Good morning,
Today August 23 will be my last day as the author of Cabot Micro-Cap Insider.
I’ve enjoyed my time at Cabot; it has been a pleasure to share my highest conviction micro-cap ideas with you!
Before I ride off into the sunset, I want to share my latest thoughts regarding the CMCI recommendations.
I continue to like all 20 open recommendations and own many of them.
Nonetheless, I won’t be covering them on a weekly basis.
As such, I want to provide some guidance on all 20 recommendations.
In my thoughts below, I will share my latest price target and “stop-loss” target. Of course, everyone has a different risk tolerance and selling is a personal decision.
But here’s how you could think about a potential stop-loss target.
If any of my recommendations decline by ~20% from their current price levels, one could sell the shares to minimize losses.
With micro-caps, it is never a good idea to set an “automatic” stop-loss because a “sell” order can trigger more sell orders and create a negative cascade effect. Instead, keep in mind a “mental stop-loss” to monitor.
What do I mean by a “mental stop-loss?”
Let me explain.
Let’s assume a stock is trading at 10.00. My “mental stop-loss” would be 8.00. Once the stock declines to 8.00, I wouldn’t sell all my shares with a “market” order but would rather slowly and methodically sell out of my position with “limit” orders.
Remember – market orders can create large price changes in micro-caps!
OK. With that out of the way, I will go in alphabetical order.
2seventy bio (TSVT) will continue to be volatile given it’s a small-cap biotech. But I still like the risk-reward. Original Write-up.
- Price Target: 30
- Stop-Loss: 4.97
Cogstate Ltd (COGZF) should continue to grow revenue and profits over the next 3-5 years as new Alzheimer’s therapies are approved. Original Write-up.
- Price Target: 2.70
- Stop-Loss: 0.72
Copper Property Trust (CPPTL) is a steady 11% yielder which will pay out additional proceeds as it liquidates. Original Write-up.
- Price Target: 18.00
- Stop-Loss: 8.48
Currency Exchange International (CURN) is a great “growth at a reasonable price” stock. Original Write-up.
- Price Target: 27.50
- Stop-Loss: 15.22
Epsilon Energy (EPSN) is a low-risk way to gain exposure to natural gas. Original Write-up.
- Price Target: 9.00
- Stop-Loss: 4.28
Esquire Financial Holdings (ESQ) is a well-positioned bank in an attractive niche. Original Write-up.
- Price Target: 52.50
- Stop-Loss: 38.45
IDT Corporation (IDT) is a spin-off machine. High-growth subsidiaries will be monetized over time through spin-offs. Original Write-up.
- Price Target: 55.00
- Stop-Loss: 19.49
Kistos PLC (KIST: GB) is a dirt-cheap U.K. energy company with an outstanding management team. Original Write-up.
- Price Target: 10.00
- Stop-Loss: 1.96
Liberated Syndication (LSYN) is a private company which will ultimately provide liquidity for shareholders. Original Write-up.
- Price Target: 6.00
- Stop-Loss: 3.00
M&F Bancorp (MFBP) is a tiny, well-run bank which is benefitting from a windfall driven by the Emergency Capital Investment Program. Original Write-up.
- Price Target: 44.00
- Stop Loss: 13.40
Medexus Pharma (MEDXF) is a high-risk, high-reward Canadian specialty pharma company. Original Write-up.
- Price Target: 6.00
- Stop-Loss: 1.53
Merrimack Pharma (MACK) is special situation which will pay out ~16 per share in milestone payments once Onivyde is approved in first-line pancreatic cancer. Original Write-up.
- Price Target: 16.00
- Stop-Loss: 9.60
P10 Holdings (PX) remains one of my favorite holdings. It is well positioned for strong growth given secular tailwinds in the private equity market yet trades at a reasonable valuation. Original Write-up.
- Price Target: 20.00
- Stop-Loss: 10.08
Park Aerospace (PKE) is a well-positioned aerospace company trading at a cheap valuation. Original Write-up.
- Price Target: 27.50
- Stop-Loss: 11.28
RediShred (RDCPF) is a cheap Canadian company with a dominant position in an attractive niche (paper shredding). Original Write-up.
- Price Target: 6.00
- Stop-Loss: 2.24
Sandridge Energy (SD) is another cheap energy company which is returning cash to shareholders and benefitting from higher energy prices. Original Write-up.
- Price Target: 26.00
- Stop-Loss: 12.88
Trinity Place Holdings (TPHS) is a high risk-reward stock. It could go up 7x but also could go bankrupt given its illiquid NYC real estate holdings. Original Write-up.
- Price Target: 1.00
- Stop-Loss: 0.27
Truxton (TRUX) is a steady Eddie bank based in Nashville, TN. I expect it to continue to compound for many years. Original Write-up.
- Price Target: 111.00
- Stop-Loss: 48.00
Unit Corp (UNTC) is one of my favorite stocks. It is a dirt-cheap energy company that pays a 20% dividend yield. And it will benefit from high energy prices. Original Write-up.
- Price Target: 93.00
- Stop-Loss: 39.08
William Penn (WMPN) is a thrift bank that is buying back stock and likely to get acquired in 2024. Original Write-up.
- Price Target: 17.50
- Stop-Loss: 9.57
If you have any questions, please send them to support@cabotwealth.com and they will get forwarded to me.
It has been a privilege to share my research with you.
Thank you for your support, and best of luck!!
Sincerely,
Rich Howe
