Equity Raise

Over the weekend and on Monday I continued to dig into a small little manufacturer that has become a larger position in my portfolio. The stock is cheap. It is trading close to a zero enterprise value and if you add back the equity position they own in a publicly traded stock you are getting paid to own the company. Not only is it cheap on an enterprise value basis, but the if you go through public acquisitions in the industry the stock has 50% upside today — based on price to sales multiples — and could be a multi-bagger over the next few years as sales aggressively ramp up.

I haven’t seen a situation like this in a long-time and as I slowly learn more about the stock the more I want to own. Even better, the recent equity raise at the majority owned investment will clean up the financial statements in future periods, making the parent company much easier to value.

Before we get into the stock idea today, first a message from our sponsor..

Listen to this video from the CEO on why he thinks the shares of Greenbriar Capital Corp will substantially increase in value.

Now let’s dig into the stock…