After attending The Big Dog Conference, a very well put together event, on companies in the microcap market segment, I have decided that there is some longer term value out there in select small deals. Liquidity has had a much larger impact on the global economy in a substantially broader way than certainly I believed it would, or for that matter, everyone else on the planet. When I say broad I am talking about the net effect on capital for small companies regardless of industry. Both equity and debt markets have been equally as effected, especially for the growth oriented companies. There are some really interesting companies out there trading at what could be a ridiculous price point based on the potential of their respective products and services. So is it time for action? A very hearty, but cautious yes!
I have written about many broad scope items in the market like what are the thoughts of private equity funds, why is the market in trouble etc. etc. I now feel it is time to actually make some picks in the micro cap stock arena. Theory is all well and good but it is time to apply the practicality of this theory to something tangible and visceral. So here goes:
– NASDAQ) last trade $1.15 per share. This company has more promise and potential than any company I have seen, certainly in the last 15 years. This company has as much or more underlying potential than Amgen did when it first came to market in the mid 80’s. Without boring my constituency with lots of medical terminology and all the great things the company does, I will summarize it. Bioheart is the ONLY company that has created a way to grow new muscle in the scar tissue of a human heart. What this means is that it can improve the functionality of the heart. They have a management team that in and of itself is worthy of a Fortune 100 company and they have the science to back it up. Over $85 million has been invested and the Founders have done it before. Most of the time it makes more sense to bet on the jockey rather than the horse. In this case both exist.
Second pick is Quantum Fuel Technologies (QTWW Purple Violets release
– NASDAQ) last trade at $.65 per share. This is basically a lay down. Why? The company is in the alternative energy space specifically integrated for vehicles. Quantum has a portfolio of technologies that include electronic controls, hybrid electric drive systems, hydrogen storage and metering systems, as well as alternative fuel technologies that enable fuel efficient, low emission hybrid, plug-in electric hybrid, fuel cell, and alternative fuel vehicles. They have a substantial partner and investor in GM and have collaborated on the new Chevy Volt. They are also the underlying system for the coolest electric hybrid vehicle ever, the Karma made by Fisker Automotive.
My last pick is ID Watchdog Big Stan move , Inc. (IDW.V buy Never Get Outta the Boat
– CNDX) Last trade at $.24 Canadian. (yes I know it is Canadian but their dollar is almost on par with the US dollar.) One of the biggest growth areas in consumer related technology is identity theft. It has grown and continues to grow at a rapid pace. They have a fair amount of cash and a global shareholder base. Their technology is excellent but it is really more of a marketing play as people just now understand the need to have this service. It is not unrealistic to think everyone who has a social security number should also have some form of identity protection. This company is at the right place, at the right time with the right technology.
Here is my strategy when it comes to riskier but more rewarding type of companies. All of these companies are long term holds, not trading stocks. So when I buy these types of companies I have an underlying philosophy: if these stocks double in price I sell half and then I am in the companies for free. If a substantial shift occurs that makes me re-evaluate these companies’ fundamentals or the market then I will let my readers know.
Here they are on my Blog for all to see. Whether I am right or wrong, these are my initial picks, or in essence, dipping my toe back into the investing waters. Now for the disclaimer: the author owns less than 15,000 shares of Bioheart which have an average cost of approximately $1.67 (higher than the current market). The author does not currently own any of the Quantum Fuels or the ID Watchdog companies but I will shortly. I may add to these positions but will not sell them unless a massive issue occurs or they double in price in which case I will sell half. These are not recommendations and should not construed as such they are opinions of the author, any diligence should be completed by each individual and or their respective financial guru.
Good luck to all and I will be updating these companies.Out of the Blue movies Hittin’ It! psp
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