When NIBE Industrier acquired WaterFurnace Renewable Energy a few weeks ago, we started searching for another attractively priced small cap stock in the renewable energy area. Although we made a 50% gain with WaterFurnace, we believe we’ll do better with this one.
Our quest led to EuroSite Power Inc. (EUSP – $0.45), an on-site utility Company, which engages in the ownership, operation, and distribution of on-site energy systems in the United Kingdom and Europe.
Its systems supply electricity, heat, hot water, and cooling solutions to properties, such as healthcare facilities, hotels, multi-family housing facilities, leisure centers, schools, and colleges. The Company was founded in 2010 and is headquartered in Waltham, Massachusetts. American DG Energy Inc. (ADGE – $0.99) owns 70.7% of EuroSite’s outstanding shares.
EuroSite Power has developed an innovative financial solution that provides significant economic and operational benefits to organizations in both the public and private sectors. It basically installs, pays, owns, operates and maintains highly efficient low carbon technologies such as Combined Heat and Power (CHP) or natural gas fuelled air source heat pumps or chillers. The Company assumes all operating risk and even pays for [click to continue…]
When I’m asked why I bother to research all these small cap stocks, when instead I can simply let a fund manager handle my money, I laugh, take out my tablet and show a few graphs similar to the one above.
THAT’s why I, and all other stock pickers in the world, do it, because we get a higher return than a fund manager. Sure the fund manager will do his best to get you a high return, but remember that (s)he’s there in the first place to make a living, not to make your rich. Nobody cares about your money the way you do!
And if you take the time to analyze stocks, it’s best to focus on small caps because research shows they yield the highest returns over time. In addition, the income statements and balance sheets are much easier to understand and in many cases you’re even able to speak with the company’s top management. Try getting a hold of a Fortune 500 CEO.
Remember that new ideas, companies and industries are often born [click to continue…]
At first glance Wireless Telecom Group (WTT – $2.45) announced weak second quarter 2014 results, but when you dig a little deeper…
Wireless Telecom Group, a New Jersey corporation, designs and manufactures radio frequency and microwave-based products for wireless and advanced communications industries and currently markets its products and services worldwide under the Boonton, Microlab and Noisecom brands.
Noisecom is a global provider of electronic noise generation equipment and noise sources in the commercial and military telecommunications fields. Utilized for accurate, reliable measurements, users look to Noisecom for specialized assistance with their equipment design.
Boonton Electronics, is a leader in [click to continue…]
Acme United (ACU – $16.83) received a $400,000 Building Reuse Grant in the form of a promissory note that gradually will be forgiven as the Company hires more people at its Rocky Mount, NC warehouse.
When Acme’s management was in negotiations to purchase the Rocky Mount facility, in the summer of 2013, if found out about the possibility of a grant from Edgecombe County and the North Carolina Department of Commerce based on job creation. The Company applied for the grant, and now received it.
We heard that when a company receives such a grant, it doesn’t have to return $10,000 of the promissory note it received for every full-time job it creates. So for every person that Acme hires at Rocky Mount, it can recognize an income of $10,000, with a maximum of $400,000, which equals 40 full-time employees.
Late August 2013, Acme United purchased a 340,000 square feet manufacturing and distribution center in Rocky Mount, North Carolina. The facility was acquired for [click to continue…]
This week we have an exciting update on Goldsource Mines (GXS) and financing news about Ironclad Performance Wear (ICPW) and Global Minerals (CTG).
Goldsource Mines (GXS – $0.255) was granted a Medium Scale Mining Permit by the Guyana Geology and Mines Commission for its Eagle Mountain gold deposit in Guyana. The permit grants permission to mine gold, diamonds, precious metals and precious minerals within a 250 hectare portion of its 5,050 hectare Eagle Mountain prospecting license. The project is now fully permitted for mining activities and ready for construction financing and subsequent Phase One development.
Because a medium scale mining permit is required under Guyana law to be held by a Guyanese national, Goldsource entered into an agreement with Kilroy Mining Inc, a private arm’s length Guyanese company.
This makes Kilroy the actual holder of the permit, but Goldsource will obviously conduct all mining operations on the property and will also fund all expenditures. In return, Kilroy will receive [click to continue…]
Earnings season is in full swing, so we’re discussing interesting quarterly results from Noble Roman’s (NROM) and Enterprise Group (E). In addition, we have an update on the acquisition of WaterFurnace (WFI).
Noble Roman’s, Inc. (NROM – $1.70), the franchisor and licensor of Noble Roman’s Pizza and Tuscano’s Italian Style Subs, continues to benefit from growth in its three primary venues, which are non-traditional franchises/licenses other than grocery stores, the sale of take-n-bake pizzas through grocery deli departments and stand-alone take-n-bake franchised locations.
Sales for the second quarter ended June 30, 2014 were $2.09 million, compared to $1.99 million in the comparable period of 2013, an increase of 5%. The increase was mainly due to a significant rise in royalties and fees from stand-alone take-n-bake locations, which were $221,000 for the second quarter of 2014 compared with $53,000 in same period last year. Net income was $503,000, or $.03 per share, for the quarter ended June 30, 2014, compared to [click to continue…]
Acme United (ACU – $16.72) reported record sales and earnings in its second quarter thanks to significant internal growth and a nice contribution from First Aid Only, the new first aid brand, which was acquired in June.
Next to the addition of First Aid Only, Acme also launched an entire line of fishing knives and tools in the second quarter under the new brand Cuda. About 30 tools, specifically designed for rigorous inshore, offshore and freshwater fishing, were shown to the public for the first time at ICAST. Similar to what Camillus did with Les Stroud, Cuda partnered with six professional fishermen who will use the Cuda tools on their popular TV shows. The tools are expected to be in stores in the fourth quarter.
Walter C. Johnsen, Acme United’s Chairman and CEO, noted that the third quarter already looks good thanks to First Aid Only and a strong order flow from the other brands. Moreover, many products are in the pipeline and positive results are expected from [click to continue…]