Wednesday, February 10

Insider Micro Cap Purchases for the One Day Ending 02/10/16

Click quotes on all stocks below;

BKS:  Barnes & Noble, Inc.      COVS:  Covisint Corporation     GSIT:  GSI Technology Inc.      HUBG:  Hub Group Inc. MDP:  Meredith Corporation      RELV:  Reliv' International, Inc.
 TGI:  Triumph Group, Inc.       TMHC:  Taylor Morrison Home Corporation
 TWIN:  Twin Disc, Incorporated  UPLD:  Upland Software, Inc.    YUME:  YuMe, Inc.

Monday, February 8

Speculative: Below Net Cash, Talented Management, Positive Insider And Guru Value Ownership

this post is a continued update of yesterday's post "Value Ideas Posting Negative Returns after Value Guru Purchases"

Kindred Biosciences, Inc. (KIN): is a speculative development-stage biopharmaceutical company (no reported revenues as of 02/08/16) focused on saving and improving the lives of pets.  KIN has a pipeline of products for dogs and cats in development. They have multiple additional undisclosed products under development.

hard Chin, MD
Founder and Chief Executive Officer

The stock trades at a negative enterprise value (-16.43M), cash per share $4.22, BV per share 4.13 versus a market price of $3.34.

Market Cap: 66.36M , Enterprise Value : -16.43M
Total Cash (mrq):  83.59M , Total Cash Per Share (mrq):   4.22
Total Debt (mrq):    0.00
Current Ratio (mrq):  28.27 , Book Value Per Share (mrq):  4.13
52-Week Change:   -48.71%
Shares Outstanding:   19.81M , Float:  11.36M
% Held by Insiders:    15.97% ,% Held by Institutions:        60.90%
Short % of Float (as of Jan 15, 2016): 1.43%

Talented management team and founders for such a small company.
Founder and executive CEO Richard Chin is a Harvard-trained physician and a former Rhodes Scholar with a track record of a dozen drug approvals and over 50 INDs. Drugs Richard developed, including Lucentis®, Xolair®, Tysabri®, and Rituxan® for immune diseases, have current sales of well over $10 billion per year.

Prior, Mr Chin was Head of Clinical Research for the Biotherapeutics Unit at Genentech. He oversaw Genentech's drug development programs except oncology products; Senior VP of Global Development at Elan; CEO of Oxigene, a NASDAQ-listed biotechnology company; and CEO of OneWorld Health, a Gates Foundation-funded nonprofit developing drugs for impoverished patients in developing countries.  BusinessWeek named Mr Chin in 2006 as one of 99 youngest public company CEOs in the United States. He authored several major textbooks on clinical development and teaches drug development at UCSF.

Stephen Sundlof, DVM, PhD is the  Chief Scientific Officer and Executive Vice President of Regulatory Affairs and Quality.
Mr  Sundlof served as the Director of the Center for Veterinary Medicine at the FDA from 1994 to 2008. He oversaw  veterinary products regulated by the FDA. Further, He served as the Director of Center for Food Safety and Applied Nutrition at the FDA from 2008 to 2010. Steve began his career in 1980 on the faculty of the University of Florida's College of Veterinary Medicine. In 1994, FDA Commissioner David Kessler named him the CVM director.

Denise Bevers, Founder and Chief Operating Officer" is an expert in clinical operations, medical affairs, and scientific communications. Ms. Bevers has over 20 years of pharmaceutical and research experience, and has managed dozens of products and development programs from Phase I through Phase IV. She was previously at Elan Pharmaceuticals, Scripps Clinic and Research Foundation, Quintiles, and SkyePharma. Most recently, she was President and Founding Partner of SD Scientific, a full-service medical affairs and communications company". Source Corporate Website

Strong board of directors,
Ernest Mario, PhD served as the CEO of Glaxo (world's second largest drug company) from 1989 to 1993. Chairman and CEO of ALZA Corporation acquired by Johnson & Johnson for $10.5 Billion in 2001. Chairman and CEO of Reliant Pharmaceuticals, which was acquired by  GlaxoSmithKline. Ervin Veszprémi served as the Vice President and Global Head of Marketing at Novartis Animal Health, one of the largest veterinary companies in the world. 30 years of experience in the pharmaceutical industry, including 15 in the animal health sector. Raymond Townsend formerly the Worldwide Director and Vice President, Outcomes, Epidemiology and Policy Research at Glaxo. He also served as Senior Vice President, Pharmacoeconomic and Epidemiology Outcomes Research, at Elan Pharmaceuticals.

Value institution purchasing shares at higher prices;  BAUPOST GROUP (Seth Klarman) holds 15.21% of the shares outstanding.  ARIEL INVESTMENTS (John Rogers) 8.84% of shares outstanding.

Positive insider activity 2015 and prior years.


Institutional Value Firms with Recent and Historical Activity:  Taken from

Institutional Value Firms with Recent and Historical Activity:  Taken from

Kindred Biosciences, Inc. (KIN) is speculative. But it's trading below net cash value with a talented proven management team and board. Coupled with positive insider activity and proven value institutional ownership purchasing at higher than current market price.

Sunday, February 7

Value Ideas Posting Negative Returns after Value Guru Purchases

creating potential opportunities.

This post will be finished over the next few days. Started by listing ideas meeting the criteria.

Click for quotes on all stocks

Company Symbol Industry Price  52 High 52 Week Low 12 Week Price Change MC EV Value Institutions Holding Shares Adding Shares During the Most Recent Reported Qtr
Kindred Biosciences, Inc.  KIN Biotechnology $3.39 $7.91 $2.90 -36.40% 67.15M -16.43M BAUPOST GROUP (15.21%), Ariel(8.84%) John Rogers(Ariel)
Columbus McKinnon Corporation  CMCO Farm & Construction Equipment $13.71 $27.66 $12.62 -26.90% 275.67M 505.88M PZENA INVESTMENT (7.56%), ROYCE  (3.68%), RUTABAGA  (2.25%), PRICE MICHAEL (.39%)  Richard Pzena, Michael Price
Perceptron, Inc.  PRCP Scientific & Technical Instruments $6.19 $14.21 $6.15 -21.15% 58.01M 44.13M ARIEL (15.97%),   ROYCE  (9.80%) Royce, Rogers
Fuel Systems Solutions, Inc.  FSYS Auto Parts $4.03 $11.57 $3.06 -37.13% 72.92M 11.97M Royce (6.50%) Royce
Capella Education Co.  CPLA Education & Training Services $45.23 $39.06 $72.47 .37% 539.41M 412.67M Royce (4.61%), MAKAIRA (4.99%), GOTHAM (1.1%) Royce,James Barrow, 
Heritage-Crystal Clean, Inc  HCCI Pollution & Treatment Controls $8.18 $16.11 $8.11 -29.18% 182.55M 235.70M Royce (4.77%), COVE STREET ,Ganon (.52%) Royce
Haverty Furniture Companies Inc.  HVT Home Improvement Stores $17.93 $26.00 $17.68 -24.66% 397.22M 371.06M Royce (7.40% Royce, NWQ Managers
Tejon Ranch Co.  TRC Real Estate - General $18.81 $28.00 $17.58 -21.59% 389.01M 438.83M Third Ave  (11.09%),TOWERVIEW (13.30%), M Price (2.51%), Teton, Gabelli  
ARC Document Solutions, Inc.  ARC Business Services $3.46 $9.81 $3.17 -31.35% 162.59M 322.19M PZENA (8.13%) PZENA, Inc.  CRCM Internet Content & Information $5.04 $8.24 $4.89 -15.86% 162.16M 102.42M Royce (5.18%) Royce
Kennametal Inc.  KMT Tools & Accessories $19.01 $39.91 $15.51 -33.14% 1.51B 2.09B Ariel (12.07%), Royce (3.62%), GOTHAM  (2.13%) Gabelli, Rogers

Click for quotes on above stocks

Wednesday, February 3

Positive Value Based Insider Micro Cap Buying for the One Day Ending 02/03/16

Click for quotes on  all stocks ; DWCH,DDE,KEM,SHLM,TWMC,USAP

Datawatch Corporation (DWCH) 

Dover Downs Gaming Entertainment Inc. (DDE)



A. Schulman, Inc. (SHLM)


Trans World Entertainment Corporation (TWMC)

Universal Stainless Alloy Products Inc. (USAP)

Tuesday, February 2

Oversold Deep Value Niche Candidate

Bristow Group, Inc. (BRS) :“is a provider of helicopter services to the offshore energy industry based on the number of aircraft operated and one of two helicopter service providers to the offshore energy industry with global operations.” Morningstar

Positives: Mean reversion candidate down -65.23% over prior 52 weeks; share price depressed due to the obvious (cost to recover fuel offshore);  founded 1955 the long term outlook for oil likely to revert to higher,  niche market with little competition, access to expanding emerging markets, share count reduced over TTM, shares outstanding 8 quarters prior was 36.40M reduced to the current quarter balance of 34.92M.

Materially improved valuation for revenue and book value. EV/Rev TTM = .88 versus the average EV/Rev from 2013 to 2015 at 1.80.  P/TB TTM = .47 versus average P/TB from 2013 to 2015 at P/TB=1.45
Trailing Annual Dividend Yield:  5.70%

Insider Buying

Aggressive share purchases at higher prices by micro cap deep value investors John Rogers(Areil), John Buckingham, and CALEDONIA INVESTMENTS

Negatives: growing long term debt, poor track record of buying back shares, high short position as a percentage of float at 15.46%; uncertain performance in the short / mid term for the Oil and Gas Equipment services ; 5 straight quarters of missed earnings estimates,

Summary of current value:
Market Cap: 703.38M , Enterprise Value: 1.91B
Price/Sales (ttm): 0.48 , Price/Book (mrq): 0.53
Enterprise Value/EBITDA (ttm): 7.28
Qtrly Revenue Growth (yoy): -4.90%
Gross Profit (ttm): 559.11M , EBITDA (ttm): 262.11M

Total Cash (mrq): 139.34M , Total Cash Per Share (mrq): 3.99
Total Debt (mrq): 1.00B , Total Debt/Equity (mrq): 63.60
Current Ratio (mrq): 1.66 , Book Value Per Share (mrq): 44.06
Operating Cash Flow (ttm): 210.32M , Levered Free Cash Flow (ttm): -287.14M
52-Week Change:  -65.23%
52-Week High (Apr 16, 2015) $64.64 , 52-Week Low (Jan 20, 2016): $16.40
% Held by Insiders:    19.80%

Short % of Float (as of Jan 15, 2016): 15.46%
Trailing Annual Dividend Yield:   5.70%

Monday, February 1

Value Based Micro Cap Ideas with Insider Buying for the Day ending 02/01/16

Symbol Company Name
ADK  AdCare Health Systems, Inc.
BID     Sotheby's
CETV Central European Media 
CNMD CONMED Corporation
ICCC ImmuCell Corp.
NOG  Northern Oil and Gas, Inc.
TWOC Trans World Corporation
UPLD Upland Software, Inc.
WLFC   Willis Lease Finance Corp.

Click for quotes on all stocks listed

AdCare Health Systems, Inc. (ADK)

Sotheby's (BID)

CONMED Corporation (CNMD)
ImmuCell Corp. (ICCC)
Northern Oil and Gas, Inc. (NOG)
Trans World Corporation (TWOC)
Upland Software, Inc. (UPLD)
Willis Lease Finance Corp. (WLFC)

Sunday, January 31

Value Ideas Near 52 Week Low With Insider Buying For The Week Ending 01/29/16

Insider buying for value stocks with activity for the week ending 01/29/16   
SymbolCo NameYTD 2016 Shares Purchased Cost of Purchased SharesAvg Price PaidMarket Price 01/22/1652 WK HighP/SEBITDAMarket Cap
BIDSotheby's17,000387,400$22.79$23.49 47.28 1.57 272.52M  1.55B
KROKronos Worldwide, Inc.186,229828,500$4.45$4.7013.850.36 114.4M544.64M
LAWSLawson Products Inc.44,700820,400$18.35$19.3829.640.59 9.39M169.54M
SNAKInventure Foods, Inc.179,685 1,041,000$5.79$5.6212.320.38 12.85M110.20M
SSRGSymmetry Surgical Inc.308,2782,762,600$8.96$8.829.741.12 7.8M91.20M
TWMCTrans World Entertainment Corporation45,491143,700$3.16$ 10.33M101.93M
VISIVolt Information Sciences Inc.16,500131,000$7.94$7.6712.970.11 5.81M159.77M
WAIRWesco Aircraft Holdings, Inc.1,43415,000 $10.46$11.2916.70.72 89.65M1.11B

Click to see yahoo quotes on all stocks

Sotheby's (BID) "is an auctioneer of authenticated fine art, antiques and decorative art, jewelry and collectibles. Its operating segments are agency segment, principal segment and finance segment."

Market Cap: 1.55B , Enterprise Value: 2.18B
Price/Sales (ttm): 1.57 , Price/Book (mrq): 1.95
Enterprise Value/Revenue (ttm): 2.23 , Enterprise Value/EBITDA (ttm): 8.00
Profit Margin (ttm): 13.19% , Operating Margin (ttm): 25.89%
Return on Assets (ttm): 6.36% , Return on Equity (ttm): 15.93%
Revenue (ttm): 976.90M , Revenue Per Share (ttm): 14.19
Qtrly Revenue Growth (yoy): 46.50%Gross Profit (ttm): 774.75M , EBITDA (ttm): 272.52M
Total Cash (mrq): 602.05M, Total Cash Per Share (mrq): 9.01
Total Debt (mrq): 1.21B , Total Debt/Equity (mrq): 154.09
Current Ratio (mrq): 2.84 , Book Value Per Share (mrq): 11.78
Operating Cash Flow (ttm): 197.43M , Levered Free Cash Flow (ttm): 308.05M
52-Week Change: -44.98%52-Week High (Jun 26, 2015): 47.28 , 52-Week Low (Jan 20, 2016): 21.50
Shares Outstanding: 65.79M , Float: 52.59M
Short % of Float: 14.73%
Trailing Annual Dividend Yield: 0.40 , 5 Year Average Dividend Yield: 0.79%

Aggressive Share Buybacks 69.016M to 67.946M over the prior TTM.

Data in above table taken from

Symmetry Surgical Inc. (SSRG);"offers a reusable stainless steel and titanium surgical hand-held instruments & retractor systems, sterile disposable surgical products and sterilization containers." Morningstar

324,419 shares purchased by Value institution LKCM or 3.14% of the shares outstanding. FCF positive ,  YOY revenue increase

Kronos Worldwide, Inc. (KRO):

Market Cap: 544.64M , Enterprise Value : 770.24M
Price/Sales (ttm): 0.36 , Price/Book (mrq): 1.01
Enterprise Value/Revenue (ttm): 0.54 , Enterprise Value/EBITDA (ttm): 6.73
Revenue (ttm): 1.44B , Revenue Per Share (ttm): 12.38
Qtrly Revenue Growth (yoy): -18.90%
Gross Profit (ttm): 349.70M , EBITDA (ttm): 114.40M
Total Cash (mrq): 126.80M , Total Cash Per Share (mrq): 1.09
Total Debt (mrq): 352.40M , Total Debt/Equity (mrq): 69.41
Current Ratio (mrq): 3.82 , Book Value Per Share (mrq): 4.38
Operating Cash Flow (ttm): 111.30M , Levered Free Cash Flow (ttm): 105.82M
52-Week Change: -58.81%
Shares Outstanding: 115.88M , Float: 20.17M
% Held by Insiders: 82.27% , % Held by Institutions: 14.40%
Short % of Float: 20.39%
Trailing Annual Dividend Yield: 13.60% , 5 Year Average Dividend Yield: 4.08%

Further updates on  this post