Replies to post #28575 on Value Microcaps Motherboard

[Bobwins]

nowayout...are you talking Gary at Microcap Kitchen??

He operates on a different principle. He tries to find microcaps before they turn profitable. He said one time that he has over 200 stocks. Buys them based on early DD and then cashes in when stock is discovered.

I tried following some of his picks but failed to show any profits. I decided that I like waiting for profits to show up first or at least guidance of profits.

I bought ncnc.ob for the same reason I bought MDF. Both had terrible balance sheets with a plan to get out. They are both in sectors that are improving. I like Earley at MDF better as a manager. He is much stronger, conservative in guidance and PR. However ncnc.ob does have a window of opportunity to show profits and fix the terrible balance sheet.

We'll see if he can pull it off. Actually MDF had a worst balance sheet because their debt of $4 million was owed to the IRS. That threat was much greater than 1.2 million owed by ncnc. They also had pharmacy losing over a million a year dragging them down.

Profits fix a lot of problems. They give options for companies to issue debt or stock. They provide cashflow to start new initiatives. They are the foundation for everything we like about value microcaps.

MDF was unique because it was in a sector that I think will be good for many years. The Medicare improvements have changed the outlook for the sector and turned it into a possible growth stock. Ncnc.ob sector will be in favor for a much shorter time, although Quilite could provide much needed stability if they actually acquire it.

Do I see any buys like MDF?? In retrospect, MDF looks fine but when I started buying at .15, I was scared to death. Held 150K shares at the peak. Am under 100K now.

If you want 10 baggers, I can't give you any. I have a hard time identifying those. They need a depressed price to start with, big jumps in results and a cooperative market.

I have made my bet on energy for gains that are double +. I like Canadian junior explorers. I think they are undervalued compared to US microcaps and have upside from both discovering additional production as well as the shortage of ngas in North America. This is a multi year trend that could result in some big gains IF they reach similar valuations to US energy stocks AND ngas remains in relatively short supply for the next several years.

My favorite Canadian ngas stocks are rgylf.pk, sheyf.pk, czekf.pk, dzrff.pk and ttrhf.pk. Look at the Ihub board for czekf.pk. It has resource links for researching the Canadian stocks. Good luck, Bobwins

PS. I may never give you another MDF. It was a company in turnaround with exceptionally good mgmt in the right sector. Tough to come up with all those attributes AND have the time to invest before the price goes up too much and the WILL to invest significant amounts. 10 baggers are rare and are difficult to predict.