May 5, 2008
Worth reading:
DISCLOSURE: No positions.
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Mar 7, 2008
A few items:
- BAB Holdings (BABB.OB) announced another $.02 quarterly dividend. Shares have recently traded in a price range of $.85-$.95. Though the trading is thin, the yield is fat. Just counting the regular dividends — not last quarter’s special dividend — BAB Holdings gives shareholders $.08 per year. At the bottom end of BAB’s price range, that amounts to a 9.4% yield, and at the top end, an 8.4% yield. Not too shabby!
- I’m still long the junior/mid-tier gold miner field bet posted Feb. 20. So far, the results are mixed: Gold Fields [[GFI]] is up about 10.6% since then, and Gammon Resources [[GRS]] is up a solid 26.4%. On the flip side, Golden Star Resources [[GSS]] is down 3.2% and U.S. Gold [[UXG]] is down 2.6%. My takeaway? The disparate results show the need to play this one as a field bet. That’s why when I decided to increase the bet yesterday, I added another stock, Tan Range Exploration [[TRE]], instead of adding to existing positions. Next add will probably be Western Goldfields [[WGW]]. The stocks still don’t reflect the recent rally in the underlying metal, or potential earnings power. As long as gold holds $900 over the next three months, I expect a slingshot move in the juniors and mid-miners.
- Microcap nursing-home stock Advocat, Inc. [[AVCA]] reports earnings next Wednesday. Though the stock is under pressure on light volume this week, I like it at these levels and may boost my holdings in advance of the quarterly report.
- Littlefield (LTFD.OB), the bingo hall operator frequently mentioned here as a play on aging baby boomers, was a little light on earnings. I’m out of the stock and have no plans to reenter until financial results improve.
- China 3C Group (CHCG.OB) continues to hit new lows, though it reaffirmed fiscal 2007 earnings projections of $.43 to $.47. At today’s price of $2.23, I think that the Chinese electronics retailer offers a pretty good risk/reward in front of the 2008 Olympics. I’m a buyer.
DISCLOSURE: Long BABB.OB, GRS, UXG, GFI, TRE, AVCA, CHCG.OB. No position in WGW (yet) or LTFD.OB.
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Jul 25, 2007
After the bell, Littlefield Corp: LTFD.OB posted second quarter earnings of $.034/share, slightly higher than Q1 but lower than last year’s $.057, on strong revenues of $3,668,170. The earnings shortfall was caused by a 64% increase in overhead, consisting of additional staff, increases in compensation, and other corporate expenses, as well as increased interest costs due to the company’s legal settlements.
CEO Jeffrey Minsch said “Overall, our second quarter performance was the highest second quarter level of revenue and gross profit in the past five years. We saw continuing substantial gross profit increases in every Entertainment business unit - Texas, South Carolina and Alabama bingo. Each of these posted double digit increases in gross profit. This is a very good performance!”
As a shareholder, I don’t share Minsch’s enthusiasm about this quarter’s results. There were some bright spots, but overall it could have (and should have) been better. I’m specifically disappointed by the continued litigation expenses, which were actually up about 90% year-over-year, despite settling most outstanding litigation in the interim. Those costs should be declining.
Bottom line: the quarter was OK but not great. Shares may retreat a bit over the next week, but I didn’t see anything here that should cause lasting damage.
DISCLOSURE: long LTFD.OB.
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Jun 30, 2007
A few interesting microcap charts:
Mouse over image for controls.
DISCLOSURE: I am long ETLT.OB, PTG, HIHO, UXG, GSS, WGDF.OB, GLDS.OB, and LTFD.OB. I have no position in AVCA, CXTI.OB,or PTSC.OB. Not a recommendation to buy or sell any security. For informational and educational purposes only.
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