Nanocaps are stocks with a market cap less than $50M. (To be honest, I used to think that the correct term was microcap.)
There are two main reasons:
No news on the Titanic sale adds some validation to my thesis that the Titanic auction failed and that the assets aren’t going to sell for anywhere near $190M (see all my posts about PRXI). As the valuation of Premier depends almost entirely on the value of the Titanic artifacts, this stock may plummet when investors realize that the Titanic artifacts can’t be sold for much.
I would consider Altius Minerals to have the best management team in the resource sector. Currently, this company is trading below what its assets are worth and is buying back shares.
Contango recently announced a merger with Crimson Exploration. It’s crazy. I think that the late Ken Peak chose the wrong person to be Contango’s CEO.
Need to free up cash for other ideas. I think that other stocks are a much better idea than Intel right now.
Liberty Media is John Malone’s flagship. Of all of Malone’s companies, I am interested in Media the most since:
Liberty Media is difficult to understand. Historically, John Malone has used complexity as a weapon against institutional investors to mislead them into selling stock at too low a price. Malone’s complex Liberty companies have always tended to trade at a discount to what its assets are worth. This allows Malone to continually buy back shares at low prices (this is like free money). A secondary effect of this is that size becomes less of an anchor on future performance. Historically, you would have done the best if you had stuck to buying the most complex part of Malone’s empire that he owns the most of. He keeps the best businesses hidden in his flapship and spins off the mature businesses (e.g. Global’s cable assets), the slow-growing ones, and the not-so-great businesses (e.g. production companies/Ascent). So, I would expect that his flagship company (Liberty Media) will grow faster than the rest of his empire.
This is a great business at a good price.
I’m excited about this company and this seems to be a stock that many people simply gloss over. This is a fantastic business trading at a good price. And it’s a financial company that you can actually understand. They aren’t an investment bank with a book full of opaque derivatives. They aren’t sitting on tail risk from bad insurance deals. And they aren’t sitting on hidden losses from bad loans. They do mortgage servicing and they’re really good at it.
