Value Microcaps Motherboard

[researcher59]

hweb: MVCO

Thanks for the reminder on MVCO. I owned this stock last year, bought in May at 2.45 and sold in November at 2.48. $45 profits less commissions. Got tired of waiting for some decent results, and was disgusted with continuing writeoffs on their Utah construction project. Right after I sold the stock started to zoom, it figures.

It looks attractive now that the Utah writeoffs are likely done. Sound like EPS would have been over $1 last year without those. The planned RMI spinoff is also impressive, asssuming they get the valuation they've filed for. The SEC filing shows the tentative IPO pricing at $12 per share, of which MVCO retains 60% ownership or 1.5M shares. That translates to a value of $18M or about $4.50 per share of MVCO stock. Of course they'll be spinning off a lot of assets too. Nonetheless, it should further boost their stock valuation after the spinoff, imho.

MVCO is very weak again today, so maybe they've got some bad news lurking. I picked up a few shares, but the recent downtrend ahead of earnings is alarming. I hope they haven't found another losing project with cost overruns to replace Utah. But the chart shows strong support at $4, and if there's no bad news coming, it seems like a great bargain today at $4.65.