Value Microcaps Pick Six Lotto 15

[ghmm]

NSOMNIYAK CHALLENGE
Its always good to hear why other people made their picks (even if it was where their pet monkey through the darts) so here are mine.

FREE - This is a small bulk shipping company. They have less debt (though still a fair amount) then most. I am not too concerned about their debt especially if earnings and rates keep improving. In fact I think they are getting close to being able to buy another ship while maintaining the level of debt. I get a good sense of management knowing the business but am concerned they may be purchase happy and dilute at too low a price to make a purchase (especially with a couple of ships nearing an end of their useful life). Now on to the positives. The spot rates and BSDI index have generally been improving for some time and management has been doing a good job playing the spot market the past year or so rather then locking in a lower rate. I actually thought the stock would move much more on the Q1 results .09.

PPCO - Its been talked about on the VMC board but here is why I like it. There EPS will benefit from receiving the full royalty (ENDO was holding back 50% till some costs were recovered). Plus Opana ER sales are continuing to improve! I think .22 +/- in Q2 is very doable even with the proxy battle. The proxy fight doesn't concern me to me the bigger risk is an at risk launch of generic Opana ER. Additional upside could come from positive news on their Orphan drug (but I think data isn't likely till after PSL15 ends). A win on the patten front for Opana would be a real coup and skyrocket the stock. Also they have been signing nice little deals using their TIMERx technology. If one of these advances and turns into even half of an Opana the stock will really take off too.

TCCO - I've owned this stock for close to a year and my regret is not buying more of it a year ago. They provide secure communications products and have been mentioned on the VMC boards. They have preannounced a huge order that will be delivered this year so baring problems should do quite well in the next 3 quarters or so. The upside could come in a few areas. Management has been pretty conservative in PR's (I like conservative management) so you won't get forward looking expectations of more orders. But in addition to that possibility in reading the Q's/K they mention about trying to partner with radio manufacturers and they have added staff the past year so I think they are foreseeing continued growth.

LGND - Is the only pick I do not own (but secretly hope it does bad in the competition so I can buy it). They are an early stage drug discovery company with some nice partnerships. I think the stock has been hammered for a couple years and could recover well. I haven't invested (yet) because I'd like to do more DD and see how a couple of their partnered products turn out (one is approved and they are getting royalties the others I am interested in are in mid stage trials).

LMLP and MNTA I picked before and my reasoning hasn't changed since the PSL14 so anyone interested can see what I wrote then #msg-45342130