We search out underfollowed U.S. small and
micro cap public equities with the goal of highlighting interesting investment opportunities.
These stocks cover many investment styles and are full of potential alpha for investors willing to dig.
Coverage List
(Alphabetical, PDF Initiation Reports)
Below are descriptions of the companies we follow. For institutional or accredited investors that would like to be added to our distribution base to receive new initiation reports and updates, please click the button to the right.
The Joint Chiropractic (JYNT)
The Joint Chiropractic is an approximately $80 million market cap chiropractic specialty retail concept with 389 locations in 30 states. After some turmoil during a high-growth post IPO stage, new management is controlling costs and has the company back on a solid growth track.
Build A Bear Workshop (BBW)
Build a Bear Workshop is an approximately $110 million market cap "experiential" specialty retail concept selling teddy bears and stuffed animals with 353 company-owned locations in N.A., E.U. and China and 90 franchise locations in 11 countries. The company is focusing on unit profitability and is making positive moves to counter the negative mall traffic trends.
Good Times Restaurants (GTIM)
Good Times Restaurants is an approximately $31 million market cap company that owns and operates both the Good Times Burgers and Frozen Custard and the Bad Daddy's Bar and Grill concepts. After taking a large hit on Colorado minimum wage law changes, the company looks to continue both topline and adj. EBITDA growth with Bad Daddy's unit growth in new markets. Valuation is compelling.
Big Five Sporting
Goods (BGFV)
Big Five Sporting Goods is an approximately $160 million market cap company that owns and operates 432 sporting goods stores in twelve Western United States. Current extreme valuation, huge short interest, high current dividend and a share buyback all make this an attractive stock at these levels.
Sportsman's Warehouse (SPWH)
Sportsman's Warehouse is a $212 million market cap company that has 86 outdoor sporting goods stores across 22 states including large exposure to the West Coast and some exposure in the Southeast. The company is heading in to much easier gun & ammo sales comps, has slowed unit growth to pay down debt levels (at 2.78 times EBITDA now) and trades at just over 5.5 * EV/EBITDA. A huge short position adds to the rebound potential of this equity.
Peak Resorts (SKIS)
Peak Resorts is an approximately $73 million market cap company with 14 owned and managed ski resorts in the Midwest and Northeast. A recent acquisition coupled with multiple internal growth projects that are recently completed and in the works bode well for future EBITDA potential. Trading at attractive EV/EBITDA multiples with a strong yield, the stock is worth time.
Diversified Restaurant Holdings (SAUC)
Diversified Restaurant Holdings is an approximately $43 million market cap company that is the largest Buffalo Wild Wings Franchisee, with 65 locations in the Midwest and Florida. The company has been managing costs and paying down debt in a very tough restaurant environment. Easier comps, potentially improving COGS and valuation make this worth a look.
Salem Communications (SALM)
Salem Communications is a $118 million market cap company that includes 118 radio stations, over 100 website properties, a growing mobile app business and a publishing business. Trading at 7.3 times historical EV/EBITDA ratios, the company continues to pay down recently refinanced debt as they also pay out a 6%ish dividend and continue to do small acquisitions for growth.