Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The Low Price/Low Float Portfolio 7/19/2021 results:
Portfolio cost: $49,287
7/16/2021 Value: $47,173
7/19/2021 Value: $46,405
Daily gain/loss: ($768)
Total gain/loss: ($2,882)
4 sell orders executed: 2 at 20% level, 2 at 40% level
5 buy orders executed
Since inception:
22 sell orders executed: 13 at 20% level, 9 at 40% level
16 buy orders executed
This experiment makes me think of the movie Young Frankenstein. If the results so far are indicative of a longer trend, there may be an abbynormal brain at play here!
Seeing some miners hitting new 52-week lows this morning in the pre-market including:
BTG
IAG
FSM
EGO
AXU
The Low Price/Low Float Portfolio 7/16/2021 results:
*Yesterday's results were erroneously titled 7/14/2021 results.
Portfolio cost: $49,287
7/15/2021 Value: $48,707
7/16/2021 Value: $47,173
Daily gain/loss: ($1,534)
Total gain/loss: ($2,114)
2 sell orders executed: 1 at 20% level, 1 at 40% level
2 buy orders executed
Since inception:
18 sell orders executed: 11 at 20% level, 7 at 40% level
11 buy orders executed
The portfolio took a good old-fashioned whuppin' today. Tough times for the micros the past few days. Today out of 908 total listed stocks selling for $5 or less, there were 685 down, 184 up, and the rest were unchanged.
The Low Price/Low Float Portfolio 7/14/2021 results:
Portfolio cost: $49,287
7/14/2021 Value: $49,316
7/15/2021 Value: $48,707
Daily gain/loss: ($609)
Total gain/loss: ($580)
3 sell orders executed: 2 at 20% level, 1 at 40% level
3 buy orders executed
Since inception:
16 sell orders executed: 10 at 20% level, 6 at 40% level
9 buy orders executed
The "plan" is off to a rocky start with the lower tier stocks in a bit of a funk the past few days. If you can't handle a little adversity, though, you shouldn't be in the stock market.
littlejohn, to your points:
#1 The market has been good to me over the years, and you can only blow so much money in strip bars.
#2 The screening process was pretty easy.
#3 The initial buying wasn't all that bad, but setting up all the sell orders at the percentages wasn't my favorite all-time task.
#4 Patience is definitely a virtue in the market. Agreed.
DTSS - that would have been a good one. Traded 88M shares today. Closed yesterday at $2.93. High today $6.84.
The Low Price/Low Float Portfolio 7/14/2021 results:
Portfolio cost: $49,287
7/13/2021 Value: $49,814
7/14/2021 Value: $49,316
Daily gain/loss: ($498)
Total gain/loss: $29
8 sell orders executed: 5 at 20% level, 3 at 40% level
6 buy orders executed
Since inception:
13 sell orders executed: 8 at 20% level, 5 at 40% level
6 buy orders executed
Researcher, it definitely could be tougher sledding with this experiment. It is off to an inauspicious start this morning. I'm showing 17 positions up and 32 down presently.
Word on the street is my backers are already thinking of putting me on double secret probation and installing a trustee.
Nelson, it would be nice to be buying or selling something in that portfolio this morning, but it is like Dullsville it is so quiet.
OXBR - That was one that was sold at the +20 and +40 percent levels yesterday in the after hours market.
The Low Price/Low Float Portfolio 7/13/2021 results:
All 49 positions were bought today in the regular session. The maximum float in the introductory post was erroneously listed as $5M. The correct maximum float is 5M shares.
Portfolio cost: $49,287
7/13/2021 Value: $49,814
Daily gain/loss: $527
Total gain/loss: $527
5 sell orders executed: 3 at 20% level, 2 at 40% level
0 buy orders executed
All orders were executed in the after-hours session.
KIK and bbotcs, buying the stocks in the portfolio today and later getting the sell orders in place was a time-consuming process for sure.
I wasn't going to post results tonight, but there were some after-hours movers, and I went ahead and placed some individual sell orders as I saw them moving, so I think it's probably better if I post the results.
Introducing The Low Price/Low Float Portfolio Experiment.
This experiment will try to take advantage of the current rampant speculation and extreme volatility in low priced/low float stocks. This experiment is being conducted with real money. I screened for listed stocks under $5 with a float of less than $5M. Forty-nine positions of approximately $1,000 each were purchased today during regular market hours.
Sales Methodology:
Each position will start off with GTC+extended hours sell orders for 25 percent of the position at +20%, +40%, and +100% levels. The last 25% of the position will be sold at my discretion. As an example, for a position of 1000 shares purchased at $1.00, the sell orders would be as follows:
Sell 250sh at $1.20
Sell 250sh at $1.40
sell 250sh at $2.00
In setting the sales levels, I was trying to balance capturing the inherent volatility of these types of stocks with being able to participate in some crazy moves. I would like to be able to hit a lot of singles, but still hit the periodic home run.
As sales are made, buy orders will be re-established at the previous buy levels. All buy orders will be good for the day only in case bad news comes out pre-market or after hours. If market futures are sharply lower in the pre-market, all buy orders may be cancelled.
I will update the daily gain/loss and the total gain/loss each day.
Position and Price Paid:
AAME - $4.37
AEHL - $4.00
AMS - $3.05
ANPC - $4.35
APOP - $3.87
APWC - $3.82
ARTW - $3.83
AWX - $4.70
BAOS - $3.33
BGI - $2.38
BOSC - $4.64
BRN - $2.57
CLWT - $4.08
CTIB - $2.65
CUEN - $4.00
CYAN - $3.03
EFOI - $4.26
EVK - $2.68
GROM - $3.92
HGSH - $2.00
HIHO - $4.28
HUDI - $4.70
HUSN - $3.44
IKT - $2.67
JP - $1.52
KBSF - $4.12
LIXT - $3.25
LMFA - $4.48
MARPS - $4.83
MTSL - $3.94
NTEC - $3.34
NURO - $3.54
NVFY - $3.71
OCC - $4.33
OSN - $4.59
OXBR - $3.31
PHCF - $4.05
PPSI - $4.04
QH - $3.53
RCON - $3.63
RSLS - $4.21
SSY - $2.50
STRR - $3.65
TAIT - $4.93
TC - $3.39
USEG - $4.16
WHLM - $4.94
XTNT - $1.67
ZIVO - $4.20
MDIA - The KaaBlamm was my jaw dropping to the floor when I saw the price. Unfortunately I sold that one a long time ago.
UUU $7.28 - $1.72, low floater actually down on a lousy quarter. Something actually makes sense. Tempting to short, but knowing you're just one Mr. Investor Pro pump away from getting your head ripped off, gives a person pause.
MXC - It had that big low-float pop in the after hours session the day their earnings came out, but since then it's been floundering. I found that a little surprising. These low floaters can be unpredictable to say the least.
It was nice to see a large buy order showing up in the pre-market this morning. I unloaded some and have been doing some trading. You gotta love these zero dollar commissions!
Oil has had one heck of a run. In April of last year the futures went negative, and now we're in the $70s.
MXC - $12.30 + $3.41, Looks like the low-float maniacs have it firmly under their control. With total shares outstanding of 2.07M and a float of only 847k, it could get interesting.
SVT - That's a nice pay package for Mr. Trbovich. And the good news for him is that he won't be missing a paycheck, at least for right now, since the board put him on PAID administrative leave.
SVT - Montana Advisors Demands Sale of Servotronics
Business Wire - Jun 16 10:06 EDT
MIAMI--(BUSINESS WIRE)-- Montana Advisors issues open letter to the Board of Directors of Servotronics, Inc (NYSE: SVT):
Dear Members of the Board of Directors:
As a significant stockholder of Servotronics, Inc (NYSE: SVT) or ("The Company") we are beyond troubled by the recent lawsuit filed by an employee of the Company. We believe there have been numerous breaches of fiduciary duty by management and most importantly the Board. Upon reading the lawsuit in detail with our legal counsel, Montana has come to the conclusion that existing management can no longer be trusted to run our Company. In addition, we also believe the Board can no longer be trusted to provide oversight that is in the best interest of shareholders. It is clear that Servotronics is not run in the best interest of shareholders, and rather it is run as a private Company for the benefit of one person, Mr. Kenneth Trbovich. We demand the Board form a special committee to begin an immediate sale process of the Company to the highest bidder.
Should you ignore this, we will be forced to pursue all available legal measures, including holding each director liable for breaches of fiduciary duty. It is imperative that the Board act now.
We look forward to hearing from you in a timely manner.
Respectfully,
Kunal Mehta
RFIL - Traded up into the 10s yesterday after hours. I guess some folks weren't paying attention to the one times in there. I agree that it doesn't seem like a great bargain in the 8s. This 5G bonanza always seems to be in the distance.
As you mentioned the backlog is very strong, and this from the CEO on the cc is also encouraging:
"While it’s tough to predict timing on certain larger orders and the related fulfillment, with what we know today, we expect to see a steady increase over the back half of the year, with continued sequential revenue growth in both Q3 and Q4."
Swampboots, it sounds like you took a trip in the way back machine. I haven't kept track of that portfolio since I ended the experiment.
That sounds shady as hell. That article should be subtitled, "The fleecing of John Q. Public".
That is amazing especially when you consider the fact that oil futures went into negative territory in April of last year.
https://www.bloomberg.com/news/articles/2020-04-20/negative-prices-for-oil-here-s-what-that-means-quicktake
BBW $16.52 + $2.45, killer alert yesterday, Nelson. It just keeps going up. I bought some after seeing your post, but sold way too soon yesterday.
FRD - I added some more today, also. The hot-rolled coil steel futures prices bumped up again yesterday.
https://www.investing.com/commodities/us-steel-coil-futures-historical-data
BGFV - That's probably because DKS reported record numbers this morning:
https://www.yahoo.com/now/dicks-sporting-goods-reports-record-113000649.html
FRD - That's a good question. They owned 542k shares as of last Friday. I was looking back at some of the companies where DPW acquired stakes previously. This value stock stake in FRD seems a bit out of the ordinary for them. The other stakes I noticed were in very low-priced or very low-float stocks or a combination of both.
I really wouldn't want to hazard a guess as to whether they are selling today or not. It definitely seems like someone is keeping a cap on the stock, though.
Etrade - I called again this morning to complain about the alerts still not working on the pro platform. The rep put me on hold to find out when it is supposed to be resolved. He came back and told me, "within the next 30 days"! Unbelievable!
I asked him to have my "relationship manager" give me a call. It will be interesting to see what he has to say about this. This is a bunch of crap.
FRD - Stellar guidance:
Friedman Industries Provides Fourth Quarter Earnings Guidance and Announces New Sinton Facility
GlobeNewswire - May 25 09:00 EDT
LONGVIEW, Texas, May 25, 2021 (GLOBE NEWSWIRE) -- Friedman Industries, Incorporated (NYSE – American: trading symbol FRD), a manufacturer and processor of steel products, today announced guidance for its fiscal fourth quarter ending March 31, 2021, and announced plans for a new facility in Sinton, Texas to support future growth.
EARNINGS GUIDANCE
Friedman Industries announced guidance for its fourth quarter ending March 31, 2021, and expects to issue audited results in late June. The Company expects fourth quarter net earnings to be in the range of $9.5 million to $10.5 million, making it the most profitable quarter in Company history. The estimated net earnings translate to estimated diluted earnings per share in the range of $1.37 to $1.52. Comparatively, diluted earnings per share for the third quarter ending December 31, 2020 was $0.30.
“Rapidly increasing steel prices and our strategic decisions to implement risk management practices and expand our supply chain options ahead of a tightening of global supply are the primary factors driving the significant increase in expected fourth quarter results compared to those of the prior quarter,” said Michael J. Taylor, President and Chief Executive Officer.
“As we enter our 2022 fiscal year, we expect further improvement in operating results for the first quarter ending June 30, 2021 compared to the fourth quarter, due primarily to further escalation of steel prices, which has created a strong margin environment,” Taylor continued.
Estimates for the quarter ended March 31, 2021 are unaudited and subject to adjustment pending the completion of the Company’s financial statement audit. Statements about the quarter ending June 30, 2021 are based on expectations given current market conditions, which are subject to change.
NEW FACILITY PLANNED FOR SINTON, TEXAS UPGRADES PRODUCT PORTFOLIO AND ENABLES COMPANY TO SERVE BROADER CUSTOMER BASE
The Company is excited to announce plans for a new facility in Sinton, Texas, which is expected to be well positioned to capture additional demand growth with an expanded portfolio and geographic advantages. Steel Dynamics, Inc. (“SDI”) has invited Friedman Industries to locate the new facility on the campus of its new flat roll steel mill currently under construction in Sinton, Texas. SDI’s Sinton mill will be the most advanced electric arc furnace mini mill in the world and will have an estimated annual capacity of 3 million tons with capabilities of producing flat roll up to 1” thick and 84” wide at 100,000 psi yield.
Friedman Industries’ Sinton location will consist of an approximately 70,000 square foot building located on approximately 25 acres leased from SDI under a 99-year agreement. The Company has selected Red Bud Industries to build one of the world’s largest stretcher leveler cut-to-length lines, capable of handling material up to 1” thick, widths up to 96” and yields exceeding 100,000 psi.
“This facility will expand the size range and grades of materials we can deliver to our coil segment customers, while extending our competitive footprint to better serve customers in the Southwest United States and Mexico,” commented Taylor. “The strategic co-location with SDI will enable us to capture freight efficiencies that will enhance our competitiveness and reduce our environmental footprint. We believe this modest strategic investment will create significant long-term value for our shareholders, enabling Friedman to both better serve existing customers and capture new opportunities in a region that is seeing significant long-term business investment. We would like to thank the SDI team for this opportunity and look forward to the potential this investment creates for Friedman Industries and its shareholders.”
The Company expects the location to commence operations in April 2022, and estimates the total cost of the project to be $21 million. On May 19, 2021, Friedman Industries signed a credit agreement and related documents with JPMorgan Chase Bank N.A. for a $40 million 5-year asset-based revolving line of credit facility (“ABL Facility”). The Company expects to fund the Sinton capital expenditure through a combination of cash generated from operations and funds drawn under the ABL Facility. More information about the ABL Facility can be found in the Company’s Form 8-K filed with the SEC on May 25, 2021.
Friedman Industries also has coil product locations in Hickman, Arkansas and Decatur, Alabama.
STARTUP OF NEW DECATUR, ALABAMA EQUIPMENT
In March, the Company’s new stretcher leveler cut to length line was commissioned at its Decatur, Alabama coil processing plant. After a period of equipment tuning and operator training, the Company has expanded its commercial efforts during May 2021.
Taylor commented: “We are incredibly pleased with the response we are seeing and the potential we anticipate from this new equipment that positions us well in a favorable demand environment.”
ABOUT FRIEDMAN INDUSTRIES
Friedman Industries, Incorporated, headquartered in Longview, Texas, is a manufacturer and processor of steel products with current operating plants in Hickman, Arkansas; Decatur, Alabama and Lone Star, Texas. The Company has two reportable segments: coil products and tubular products. The coil product segment consists of the operations in Hickman and Decatur. The Hickman facility operates a coil-to-coil temper mill and a corrective leveling cut to length line. The Decatur facility operates a stretcher leveler cut to length line. The tubular product segment consists of the operations in Lone Star where the Company manufactures electric resistance welded pipe and distributes pipe.
Etrade - The alerts haven't been working for me since Monday. I called Tuesday and after troubleshooting for a half hour, the rep contacted tech support and was told it was a known problem and they are working on it. I took yesterday off, and I see today it still isn't working. I called again, and I was told the vendor is working on it!
FRD - DPW acquires 6 percent stake:
https://www.sec.gov/Archives/edgar/data/0000039092/000121465921005346/r513212sc13d.htm
Now we know the reason for the huge volume and price surge on May 3. They didn't exactly ease into the position.
I think the low-priced issues in general have cooled. I just did a screen for listed stocks under $2 and it spit out 303 of them. There were 14 unchanged, 39 up, and 250 down today. Those are sobering numbers considering the major averages were all up today.
I welcome the change since the microcaps have seemed really over-priced for a while now.
I notice when companies report a bad quarter recently there is a price to pay, whereas for a while they were getting a slap on the wrist.
Etrade was very slow this morning for me. It hung up a few different times while in the process of trying to display the order preview window. It seems to be better now.
BGFV - I was surprised it got down there, also. I picked some up in the 20s and 21s. That was one awesome earnings report.
They blew away their and the analyst's estimate for the quarter. They guided way above the next quarter's analyst's estimate. They issued a $1.00 special dividend, and they upped the regular quarterly dividend.
Big 5 Sporting price target raised to $26 from $19 at Lake Street
TheFlyontheWall.com - May 05 09:11 EDT
Lake Street analyst Mark Smith raised the firm's price target on Big 5 Sporting to $26 from $19 and keeps a Buy rating on the shares following Q1 results that he said were "well above our expectations and management's guidance." Big 5's same-store-sales guidance for Q2 gives him confidence that the strong momentum continues and while demand in certain product categories may slow, Smith thinks overall product demand will remain above pre-COVID levels, he said.
OT - I'm glad he's not a sore loser.(eom)
HBP - Thanks for the cc notes. I intended to listen in, but I forgot. I traded this one both after hours yesterday and today. I am really enjoying these no commission trades!
I like the sound of this quote from the CEO in the earnings PR:
"I am proud of the entire organization as our collective efforts have created a very bright future for our company and our stakeholders.”
ISNS - Doesn't make much sense. It went even higher after hours. Seems to be coming down now after they reported their earnings. It's just another low-float runner.
RHE with their 1.5M share float went nuts today.
ISNS - Back above $8 again after dropping below $7. Lots of volatility.