I’m interested in post bankruptcy, NAV, and undervalued micro and nano cap stocks. Margin of safety over everything. I write about cheap stocks.
Joined August 2023
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Of course that’s your contention. You’re a first-year deep value investor.
You just finished The Intelligent Investor, think net-nets are a cheat code, and you’re tweeting P/B ratios like they’re scripture.
Right now, it’s all about Ben Graham, "margin of safety," "cigar butts," you even printed out a checklist.
Next month, you’ll discover Klarman and start saying things like “risk is not volatility” in casual conversation.
By fall, you’ll hit Greenblatt, run a Magic Formula screen, and convince yourself you’ve reverse-engineered Buffett’s brain.
Next year, you’ll be at an obscure value conference in Omaha, pitching a furniture liquidation business with asbestos liabilities and calling it “unloved but cash rich.”
You’ll use terms like “mispriced optionality” to describe a company that hasn’t turned a profit since 1998.
You haven’t even begun to suffer yet.
You haven’t held a 0.4x book stock that got delisted to the Expert Market and now trades by appointment only.
You haven’t emailed IR five times with no response and still doubled your position out of spite.
You haven’t stared at a balance sheet so long you start dreaming in GAAP.
You think this is about numbers.
It’s not.
It’s about pain tolerance.
Come back when you’ve held garbage for five years, been diluted twice, and still called it a win.
Then we’ll talk deep value.
Lee Roach retweeted
I am scaling the abortion clinic industry. Right now I have five clinics and I see the ability to scale to 500 clinics and flip it to PE in 2-3 years.
Crazy margins and great recurring revenue business. Basically recession proof.
The amendment also now allows the Company to sell Clean Earth and provides a capital structure framework for the surviving company if this occurs
$NVRI
Did not answer the question. Rambled about revenue and EBITDA. All useless metrics for public company investors.
The stock is down because they don’t generate free cash flow, it’s levered to the gills, shareholders have been diluted to infinity, nasty convertible debt, businesses that are getting smoked by AI, overpaying for acquisitions, related party fees, etc.
I could go on and on. I’ve read all of $TINY.V financials and also read his book. I still struggle to see what makes these wonderful businesses. It’s not great.
.@ShaanVP asks @awilkinson the question that's been on everyone's mind. Why is the TINY stock down so much?
Here's what he had to say:
Who cares? In some states, a mortgage is non-recourse, you can walk away and the bank takes the hit.
If you don’t lose the house and asset prices keep rising, 95% debt to equity turns into a wealth amplifier, not a risk.
And if you do lose your income for good? You’re losing the house either way, leverage or not.
All these people have the absolute worst takes on debt.
The longer the term, especially if it’s fixed, is such a powerful asset in an inflationary environment.
I’ve seen some of the best companies in the world have 2-3% fixed debt for 50-years. It’s cheap capital and lowers your cost of capital.
Think of a 50-year mortgage as the same. Stop babbling about interest paid, blah blah blah.
Lever up and let inflation wipe out the debt.
A 30-year fixed mortgage is basically a long-dated call option on inflation.
You borrow dollars today, lock the rate, and repay in nominal terms.
If inflation explodes, your debt evaporates in real terms while your house price soars.
You’re long the house, short the dollar.
Lee Roach retweeted
Our team is legit.. Love seeing the recognition, but honestly feels like we’re just getting started 🚀
From $SSP call:
We are absolutely committed to doing the work necessary to unlock massive shareholder value.
$GTN says record EBITDA coming over the next 12-24 months.
Driven by massive political spending in 2026, acquisition and then huge political spend in 2028.
Those debt to EBITDA ratios are going to be driven down.
$SSP up 35% as investors realize these are tech companies but with bad balance sheets.
Typical deep value investor
Florida Man arrested for chasing Walmart customers around with fresh turd.
A Florida Man was arrested this afternoon for chasing innocent customers around with a fresh turd he found in the toilet.
According to reports the Florida Man broke into the women's bathroom screaming like a mad man.
He then searched every stall until he found a fresh one.
Once he got the fresh turd he ran out of the bathroom and started waving it around like it was a wand from Harry Potter.
He then began chasing customers with the fresh turd.
The Florida man is being held in police custody.
