Anthony

@evfcfaddict @DavidShteyman Followed this loosely the past couple of years. Any reason for the recent sell off? Or typical small cap volatility?

@DavidShteyman Microcap GOAT CEO (he took over at 0,8$ or so) who already nicely integrated some businesses he bought for cheap or out of bankruptcy. If that works out for the current m&a deal they did last year, FCF should easily exceed 15M next year.

Just doubled my $FTLF position, 31% Cash left

@Idiosync_Cap @blondesnmoney To what

@blondesnmoney @HalvioCapital Halvio pls respond

Good overview of SE Holdings 9478.T I wrote about it in my Q3 letter. The company is a buyback machine that started prior to the TSE reforms but ramped it up even more since.

@_Idea_Lab @MikeFritzell Most of the stocks I'm in the liquidity isn't great. Just have to be patient

@HalvioCapital @MikeFritzell How do you get around the stock liquidity? I’m seeing $87k in daily liquidity and they’re actively buying back shares to reduce the float even further?

$CPH.TO Knocked it out of the park in Q4. - Q4 Revenue only 3% YoY but that's being distorted by a total collapse in Absorica licensing, which is now a de minimis part of the business, and could well come back in 2027 once the Sun agreement expires. The key piece here is that Natroba sales grew 13% (most important KPI for the company) and Epuris continued to chug along with +6% - Costs have come way down as the acquisition is finally integrated. 81% combined gross margin (!), G&A down nearly $2m, and interest expense trending to zero as they've paid down the acquisition financing. - $7m EBITDA in the Q (~60% margin, +40% YoY), despite weaker seasonality...call it +$30m run-rate annually. This is an exceptionally profitable business already, before we account for further Natroba growth in the US (at 85% gross margins) + Canada 2027 and intl licensing, as well as potential restructuring of Absorica, etc. - Language in the PR suggests to me that M&A may be coming soon. Notably, they've paused on buybacks the last couple months... - US shares closed at $10.60, so market cap is ~$270m. Net cash probably ~$6m as we've work into the new year. So we're at <9x EBITDA that is very likely to grow mid-teens or more in 2026. Defensive, returning capital, free optionality. Remains a significant position. DYODD.

@turtlebay_io I'll have to keep my eye out for them more

@HalvioCapital Indeed. I started with a focus on these “coattails with a catalyst” type investments (see below). They’re still my favorite smaller situations. I’m trying to buy a few now that are the best I’ve seen in years.

This is good advice from DCS. Here's another area to look at: "coattails" Small deals with thin floats where you can buy a few shares and tag along. Focus on situations where there's an exit baked into the deal. One of my writeups from when I started investing:

@turtlebay_io Thanks, makes tons of sense. I've found that management buyouts are probably the most fertile ground for idea generation so kudos to you for finding this back then and great write up.

My #1 worry in small companies (esp darks) is getting screwed. But how often do you get these small companies with great managers who look out for minorities? I’ve found that instead of looking for great management, look for great ‘setups’. Situations where you’re (a) aligned with the insiders and (b) can see the exit (in some cases, you can even create an exit yourself). I’m more concerned with these setups than I am with management quality. Were the people at Fortune ideal managers looking out for small shareholders? No. But you had a setup where they had life-changing money on the line and you could invest alongside them. They had just taken out the preferreds and started issuing options at the subsidiary level. And it had downlisted and was trading between $0.02 and $0.20 (my writeup was actually on the high side of where it had traded).

@turtlebay_io Interesting post. Been reading more about this deal and saw Nate Tobik had some articles years back. What gave you confidence in investing alongside this mgmt. team going dark? Just the cheap price?

- CASH IN (3/18/2015): $0.200 - CASH OUT (9/16/2016): $0.586 —CAGR = 104%— But the most you could've invested was $100K.

@gw_investing Based on the last f/s filed, it should be a decent payout and they do say in the notice they say they'll have "substantial cash for distribution to shareholders. Problem is I have no idea what they burned from then til now

I just saw that $MHI.AX had an EGM in February to appoint liquidators and wind up the company. The notice of meeting mentions that “the exact amount of the distribution will be announced at the meeting.” Any fellow shareholders who heard anything?

100% ownership of the crown jewel

$SBMW Security Midwest Bancorp has been a pretty successful mutual conversion that I came across a few months back. Came public at under half of book last July around $11/share and is already up about 60% (no position). Decent chunk of loan book and deposits are with the cannabis industry which gave me pause when I saw it. Any other interesting upcoming thrift conversions?

@ErikZeleny property tax assessment. Usually extremely conservative value in my experience

@HalvioCapital How you estimated low $20m valuation for RE ?

Went long some FP Newspapers $FP.V this week. $5m market cap for a 49% interest in a paper that does $5-$6m EBITDA a year, loan pretty much paid down from their mistaken equipment purchase, owns their own real estate that could be worth low $20m. With cash used to pay down debt the past few years, it should start piling up if they don’t do some type of shareholder return.

@vanckzhu My favourite line is “delivers immediate and certain cash value to our shareholders.” Ya 50% less cash value than the prior day

@ShaleTier7 It’s been historically profitable, friendly capital allocation, and real estate worth more than the market cap. I’m sure there are worse things to own

Can't think of a single thing I'd rather own less than a TSXV-listed Leon's Furniture REIT spin-off play.

@TheWiseIC Owned this before but we're now coming up on 3 years of announcing their intention of putting the properties into a REIT. Canadian tire and loblaws both did it under a year. Still think it will work and want to own it but its traded sideways for a few years now

Few people know but Leon’s Furniture $LNF.TO is also a REIT play. They own tons of land in Toronto at 0 cost basis (from 50-60+ years ago) and are looking to spin it off on the TSX. Huge underrated gem. I don’t hold any.

@NestBetter They had one a year or two ago that worked out well

$DCBO odd lot tender pays $362 on $1655 outlay resolves in <30days and it's (almost) a risk free payout.

Great article outlining some of the Canadian mining companies’ expropriation claims against Venezuela and the current state of the CITGO bid. Of course Elliot is there as the leading bidder for CITGO theglobeandmail.com/business/artic…

@TheDunkCentral @KevinOConnor Doesn't this just incentivize tanking at the beginning of the season then?

There’s growing support for a potential rule that would freeze NBA draft lottery odds at a certain point in the season, meaning losses after that date wouldn’t affect lottery positioning, per @KevinOConnor The date could change each year and might not be revealed until after the season to discourage tanking.

@SajKarsan Wish I knew. They did a 10 cent special dividend a couple years back IIRC. CEO is 85 and both daughters just left the company so maybe odds have something happening have gone up

@HalvioCapital What are the plans for the cash? Any chance of a return?

My favourite part about the $PFHO Q3 release is they added about $1m in cash to the balance sheet in 9 months. The market cap is roughly $15m so you're creating the EV for $3m and the company will do $1m in EBIT this year, if not more.

57 out of 12,333: An OTC Journey; A Couple of Names $QEPC, $WSTL halviocapital.com/blog/a-journey…