This Nano-cap Has a GAAP NAV of $6.68 per Share While Trading at Just $2.98 with a 10.9% Dividend

OH Baby Baby

I found a $30.9 million market cap company with a GAAP NAV of $6.68 per share currently trading at just $2.98. Furthermore when I ran a very conservative DCF on the company using a 3.0% revenue growth rate, a 9.9% operating income margin, and a 15% discount rate, I still got a target price of $6.09 per share. That’s double the company’s current share price. Oh did I mention this company also hands out a fat 10.85% FWD dividend? That’s not even the end of this story either. The company’s seen a decrease in net income over the past couple of years but this is due primarily to a pair of acquisitions the company has undertaken over the past two years which should lead to increased revenue as well as increased efficiencies as the company will be able to consolidate facilities, bringing down its operating costs.