Sunday, May 1

Private Value Greater Than Current Market Price Attracts Activist

Perceptron, Inc. (PRCP), develop and sells automated industrial measuring products and solutions in the Americas, Europe, and Asia. It offers 3D machine vision solutions, robot guidance, coordinate measuring machines, and laser scanning.

The manufacturing industry use Perceptron's products for dimensional gauging, inspection and 3D scanning.  Further, it offers value added services consisting of training, field services, calibration, launch support services, consulting services, equipment,software maintenance agreements and repairs. Their largest end use market is the automotive industry. Perceptron has 346 employees, founded in 1981 and headquartered in Michigan.

Perceptron continues to struggle, I believe more than accounted for in its negative stock returns potentially creating an investable opportunity.

In 2013, Perception set a new strategic direction. One is to sustain its auto sector leadership. Additionally , new small acquisitions include the Coord3 and the Next Metrology providing important revenue diversification. More importantly than revenue diversification is an immediate focus on profitability and cash flow.

During the Q2 2016 conference call CEO stated revenue and profitability for the prior six months were short of expectations, but "that said elements supporting Perceptron's long-term potential can be seen in the results. Bookings were a record for second quarter. Backlog is about $40 million for only the fourth time in our history.On an optimistic note bookings were a record for second quarter. Backlog is about $40 million for only the fourth time in our history." Negative foreign exchange translation has been a head wind. dragging down results.

"The board remains confident that Perceptron will be able to achieve double-digit revenue growth over the longer term while also improving profitability and cash flow."CEO

The low market price, horrific stock returns continue to attract value investors.MOAB CAPITAL PARTNERS has taken a activist 13D position adding more share, 213,028 shares from their 13D filed 3/15/16 to 4/19/16.

See table below for other value institutions, Royce, Ariel, Kennedy Capital, and others.

Price per share on 04/29/16 = $4.61
Market Cap: 43.10M , Enterprise Value:    34.62M
Price/Sales (ttm): 0.61 , Price/Book (mrq):  0.78
Revenue (ttm):  71.90M ,Qtrly Revenue Growth (yoy):  -27.00%
Gross Profit (ttm):  28.27M versus Enterprise value of 34.62M
Total Cash (mrq):  8.68M,  Total Cash Per Share (mrq): 0.93
Current Ratio (mrq):  2.01 , Book Value Per Share (mrq):   6.05
52-Week Change:  -62.12%
52-Week High:    12.70 , 52-Week Low:    4.54
% Held by Insiders:    4.51% , % Held by Institutions:    68.90%

Note the valuation improvements for P/B, EV/Revenue, 63% drop in market cap from 2014,


Thursday, April 28

Value Ignored

After additional research as with all stocks accumulate patiently and wait.

Crimson Wine Group, Ltd. (CWGL) "together with its subsidiaries produces & markets wines. It has vineyards in the Napa Valley, Edna Valley in California, Sonoma County, the Willamette Valley in Oregon & Horse Heaven Hills in Washington." Morningstar

Crimson is a stock if after additional research accumulate patiently and wait.

Relatively small insider buying for the week ending 04/22/15.Strong value institutional ownership from Michael Price, Tenton Mighty Mites, Gamco, Perritt.Price reported adding shares at higher market price for the quarter ending 12/31/15

Positives: Diverse group of successful micro cap value institutions purchasing shares greater than current market price. Positive insider buying during 2016 and 2015.High Piotroski F Score of 7.
Revenue per share growth, 5 year annual per share revenue growth rate 18.80%, one year 4.90%.
Per share value improvements for metrics in table below, EBIT, BV, EBITDA.



Gross margins out performing its relative and historical returns, 2010 = 38.48%, 2012 = 49.39%,TTM = 53.25%.
Stable share count 2011 24.46M shares outstanding TTM = 24.23M

Financially sound based on Z score, Sloan and Bennish ratio.
Insider ownership is 31.20%


Market Cap: 208.38M ,Enterprise Value:     182.02M
Price/Sales (ttm):      3.45 , Price/Book (mrq):       1.01
Enterprise Value/Revenue (ttm):        3.02 , Enterprise Value/EBITDA (ttm): 11.87
Profit Margin (ttm):    6.91% , Operating Margin (ttm): 13.22%
Revenue (ttm):  60.23M
Gross Profit (ttm):     32.53M , EBITDA (ttm):  15.34M
Total Cash (mrq):       27.64M , Total Cash Per Share (mrq):     1.13
Total Debt (mrq):       0.00
Current Ratio (mrq):    6.60 , Book Value Per Share (mrq):     8.43
Operating Cash Flow (ttm):      7.74M
52-Week Change3:        -7.03%
52-Week High (May 8, 2015)3:    9.80 , 52-Week Low (Feb 17, 2016)3:    7.58
Shares Outstanding:    24.23M , Float:  19.69M
% Held by Insiders:    31.12% , % Held by Institutions1:        20.20%


Spark Networks, Inc. (LOV)   owns and operates online dating platforms,,,
Market Price $2.29 on 04/28/16

Market Cap: 59.19M , Enterprise Value:  44.90M
Price/Sales (ttm):   1.15 , Price/Book (mrq):  3.22Enterprise Value/Revenue:   0.87 ,Enterprise Value/EBITDA: 5.00Profit Margin (ttm):    7.11% ,Operating Margin (ttm): 13.24%
Return on Assets (ttm): 13.79% ,Return on Equity (ttm): 25.27%
Revenue (ttm):  51.69M , Revenue Per Share (ttm):   2.08
Qtrly Revenue Growth (yoy):  -22.20%
Gross Profit (ttm):     24.06M , EBITDA (ttm):  8.99M
Total Cash (mrq):       14.44M , Total Cash Per Share (mrq):     0.56
Total Debt (mrq):       0.00
Current Ratio (mrq):    1.29 , Book Value Per Share (mrq):     0.72
Operating Cash Flow (ttm):     5.83M , Levered Free Cash Flow (ttm):   4.30M
52-Week Change:   -42.17%
52-Week High (May 1, 2015):    5.10 ,
52-Week Low (Apr 18, 2016):    2.09
Shares Outstanding:    25.85M , Float:  11.54M
% Held by Insiders:    23.57%
, % Held by Institutions:   47.90%
Short % of Float :2.76%

Tuesday, March 1

Insider Micro Cap Buying for the 2 Day ending 03/01/16

Click for quotes on the stock below

Insider Micro Cap Buying for the 2 Day ending 03/01/16
symbol Industry Buyers Title Shares Purchased Purchase Price $ Amount Purchased Market Price 03/01/16 Market Cap ($Mil) Enterprise Value ($Mil) F Score 52 week Price Change EV / Revenue EV / EBITDA P/B Financial Strength Insider Ownership Z Score Short % of Float Revenue Growth Rate 1 Year
ACWAuto Parts10% Ownership241,728$1.17 278,109$1.45 69.54352.4466-
BOOTApparel Stores10% Ownership742$9.25 6,864$9.93 261.65476.0540-59.650.9110.641.654.201.6528.1713.6
BRSOil & Gas Equipment & Services10% Ownership1,750$13.90 24,325$15.74 550.151,649.252-72.830.929.70.356.111.315.94-1.7
CRROil & Gas Equipment & Services10% Ownership38,000$19.10 727,150$19.67 458.04455.3393-45.21.6300.716.87172.7440.6-39.5
ESIOSemiconductors10% Ownership1,845$7.05 13,007$7.21 224.43164.20344.340.9601.349.3773.132.29.1
JAKKLeisure10% Ownership45,000$6.81 304,950$7.44 166.42325.68911.710.444.51.16.77112.2945.298.3
JAKKLeisureCEO, President5,000$6.94 34,700$7.44 166.42325.68911.710.444.51.16.77112.2945.298.3
LOVInternet Content & Information10% Ownership3,139$3.20 10,045$3.29 84.5270.0788-8.361.3612.674.588.23202.762.75-23.5
SCSSHome Furnishings & FixturesSVP & CFO1,500$17.32 25,980$18.00 911.62805.7168-43.930.665.764.139.3365.697.2437.2
STLYHome Furnishings & Fixtures10% Ownership669,232$2.51 1,673,885$2.51 37.9231.4167-24.620.5522.840.778.393.910.1-7.5
STONPersonal Services10% Ownership188$26.48 4,978$26.45 840.551,129.0842.693.7674.664.115.5320.581.65-8.8