NROM
Been buying some NROM in the low to mid .50's here is what I like.
1) Stock is waaaaaaaaaaaaaaaaaay oversold at 52 week lows, in fact it is at basically 5 year lows, with and rsi of 20, my guess is we are buying the trough.
2) Company trades under book value.
3) Although the company recognized taxes, they don't actually pay them because of nol's, so in reality they earned .027 in q1, and expect things to get better.
4) They have signed a ton of locations with 239 deli locations that is up from only 106 last year., So picking up locations seems to be picking up. I fully expect this story to start to show promise and eventually work their way to a .10 run rate for the year fully taxed (eventhough earnings won't be taxed for quite some time), hence I think the stock should trade closer to $1 then .50 in my opinion.
Conclusion: I think NROM is undervalued here, this beat up stock in my opinion offers a very good opportunity at current levels in my opinion. All is just my opinion, and I could always be wrong though.
