About

I have a 40 year background in accounting and finance at a number of public and private companies in increasingly responsible positions and have been a CFO for the last 20 years. My background in preparing financial statements, reporting to the Securities and Exchange Commission and having been involved in a number of company sales and purchases are invaluable tools in reading and understanding public company financial statements and their valuations.

I have been investing in my own account since 1987 and have attained double digit returns in my accounts. My stock selections have had an 80% success rate and average returns of over 30%. My blog portfolio is up 400% since the end of 2008 and was up 31% and 48% in 2012 and 2013 respectively.

I have developed my own investing methodology which uses a quantitative proprietary screening formula to select investment opportunities. My focus is in the technology and medical sectors. The formula is a proxy for the buy-out valuation of a company and is retested continuously. While not all of my selections end up being bought out, they are usually cash laden companies with the downside limited by the cash position that are generally undiscovered by the investment community.

I started Cheap Stock Investor in the spirit of self discipline and to share my passion for investing. I hope you find the information valuable and inspiring.

info@cheapstockinvestor.com

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2 Comments

  1. I recently became a follower of your blog.

    I try to find under followed micro caps and spend a lot of time researching.

    Iteris (ITI) Dynasil (DYSL) Ari Networks (ARIS) are my largest long term holdings.

    What attracts me to your blog is your CFO experience.

    As you look for new opportunities, perhaps you could review the progress being made by ITI and DYSL.

    Perhaps you can revisit ARIS too. You mentioned their poor capital structure but they do seem to have very reliable recurring revenues and in a recent SEC filing Park City Capital mentions the value could be $8 a share based on comparable sales of similar companies.

    RMGN is a possible turnaround but I am more limited than you in my ability to evaluate the numbers.

    So I offer these so that perhaps they might be interesting to you also.

    I look forward to following your blog.

    Thank you,
    James

    • Hi James,
      I also own ITI at $1.79. I have followed it for about 5 years. My valuation on it is $3.41 a share-the valuation was about $2.90 when I bought it. I like their business and their foray into AG. I think they are an ideal candidate to be bought out.
      DYSL on the other hand has a valuation of $2.95-at the current stock price it is not trading at a big enough discount to value for us to be interested.
      RMGN’s valuation is $2.74, so at $.76 it looks interesting. While the discount to value is huge, RMGN is also losing a lot of money and cash each quarter. This could be interesting, but we would want to see them closer to breakeven before buying in and getting cash flow positive. At their current cash burn rate–they could end up in trouble.

      Thanks for the questions.

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