Micro Caps and Buffett's >50% returns

[DooDiligence]

Ballantyne Strong

$45M Mkt Cap
$30M Cash
$25M Public Equity Investments
$13M Preferred Equity Investment
and an operating movie screens biz that earned $8M in EBITDA in 2019

It would be amazing if a Buffett/Munger type took over and invested the equity cash.

Idea courtesy of @jj_shipley

I see net debt of $9.4m. What am I missing?

Now I'm the shameless cloner.

Your DD smells like DooDoo

You're the 1st person to correctly uncover the real meaning of my username.

[spartansaver]

Ballantyne Strong

$45M Mkt Cap
$30M Cash
$25M Public Equity Investments
$13M Preferred Equity Investment
and an operating movie screens biz that earned $8M in EBITDA in 2019

It would be amazing if a Buffett/Munger type took over and invested the equity cash.

Idea courtesy of @jj_shipley

I see net debt of $9.4m. What am I missing?

Now I'm the shameless cloner.

Your DD smells like DooDoo

You're the 1st person to correctly uncover the real meaning of my username.

On Feb. 4th, company sold some electronic billboard making division for $23M. Last balance sheet cash amount was $7M. Debt is around 3.7M as of most recent report (I ignore leases). Movie screen business is now losing money. There is plenty of corp. SG&A that the company breaks out separately. I doubt movie screen business can just get rid of corp. SG&A, someone needs to do the accounting and whatnot. Doesn't seem that interesting and for some reason they are issuing equity (doesn't make much sense if they think it is undervalued with a whole pile of cash). Maybe I'm missing something.

[DooDiligence]

No position & no intention of one.

Popped up in my Twitter feed about the same time this thread got bumped.

Here's the full discussion from the originator of the idea:

https://twitter.com/jj_shipley/status/1360056910536445953

[samwise]

Want a 51% CAGR since the start of this thread?
This is the way
http://www.nonamestocks.com/p/portfolio-performance.html

But
1. Only the poor man shall pass. I doubt you can put a million in this portfolio, and you certainly cannot sell your whole position on 2 hour spikes in the price.
2. You need the force with you, i.e. lots of luck, since the performance comes from a few stocks. Miss those and your returns may not be so good. Also if you sell them too early.

[ValueArb]

Heres an example of the most micro of micro-caps, and most butt of cigar-butts.

Infinite Graphics - INFG, hasn't filed financials since 2003. Last traded at $600 in September and October. Looking at their web site I can't tell if they are still in business or not, may have sold/licensed off all their products a year or two ago.

The interesting part? It paid a $400 dividend on January 4.

[OracleofCarolina]

http://ballantynestrong.com/wp-content/uploads/2021/02/BTN-INVESTOR-PRESENTATION-v.7b.pdf

Hey,

Took a look at Ballantyne Strong and there is a Fairfax connection. BTN owns 30% of a company called GreenFirst Forest Products,
https://gffp.ca/wp-content/uploads/2020/11/Itasca-GreenFirst_11_9_2020.pdf

Paul Rivett, former president of Fairfax, is on the board there along with Rick Doman. Canadian lumber mill bought out of bankruptcy, could be interesting.