SNCR saved my butt from this being my worst year in 16 years. Now it is only my 4th worst!

Value stocks have been out of favor for 4 years now. I just can’t buy a Palantir at 100 times revenue and 180 times earnings, or many of the other wildly priced stocks out there. PE’s have expanded at least 100% over the last few years. Not sure why, other than inflation and too many lemmings chasing the same stocks cause ‘they are gonna go up”.

SBH is up over 50% and I am long gone on this one. NEXN and PERI are still hanging in there even though they are both trading at less then 10X earnings and both have a ton of cash. EDAP has a small bump on Friday on no news. IRIX is still doing nothing as is ARAY. Small medical device stocks have been shunned the last 3 years or so. Valuations of 3-5X revenues are history. 1 or 2X revenues seem to be the new norm.

I recently bought OMI and DHX (again). OMI is selling its distribution business and is forecast to make just over $1 a share and is trading at $3, up from $2.50 where I bought it. I think it could be worth north of $10 next year. DHX is profitable and trading around $1.60, I think $3-$4 is doable after we get past tax loss selling and have a decent Q4.

See you in 2026.

SNCR got bought today for $9.00! I still lost about 4% on it, but way better than the 55% I was down a few weeks ago. I would still call this a “take-under”. Last year it was $15. It is my first buy out since January 2022, but still way under the average of 4 buy-outs a year I had before that. Will wonders never cease.