Off the Radar – 'Too Cheap to be True'
The case for a micro-cap telecom supplier that after years of struggling appears to be coming into its own.
(If you’re not yet a full subscriber to Herb On the Street and my Red Flag Alerts, and wonder why you should subscribe, I explain right here.)
Roadmap…
Review of Robert’s prior picks.
Newest idea – a laggard for years.
Why now?
Target - stock near-tripling.
Back in January I wrote, slightly revised…
The concept of “too cheap to be true” is too obvious to be ignored as a way to find potentially good ideas...
At least it is for former hedge fund manager Robert Marcin of TB Partners, who is no stranger to my readers.
Like so many seasoned investors with a few decades under his belt, he’s highly independent and spends time rummaging through the junk yard of often overlooked stocks… in search of a winner.
My favorite, in recent years, is Bel Fuse BELFB 0.00%↑, which makes electronic connectors. Robert first told me about it in January 2022, when it traded at $12. As is often the case with ideas like this, I listened politely and forgot about it… until April of that year.
Robert will never be accused of being an introvert. And with the stock at $15, up 25% from his initial mention, he wrote chiding me for not writing about it when he first mentioned it.
But even after that nice gain, he felt it was still cheap.
Long story short, it’s now around $62.
Actually, now as I’m writing this, it’s $79 and Robert has been selling in the 70s and 80s.
Meanwhile, the company I was writing about back then, Select Water WTTR 0.00%↑, was around $7 at the time. It’s now $13 and Robert’s price target remains $25-$28 over three to four years.
So Let’s Just Say…
Robert has a track record with me…
While he has had his share of blunders – don’t we all! – his favorite theme is “too cheap to be true.” He was first pitched this latest idea several years ago. He passed on it, but continued to watch it until he started to nibble away earlier this year.
But like many of his ideas, while he found it interesting enough to buy, he still viewed it as a lottery ticket… until he didn’t. I’ve known Robert long enough to know when an idea morphs from sheer speculation to true conviction.
And to say he has true conviction this time would be an understatement.
Now, for the details…