What Are Your Favorite MicroCap Stocks?

Ian Cassel Blog, Question & Answer 32 Comments

At MicroCapClub we aim to be the place where experienced microcap investors share ideas in our members forum while also providing free quality content for the public on this blog.  We are currently discussing over 80 high quality microcaps in our member’s section.  Unlike other clubs we aren’t a bunch of snooty know it alls, we leave our egos as the door.  We also don’t want your money like every other penny stock website or guru, we want your brain.  The power of MicroCapClub is in the eclectic mix of backgrounds and experiences each investor brings to the club.  We don’t claim to know all the microcaps out there. I’d like to open up this blog for comments on what microcaps you like and why.

What are your favorite microcap stocks? 

Comments 32

  1. Post
    Author

    I’m following closely INMG, SPIN, NROM as profitable microcap growth plays that are under followed. I’m also following ABHD RVUE VNRX as “story stocks” (ie: they have a story now need some substance).

  2. Always a fun topic. I’ve been trying to accumulate INMG(but there are no shares), MMT.V(which is trading at 1-2x cash flow), RVUE, PSTX, and a few others….VRS.V is one of my favorites that I think is really undervalued here. Looking forward to see what others are buying.

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      1. Right now? I think Rye Patch, which snuck in and claimed some Couere D’Alene property under their noses, is very interesting. The whole sector is so beaten down though everything is pretty cheap. NKL(Prophecy Platinum) looks really cheap here…we’ll know more when their PEA is out in mid-June supposedly. I’m not convinced a bottom is in at all but the sector is sure seeing a relief rally.

        Northern Graphite(NGC) still looks super attractive at these levels. I sold out of my position but am going to start nibbling again….

  3. API – Now at .66/.67…I am accumulating….stock should have never dropped back this far. This is a possible buy-out candidate for Cisco. Stock should double, at least, eventually.

    APNT – .20/.21 This is a nano-tech company. They have released some very aggressive projections for revenue growth over the next three years.

    IMSC – .84/.90 Pink sheet stock. The Quantum Sniffer for airport security is a game changer. Once they get TSA approval, stock should soar. They are projecting $3/share.

    MSEH – .162 Mesa oil and gas. Caprock issued a report yesterday projecting a price of $1.15/ share. They are already profitable.

    I have a lot more that I follow and own many of them, but I don’t want to wear out my welcome here before we get started.

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  4. Dynamic Ventures – DYNV:

    Contracted builder in North Dakota seeing explosive growth with shortage of housing due to Bakken Oil effect.

    $5 MM market cap and well over $50 MM in projects for 2012 alone. Current contract entitles them to cost plus 8%, so zero risk of real estate pricing fluctuation.

    1. Post
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      Vince: Very interesting and real nice growth curve to date. A shame the margins are so small. Contributor, Sean Marconi is traveling to the Bakken in a couple weeks.

      1. That’s great! No exposure at all on $DYNV, but simply operating in the perfect industry at the perfect time. The future is bright and every PR on projects will see pops in share price IMHO.

        1. Vince:

          Could you set up a meeting so I can meet with the company while I’m out there. Always interested in the growth in the Bakken!

  5. Heres my super pinky spec play….been in this one for – EVER lol. $VTSI Small arms simulation
    company making inroads with military and law enforcement agencies. Had an unnoficial PR today posted on their website but hasn’t been released on the wire and may not according to IR(just got of the phone with them) but Lockheed Martin has signed off on this so far. Their relationship was announced 24 hrs ago at the ITEC show. http://www.virtra.com/virtra-systems-collaborates-with-lockheed-martin-to-innovate-small-arms-simulation-training/
    Their also in the process of getting audited financials.

    I also like $neon Just wich it would come down to the low 4’s so I can buy some more 😉

    1. Post
      Author

      Congrats on the Lockheed deal as that will certainly bring credibility to the company. Next thing is audited financials which you know is a must for any serious investor. Not saying you aren’t 😉

    2. Be advised:

      OTCMarkets.com has VTSI classified as ” Caveat Emptor” i.e. Buyer Beware.

      Their web site looks like they have a great product – but that Skull & Cross Bones give me chills.

      Best of luck with it . . .

  6. I’ve followed SPIN for almost a year now and really like their business model. Very good price here at these levels as well. VTNR for a long term hold I like the growth story here and already profitable. They have a few million share overhang here but still one to watch. INX.v or INXSF.pk is in the Mobile Data Capture space building complex apps. Solid growth as well and gaining additional market share.

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  7. I did an article today on Seeking Alpha on two of my favorites. MNKD and CTTC. Both are near their 52 week lows–and both have very promising technologies that could be gamechangers in the field of diabetes and chronic pain. I woul db einterested in your opinion after you do some DD.

    1. Post
      Author

      I’m familiar with CTTC. Marc Robins from Catalyst has been following it for years. What is management saying in regards to expected traction for their pain therapy device?

      1. CTTC has a chronic pain relief medical device that actually works–yet it is still under the radar. Because the company did not have the money too PAY for clinical studies (although it is cleared by the FDA for sales in the US), the company has to wait for studies paid by Mayo Clinic, VA. Commonwealtth University and Univ. of Wisconsin. Their willingness to do studies–uncompensated– on Calmare (the name of the technology) should not be overlooked.

        Next week–Friday, Saturday and Sunday– some of those clinical results will be presented at ASCO. TWO clinical abstracts–abstracts that have to be ACCEPTED by ASCO.

        I would expect more news out of ASCO on the Calmare studies the week of June 4.

        Basic DD with videos can be seen at http://www.calmarett.com. Another interesting way to get a feel for Calmare is on YouTube where physicans have posted patient testimonials. The Seeking Alpha article this week has two links to TV news reprots on the technology too.

        But with only 14.8 million shares out and the stock coming off its 52 wee klows, I thought this could be a timely trading and/or investment idea for medical technology investors.

    2. David,
      How do you feel about CTTC? I have been following them for a couple years now. They are def at an all time low with little to no cash on hand. I am assuming this is because they are still waiting for studies to finsih up. The question is, “Will the results help them with future sales”.

  8. ONCY, (ONC on TSX), Oncolytics Biotech, Under $4 looks very attractive. The Canadian biotech is using a variant of common reovirus in its anti-cancer drug Reolysin. It has shown excellent efficacy in clinical trials targeting a number of cancers and its safety profile is superior with very, very mild side effects. Initial results from SPA approved, adaptive design, 2 part Phase 3 trial are expected soon. A dozen clinical trials are proceeding in a number of cancers, several of which are phase 2 trials in large indications such as lung, pancreatic and colon. Importantly, the NCI is funding some of these trials with the company only providing the drug which has been scaled for commercial production with Sigma Aldrich.

  9. ATTUF, TISA, RVUE, DSNY and INMG to name a few. All at different stages of growth in varying industries but with potential for significant increases in share price.

  10. Here’s one more that I think is a great long term play that you buy and sit on: Sprott Resource Corp(SCP.T)…this is a fund run under the Sprott umbrella that invest in a mix of commodity projects ranging from Potash to farming. They often invest in private companies as well and hold physical gold bullion in lieu of cash. It’s a great company to slowly buy and accumulate…the stock moves a lot more like a slug than anything but the portfolio has long term value and seems to me to be a great way to play a variety of commodities. My broker even rec’d the company as a great way to invest in agriculture. Market cap is right around $500M

  11. I like MakeMusic (MMUS). It’s a software company with a growing monopoly product (SmartMusic). They’ll benefit greatly from the use of tablets in music and music education. The new CEO has ramped up R&D to take advantage of the mobile opportunity so they’re currently posting losses. The stock doesn’t trade much over cash levels. Hedge funds were buying until they instituted a poison pill to protect their NOL’s. That immediately stopped any further purchases and the stock has melted down.

  12. Hi Ian- Great topic-

    My Favorite MicroCap at this time –> INMG <–

    I have increased my holdings 218% since we met at the Shareholders meeting last month.
    I have been steadily buying on each dip in price. I am likely to continue to do so.

    Lesser Favorites:

    SNWV – they took a heavy hit last Dec. due to FDA issuing a major deficiency letter on their. 'dermaPACE' system. This month the FDA gave the their OK to SNWV's proposed IDE Supplement and additional clinical trial. They are going to need additional Financing – But I believe they look good in the long run.
    ——–

    CYTR- I am up 30% since a 7to1 Reverse split earlier this month.
    ——–

    MCZ-(Thanx to you MicroCapClubRadio Broadcast).
    ——–

    DEJ- They secured a large financing arraignment early this month. They look good as they bring more wells into production this year.
    ——–

    Ian we really appreciate your bringing all this info to our attention.

    I am very glad I took the time to go to INMG Shareholders meeitng in Colorado. It was time well invested

    Safe Memorial Day to all . . .
    ========================

    1. Post
      Author

      Terry: thanks for the comment. Im up in the middle of nowhere at a cabin in central PA bu I still have one bar of service. Have a great memorial day weekend.

      1. Ian:
        Nice to hear from you!

        Sounds like a great place to be for a nice long Holiday weekend.

        One bar will get you by – but it is a heck of a drain on the battery.

        Take care & Have fun.

        Terry
        ==================

  13. BCAP.PK Baron Capital Enterprises

    GTGP.PK Global Technologies

    I highly recommend taking a gander into these two microcap investments and enter for 1000% gainers….99.9% for sure 🙂

    just an fyi to all investors out there!!!

  14. IDLM – Idle Media, Inc is my favorite by far. This is a company that is dominant in their niche, profitable, with no debt, and in the right place at the right time. Their most popular website is Datpiff.com with millions of unique users. They have an extremely gifted CEO (Marcus Frasier) who knows the best way to monetize what he has. Their COO/CFO (Raphael Haddock), formerly from Hudson Square Research, is also incredibly gifted and has accomplished something very few have done. He has taken a company that went dark due to a restatement, made the company current again, and got them back on the OTC. This company is growing fast, and it shouldn’t be more than 2-3 years before they uplist to the NASDAQ. Extremely undervalued and will be trading in the $1-$2 range very soon.

  15. Ian,

    Any idea why Abtech (ABHD) is tanking? Are they not able to secure any contracts this year? Things are looking rough, and it is disconcerting not to get any news.

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