on policy changes and minimal downside, Entravision looks like a compelling asymmetric bet heading into the 2025 political cycle.

SCI Engineered Materials

The sixth stock I looked into this month was SCI Engineered Materials, Inc. $SCIA. SCIA manufactures specialty materials used in thin film coatings for industries ranging from eyewear and kitchen hardware to semiconductors, solar panels, aerospace, and defense. The company has no debt, $7.4 million in cash, and a market cap of $19.9 million, giving it an enterprise value of just $12.6 million. That valuation caught my eye. SCIA has been consistently profitable since 2017 and avoids leverage, which makes its clean balance sheet a major plus. While revenue has dipped recently, gross margins are actually expanding—and the stock is still up 357% over the past five years, despite a 17% pullback in the past year.

The big unknown is SCIA’s top customer, which made up 74% of revenue in 2024. Based on their product lineup and trade show appearances, the customer is likely a defense contractor. If so, the company could benefit from rising military demand and bipartisan support for domestic sourcing—especially in light of a newly announced $142 billion U.S.-Saudi arms deal. Tariff easing between the U.S. and China could also help unlock supply chain blockages that have weighed on customer orders. With a fortress balance sheet, optionality from M&A or activist involvement, and a low EV that would make any acquirer look twice, $SCIA is worth watching closely—even if I’m holding off until I learn more about that major customer.

Nu Ride

The seventh stock I looked into this month was Nu Ride Inc. $NRDE, formerly known as Lordstown Motors. Nu Ride has a market cap of $20.8 million, no debt, and $28 million in cash, giving it a negative enterprise value of -$7.2 million. Even more compelling, the company has a GAAP net asset value of $2.55 per share—nearly double its current share price of $1.29. After emerging from bankruptcy in March 2024, Nu Ride retained over $1 billion in net operating loss carryforwards (NOLs), which could be valuable in a future business combination. The company also has a pending lawsuit against Foxconn, seeking up to $60 million in damages tied to a broken investment agreement. If successful, the litigation could unlock substantial upside for shareholders.

But this isn’t a risk-free setup. Nu Ride is currently a shell with no operations, and litigation with Foxconn may take years to resolve. Legal costs could burn through the company’s cash before a judgment is reached. However, the downside is somewhat cushioned by the large cash pile and NAV, and insiders have been aggressively buying stock throughout 2025. This is a textbook special situation—either a total bust or a multi-bagger if the litigation resolves favorably or the company successfully launches a new venture using its NOLs. It’s speculative, but at today’s valuation, the asymmetric risk/reward could be worth a small bet.

Conclusion

That wraps up this month’s edition of The Value Road. From cash-rich shells and negative enterprise value plays to turnaround stories and underappreciated compounders, these seven names each offer a different flavor of deep value. Some—like $SCIA and $RSKIA—are steady operators with strong balance sheets, while others—like $NRDE and $HLGN—fall squarely in the high-risk, high-reward bucket. As always, the goal isn’t to chase heat or headlines, but to find asymmetric opportunities the market hasn’t fully priced in. I’ll continue tracking each of these names closely, and paid subscribers will get updates as catalysts unfold, financials are released, or conviction changes. Until then, keep turning over rocks—this is where the best ideas tend to hide.