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In Loving Memory of Our Precious
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C
In Loving Memory of Our Precious
Published Since 2006 onsumer prices are higher across the board except for
Daughter, and Sister, Sammi Kane Kraft
A
www.SNN.Network one important category: stock prices! The post pandemic
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Published Since 2006 s we get bombarded
correction is upon us. with market
Inflation information
is the all-time equalizer
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US in thehigher
dollar trades stock market
againstaffect microcap
foreign stocks?
currencies How do And
worldwide. we manage
the “R”the
PUBLISHER
Los Angeles, CA 90066
Robert K. Kraft, MBA
www.SNN.network
holdings
word is onin the
our lips
portfolio?
of the How do pundits!
market we makeSo ourwhere
decisions of whether
are the we should
opportunities?
SNN Chief Executive Officer,
Executive
pUBLiSHEr Editor & Director
buy, sell or hold? As investors we do need to decipher pertinent
How do investors with cash buying power take advantage of this special details from
rkraft@snnwire.com
Robert K. Kraft, MBA
SNN Chief Executive Officer,
situation of high dollar versus low stock prices? Buy, Buy, Buy! Buy withis still
the noise of those trying to sell us their ideas. Picking up morsels of truth
Shelly KraftEditor & Director
Executive relevant
cash, notto onour decision making which brings me to the point of staying in our
margin.
SNN Founder, Publisher Emeritus
rkraft@snnwire.com
skraft@snnwire.com
lane, picking sources we trust with a history of accuracy, doing this will do more
Shelly Kraft to protect
As microcap ourinvestors
self-made wedirectives
now have while
the resisting
opportunity a constant repetitive
that wealthy barrage
investors
Lynda Lou “Lulu”
SNN Founder, Kraft Emeritus
Publisher
SNN President & Director
skraft@snnwire.com of attempted paid influences.
enjoy, buying low. Most fortunes are made during financial crisis’ when
lkkraft@snnwire.com
Lynda Lou “Lulu” Kraft equities sell off as investors run for the doors raising cash to cover margin
ASIAN
Leslie
PACIFIC &
SNN President
Richardson
CORRESPONDENT
lkkraft@snnwire.com
Director
Pundits
calls, havein the microcap
more essential world oftenneeds
financial preachother
doingthan
yourtheir
homework, believe
portfolio’s or in
your own methods, stick to your plan, learn from your mistakes,
simply want to stop the bleeding in their portfolio holdings. Regardless of and build your
SNN
aSiaNCompliance and
paciFic corrESpoNDENT
due diligence
Leslie Richardsonadministration sensibility to maintain focus. I believe for the most part they are correct.
their reasons this rare opportunity presents itself in broad daylight. It’s a How-
Jack Leslie
SNN coMpLiaNcE aND ever, it’s quiteof
smorgasbord difficult
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locatedo non-biased
we want to information
own? during our searching for
chairman
DUE DiLigENcE
Dr. Leonard
Jack
of snn advisory board
aDMiNiSTraTioN
Leslie Makowka
it and even harder to interpret incoming information when it finds you.
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to blindly and since
throw money at Iperceived
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it is rather
GRAPHIC PRODUCTION
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own common sense, this method may be costly since it also
to suggest you follow your tried-and-true methods of due diligence and embeds learning
Unitron Media Corp
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from one’s
stock own
picking mistakes.
since you haveFor been
example, for generations
tracking stocks to buy investors relied
in your on their
perceived
grapHic proDUcTioN stockbroker or wealth advisor to “trust” their advice, timing,
great companies but were overpriced, overvalued or out of your reach. How ideas, guidance
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This publication and its contents are not to be construed, under any
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I’m concerned and in my opinion, I would rather fail or succeed because of my
circumstances, as an offer to sell or a solicitation to buy or effect
MicroCap Review Magazine is owned and operated by SNN Inc.
transactions in any securities. No investment advice is provided or
should be construed to be provided herein. Planet Microcap Review
own decisions rather than being led to slaughter and placing blame elsewhere.
This publication and its contents are not to be construed, under any
Magazine and its owners, employees and affiliates are not, nor do
circumstances, as an offer to sell or a solicitation to buy or effect
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transactions in any securities. No investment advice is provided
investment advisors. This publication may contain “forward-looking
or should be construed to be provided herein. MicroCap Review
Like everything in the Stock Market, MicroCaps are down. As of EOD on June
statements” within the meaning of the Private Securities Litigation
Magazine and its owners, employees and affiliates are not, nor do
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
any of them claim to be, registered broker-dealers or registered
Section 21E of the Securities Exchange Act of 1934. All statements
17, 2022, the MicroCap Review (MCRI), our proprietary MicroCap index tracking
investment advisors. This publication may contain “forward-looking
other than statements of historical fact are “forward-looking state-
statements” within the meaning of the Private Securities Litigation
ments” for purposes of federal and state securities laws, including,
Reform Act of 1995, Section 27A of the Securities Act of 1933 and
MicroCap performance, is down 26.73% YTD; the only index we track that is
but not limited to, any projections of earnings, revenue or other fi-
Section 21E of the Securities Exchange Act of 1934. All statements
nancial items; any statements of the plans, strategies and objectives
other than statements of historical fact are “forward-looking state-
of management for future operations; any statements concerning
doing worse is NASDAQ, which is down 31.36% YTD. I don’t want to spend time
ments” for purposes of federal and state securities laws, including,
proposed new services or developments; any statements regarding
but not limited to, any projections of earnings, revenue or other fi-
future economic conditions or performance; any statements of belief;
nancial items; any statements of the plans, strategies and objectives
in this editorial discussing why; I highly recommend tuning into Planet MicroCap
and any statements of assumptions underlying any of the foregoing.
of management for future operations; any statements concerning
Such forward-looking statements of or concerning the companies
proposed new services or developments; any statements regarding
mentioned herein are subject to numerous uncertainties and risk
future economic conditions or performance; any statements of belief;
Podcast to hear what my guests have to say about the matter. The real ques-
factors, including uncertainties and risk factors that may not be set
and any statements of assumptions underlying any of the foregoing.
forth herein, which could cause actual results to differ materially from
Such forward-looking statements of or concerning the companies
those stated herein. Accordingly, readers are cautioned not to place
tion is, well, now what? The summer is an opportune time to start reflecting on
mentioned herein are subject to numerous uncertainties and risk
undue reliance on such forward-looking statements. This publication
factors, including uncertainties and risk factors that may not be set
undertakes no obligation to update any forward-looking statements
forth herein, which could cause actual results to differ materially from
what your financial goals are for the near and long term using some of the data
that may be contained herein. Planet Microcap Review Magazine, its
those stated herein. Accordingly, readers are cautioned not to place
owners, employees, affiliates and their families may have investments
undue reliance on such forward-looking statements. This publication
in companies featured in this publication, may purchase securities of
enclosed in this issue of the magazine, as well as macro data/indicators. Few
undertakes no obligation to update any forward-looking statements
companies featured in this publication and may sell securities of com-
that may be contained herein. MicroCap Review Magazine, its own-
panies featured in this publication, at any time and from time to time.
ers, employees, affiliates and their families may have investments
things we are certain of right now: liquidity has dried up, interest rates have
However, it is the general policy of this publication that such persons
in companies featured in this publication, may purchase securities
will refrain from engaging in any pre-publication transactions in secu-
of companies featured in this publication and may sell securities of
rities of companies featured in this publication until two trading days
companies featured in this publication, at any time and from time to
gone up (and probably will continue to) in order to rein in inflation, high flying
following the publication date. This publication may contain company
time. However, it is the general policy of this publication that such
advertisements/advertorials indicated as such. Information about a
persons will refrain from engaging in any pre-publication transactions
company contained in an advertisement/advertorial has been fur-
growth names have taken it on the chin. There’s actually a bunch of things
in securities of companies featured in this publication until two trad-
nished by the company, the publisher has not made any indepen-
ing days following the publication date. This publication may contain
dent investigation of the accuracy of any such information and no
company advertisements/advertorials indicated as such. Information
that we’re now certain of, but at the end of the day, despite rising inflation, this
warranty of the accuracy of any such information is provided by this
about a company contained in an advertisement/advertorial has
publication, its owners, employees and affiliates. Pursuant to Section
been furnished by the company, the publisher has not made any
17(b) of the Securities Act of 1933, as amended, in situations where
may sound otherworldly these days, but CASH IS STILL CASH. Having cash to
independent investigation of the accuracy of any such information
the publisher has received consideration for the advertisement/ad-
and no warranty of the accuracy of any such information is provided
vertorial of a company or security, the amount and nature of such
by this publication, its owners, employees and affiliates. Pursuant to
deploy in times like these is where the greats have made names for themselves.
consideration will be disclosed in print. Readers should always con-
Section 17(b) of the Securities Act of 1933, as amended, in situations
duct their own due diligence before making any investment decision
where the publisher has received consideration for the advertise-
regarding the companies and securities mentioned in this publication.
ment/advertorial of a company or security, the amount and nature
At least for me, especially if we are going to continue to see declines, not just in
Investment in securities generally, and many of the companies and
of such consideration will be disclosed in print. Readers should al-
securities mentioned in this publication from time to time, are specu-
ways conduct their own due diligence before making any investment
lative and carry a high degree of risk. The disclaimers set forth at
MicroCaps, but overall markets, is when I’m reflecting on how I want to deploy
decision regarding the companies and securities mentioned in this
Planetmicropcap.com or SNN.Network - disclaimer are incorporated
publication. Investment in securities generally, and many of the com-
herein by this reference.
panies and securities mentioned in this publication from time to time,
cash that will set me up for financial independence in the next 10-15-20 years.
are speculative and carry a high degree of risk. The disclaimers set
forth at http://www.microcapreview.com/disclaimer/ - disclaimer are
We don’t have all the answers, however, by reading this issue of the magazine,
incorporated herein by this reference.
E D iTo r iaL
just might be around the corner! —Shelly Kraft 296.51%.
L
et’s beat around the bush, for Q3
A
2022 (and all of 2022), it’s been This is not our first go round, markets are cyclical
s we get bombarded
tough being with market information
a MicroCap investor. history verifies this. However, I always go back to
and intel in the news, social media, newsletters,
The stats tell it all: The Planet MicroCap insights that a friend of Planet MicroCap, Rick Rule,
TV ads, YouTube
index etc. we
was down have to
10.53%, keepfar
which our would always remind me: Bear Markets are authors of
wn perspective in mind,
outpaces thewhich
next is, how does
biggest loserwhat’s
for Bull Markets. I think about this (and the inverse) quite
ppening inthe thequarter
stock market
(DJIA affect microcap
was down 6.25%).stocks?
Year How do we manage
to date, a bit. the
Specifically, what areas of the market are people
ldings in our portfolio? How do we make our
MicroCaps are down 34.74% (according to the decisions of whether we should
disliking and avoiding and WHY? It’s abundantly clear
y, sell or hold?
PlanetAsMicroCap
investors we do need
index). Lookingto decipher
at thesepertinent
numbers, detailslooking
from at every statistic out there that MicroCap
e noise of those trying to sell us their ideas. Picking
it’s pretty clear, from a macro perspective, we’ve up morsels of truth is stillare the unchosen right now. If you’re reading
stocks
evant to our decision making which brings me to
been a risk-off environment. When you dive deeper the point of staying thisour
in editorial and this issue of the magazine, you prob-
ne, picking into
sources we trust with a history of accuracy,
individual sectors, sentiment has been negative doing this will do more
ably already know this. That’s why the main theme for
protect our self-made
across directives
the board while
(Mining andresisting
Cannabis a constant repetitive this
in particular) barrage
issue is about “Fallen Angels” - many stocks that
attemptedand paid influences.
capital has dried up. I’ve done a number of were once loved are now calling MicroCap their new
interviews with CEOs that are very VERY thankful home. There were already a ton of companies to look
ndits in the microcap world often preach doing your
they raised capital earlier this year because things homework, believe in now, there are even more. Do your homework,
at, and
ur own methods, stick to your plan, learn from
now are much more difficult. Every sector in the your mistakes, and build your
you’re in the right place to get started. —Bobby Kraft
nsibility toindex
maintainwasfocus. I believe
hit hard, for the
meaning down most>3%part(except
they are correct. How-
er, it’s quite difficult to more
Healthcare, locateon non-biased information
that in a second), butduring
thereour
is searching for
and even harder to interpret incoming information when it finds you.
Insig hts
14 The Utility of the Future 96 “An Exercise in Clear Thinking”
by Peter Londa, CEO, Tantalus (TSX: GRID) by Richard Revelins, Peregrine Corporate
24 The Case for Bridging the Gap Between 98 Ask Mr. Wallstreet: Shorts by Shelly Kraft
TradFi and DeFi by Caitlin Cook, Host, The 100 Imaging Biometrics, LLC, a subsidiary of
DeadCaitBounce Experience IQ-AI Limited (OTCQB: IQAIF) (LSE: IQAI)
26 Is Gold Losing Its Lustre? Or Are We Just by Dr. Kathleen Schmainda, PhD
Short-sighted? by Gavin Wendt, MineLife
102 Bear Market Blues?
30 Incorporating EOS into Succession
® by Roger Pondel, PondelWilkinson
Planning by Jackie Kibler 106 Investor Relations for Bear Markets
40 Understanding Blue Sky Laws by Mike Porter, Porter, LeVay & Rose
by Andy Kyzyk, OTC Markets Group 108 Inflation, Inflation, Inflation. But What’s
46 ESG for MicroCaps Going on With Gold & Silver?
by Dr. Tim Siegenbeek van Heukelom, Socialsuite by David Morgan and Jon Little, The Morgan Report
68 Market Maker Corner: Market Making 114 The Micro-Cap IPO & Uplisting Report: Q3
Explained by Eric Flesche, Glendale Securities by Lucosky Brookman LLP
HEARTFELT COURAGE
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www.PlanetMicroCap.com Planet MicroCap Review 7
Feature
// By Ben Claremon
Fallen Angels
Devoting Time to Companies that May
Not Be Buyable at the Moment
I
t occurs to me that just about every investor valuations just outside of what I consider reasonable,
will have a different definition of what he or she given the returns and growth profile of the company.
considers a fallen angel. To me, a simple definition These can be companies that have gone from being
would be a high return, growing company that insanely valued to merely expensive or cult-like
previously was held in high regard by the stock stocks that are always a little expensive. Build an
market, but whose price has fallen from previously intellectual history with these companies, set a
lofty levels. Markets vacillate between greed and reasonable price at which to buy them and then
fear and during times when people are fearful, there wait for the vicissitudes of the market to hand you
is the opportunity to buy really good businesses at opportunities when the whole market goes down or
much more reasonable valuations. Now, all of that when a stock has its own mini-recession.
makes for some nice bullet points within an investor
presentation but the important question is: how Do you have any recent or past examples
does an investor position himself or herself to be of a “Fallen Angel” that supports your
able to benefit from temporary to slightly longer definition?
lasting dislocations? We were reminded in March
and April of 2020 that in times when markets are I have long admired Trimble (Ticker: TRMB). The
falling quickly, it is very hard to perform a deep company has very solid margins and has shown
diligence process on a brand new company. During impressive growth over the last 20 years. Trimble’s
such times, investors invariably have to engage in mission is to fundamentally change—via technology—
triage within their existing portfolios and prioritize some industries that have been quite slow to adopt
businesses they have researched in the past when new technology: engineering and construction,
deciding what to add to the portfolio. Ideally, what agriculture and transportation. These are verticals
I want during a market downturn is to have a list with huge TAMs so there is no reason to believe that
of wide moat businesses within secular tailwinds Trimble won’t be able to grow consistently for the
that I have done a fair amount of diligence on. If I foreseeable future. The problem for someone with
have done the work and established prices at which a value-bias is that the stock, which does have some
I would be excited to own such companies, it is end market cyclicality risk, is always “expensive.”
much easier to perform a small amount of additional Based on our standard deviation adjusted multiples,
diligence and then act swiftly. over the last 15 years the stock has traded at aver-
age EV/EBITDA and P/E multiples of 17.8x and 36.4x,
Again, all of that sounds great in theory. But, with respectively.
thousands of publicly traded securities within my
investment universe, how do you I decide to devote The stock has gone from being very rich to just ex-
my limited time to a company that may not be buy- pensive and that has made it a priority for me. I bring
able at the moment? It is always a tough decision up Trimble because I think the stock is emblematic of
and I know I don’t always get this right. However, my the type of situations I look for, as described above.
strategy is to spend time on companies that trade at
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the
Securities Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and
uncertainties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-
looking statement that may be found in this article.
SNN does not receive compensation for, nor engage in, providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities,
strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities
referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.
gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Thank you!
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the
Securities Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and
uncertainties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-
looking statement that may be found in this article.
The company profiled has paid consideration to SNN or its affiliates for this article. SNN does not engage in providing advice, making recommendations, issuing reports, or
furnishing analyses on any of the companies, securities, strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or
legal counsel before purchasing or selling any securities referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related informa-
tion available on the websites of the SEC at http://www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
The Utility
of the Future
The utility of the future will face a perfect storm of operational and
environmental challenges.
I
t is a future in which demand for power threatens With the continued acceleration of this trend, the
to exceed supply, electric vehicles (“EVs”) and United States EIA expects global energy demand to
distributed energy resources (“DERs”) threaten to increase 47% in the next 30 years.
destabilize the grid with power generated at the grid
edge, and extreme weather events threaten to make The bottom line is, we need as much reliable electric-
power outages the new norm. It’s a future in which ity as possible. Because of electric vehicle adoption
utilities need more visibility, flexibility and control at alone, it is estimated that U.S. power production will
the edge than ever before. The only way to thrive in need to double by 2050.
this future is for electricity and data to flow together,
in parallel, all the way from SCADA to the edge. We are also living through the
Decarbonization of Everything
In short, the utility of the future needs to make
every kilowatt and kilobyte count. It’s the only way Because of government policy, increasing regula-
for utilities to achieve true sustainability across all tions and consumer demand, people everywhere are
core functions—finances, operations, environmental investing more in renewable energy and trying to
impact, regulatory compliance, and serving their move away from fossil fuels and coal. Renewables
communities. are becoming a greater share of total energy output
while traditional sources of power production are
We are living through the Electrification declining.
of Everything
In addition, consumer adoption of technologies such
It’s plain to see wherever we look—EV adoption, as rooftop solar, home battery storage and EVs
online shopping, cloud computing and server farms, is putting an even greater strain on a grid that is
computer chips embedded in every device and already outdated and in dire need of modernization.
appliance across all industries—virtually every aspect The traditional distribution grid was never designed
of daily life is becoming electrified and connected. to absorb consumer-generated electricity at this
What was once a one-way flow of power ... Now, as with any data-driven platform, cybersecurity
is of paramount importance. Data interoperability
helps make the entire grid more resilient through bet-
ter supply-and-demand forecasts and responsiveness
to extreme weather events. But that kind of interoper-
ability comes with risks. One industry expert observed
that between 2018 and 2020, 10% of ransomware
attacks on industrial assets targeted utilities.
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities
Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and uncertain-
ties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-looking
statement that may be found in this article.
The company profiled has paid consideration to SNN or its affiliates for this article. SNN does not engage in providing advice, making recommendations, issuing reports, or furnish-
ing analyses on any of the companies, securities, strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal
counsel before purchasing or selling any securities referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related information
available on the websites of the SEC at http://www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
Fallen Angels
Pay Attention to Changes in
Sector Money Flows
F
or a micro-cap company to see significant needs some tailwinds to bring in broader market
share price appreciation, it needs two main support and money flow. As macro factors benefit
things to go its way. Firstly you obviously need a specific industry or natural resource, money
the management and board of directors to work starts flowing down into the smaller end of town,
together to achieve the specific objectives they set i.e. micro-cap stocks, as their propensity to achieve
out to achieve. With each milestone being met the substantial percentage gains are much higher than
company theoretically should see an increase in its large cap stocks. A fallen angel, in my opinion, is a
valuation and share price. Secondly the sector itself stock that benefited from these two factors and as
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the
Securities Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and
uncertainties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-
looking statement that may be found in this article.
SNN does not receive compensation for, nor engage in, providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities,
strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities
referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.
gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
council@nod.org | NOD.org/council
Since approximately 55% of businesses in the US RK: What are some of the company’s value
still need to migrate to the Cloud for their com- catalysts for the rest of 2022, going into
munications, this is the tailwind that will drive these 2023?
businesses to companies like Crexendo and ensure
our strong and continual growth. DG: We believe our company is significantly
undervalued and is a diamond in the rough in a very
RK: 2022 has been a volatile year for challenging equities market. With strong revenue
MicroCaps and a number of macro trends growth of 65% YTD and strong non-gaap earnings of
that you have to pay attention to as well $917K YTD, we are positioned nicely for continued
(War in Ukraine, supply chain, inflation, growth. Our gross margins have improved signifi-
etc…). What has been your strategy to cantly in 2022 and we expect those trends to con-
navigate through these challenges? tinue. We have over $42M in contracted revenues
that will be recognized over the next 60 months
DG: Crexendo has had and always will have an which should be viewed very favorably. With a
inherent focus on fundamentals which we believe very strong balance sheet with virtually no debt, we
helps us weather any stormy challenges that arise. are not impacted by raising interest rates that has
With a focus on top line growth, cost management, crippled many of our competitors. On top of all of
and non-gaap income while maintaining a pristine these positives is a very strong pipeline for possible
balance sheet, we feel we are well positioned in acquisitions that will help our inorganic growth for
good times and bad. Our solutions, although not years to come as we look accretive acquisitions from
recession proof, are very suited for businesses within our existing base of over 200 UCaaS licensees
regardless of economic headwinds as all businesses that use our platform today.
need to communicate effectively and our solutions
make businesses more productive and efficient and For more information about Crexendo, Inc., please
typically saves businesses between 20-50% on older visit: www.crexendo.com
legacy telecom solutions. This is a very appealing
message to businesses regardless on the state of
the economy. In addition, we have been able to
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities
Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and uncertain-
ties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-looking
statement that may be found in this article.
SNN does not engage in providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities, strategies, or information
presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this article.
Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.gov and the Financial
Industry Regulatory Authority (FINRA) at http://finra.org.
I
take many issues with viewing the world strictly
through a lens of binary choice, but the biggest
one of all is the loss of much needed nuance.
Polarizing takes are nothing more than first order
thinking. It’s easy; the path of least resistance. Pick
a camp, and stick around people who will reinforce
what you’ve taught yourself to be true. It’s easier to
stubbornly pick a side than it is to take a thoughtful
and well researched approach. Polarizing takes
are often the ones that get air time. They can be
thoroughly entertaining. But that doesn’t make them
accurate. In fact, the truth rarely lies in the extremes.
The history of the world is filled with countless The path forward cannot be paved without the
examples of innovations put into place to make our cooperation of legacy incumbents. Change is
lives easier. Faster. Cheaper. More efficient. Block- uncomfortable, but market innovation doesn’t
chain technology is, at its core, nothing more than happen in a bubble, it happens for a reason: we’ve
the latest in a long line of technological advances already started to see collaboration and targeted
brought about to improve the systems we use every efforts by some of the largest firms in the financial
Is gOlD
iS Gold lOSiNg
Losing iTS
Its
Lustre? OR
luSTRE? Or aRE
Are wE
We
Just ShORT-SighTED?
JuST Short-sighted?
“You have to choose between trusting to the natural stability of
gold and the natural stability of the honesty and intelligence of
the members of the government. And, with due respect to these
gentlemen, I advise you, as long as the capitalist system lasts, to
vote for gold.” —George Bernard Shaw
M
uch is
uch is being
being made
made of of gold’s
gold’s recent
recent priceprice the year
the year in
in US$
US$ terms
terms below
below $1700,
$1700, itit is
is nevertheless
nevertheless
performance, with
performance, with many
many questioning
questioning whether
whether outperforming most
outperforming most major
major asset
asset classes
classes -- including
including
the yellow
the yellow metal
metal can
can still
still fulfill
fulfill its
its traditional
traditional Treasury bonds,
Treasury bonds, U.S.
U.S. corporate
corporate bonds,
bonds, the the S&P
S&P
role as
role as aa safe-haven
safe-haven asset
asset inin turbulent
turbulent times,times, asas 500 and
500 and tech
tech stocks.
stocks. Gold
Gold has
has therefore
therefore effectively
effectively
well as
well as aa hedge
hedge against
against skyrocketing
skyrocketing inflation.
inflation. After
After fulfilled its
fulfilled its role
role as
as an
an insurance
insurance policy,
policy, by
by helping
helping
all, shouldn’t
all, shouldn’t developments
developments over over thethe past
past couple
couple of
of investors mitigate
investors mitigate losses
losses in
in other
other areas
areas of of their
their
years –– aa global
years global pandemic,
pandemic, unprecedented
unprecedented govern- govern- portfolio.
portfolio.
ment spending,
ment spending, European
European war,war, global
global uncertainty,
uncertainty,
and rampaging
and rampaging inflation
inflation -- provide
provide the the perfect
perfect spring-
spring- Furthermore, the latest report by the World Gold
board for
board for gold
gold to
to thrive?
thrive? Council (WGC) also makes the case that gold can
typically be a powerful investment in the face of a
The fact
The fact that
that questions
questions are are being
being asked
asked about
about gold’s
gold’s potential economic recession. The London-based
relevance is
relevance is not
not at
at all
all aa new
new phenomenon.
phenomenon. Indeed,
Indeed, group has compared the performance of a number
over recent
over recent decades
decades with
with the
the advent
advent of
of new-
new- of asset classes during the course of the past seven
fangled financial
fangled financial instruments
instruments and and the
the emergence
emergence ofof U.S. recessions going back to 1971, and it has found
cryptocurrencies, some
cryptocurrencies, some speculators
speculators have
have become
become that gold performed the best on average aside from
captivated by
captivated by these
these shiny
shiny new
new financial
financial market
market government and corporate bonds.
trinkets -- to
trinkets to the
the detriment
detriment of of gold.
gold.
The bottom-line therefore is that gold’s performance
But does
But does this
this necessarily
necessarily mean
mean that
that gold
gold isis losing
losing must not be viewed simply in terms of its US$ price
out in
out in terms
terms of
of performance?
performance? Gold’s
Gold’s relevance
relevance is is performance in isolation, but it must also be viewed
Figure 1: Gold versus other major asset classes over a 2-year
typically measured
typically measured and and interpreted
interpreted on on the
the basis
basis within the context of how well it has stacked up
period.
of its
of its US
US dollar
dollar price
price performance
performance -- butbut this
this should
should against other asset classes. On this basis, gold’s
not be
not be viewed
viewed inin perfect
perfect isolation
isolation -- as
as gold’s
gold’s perfor-
perfor- performance stacks up very well indeed.
mance must
mance must also
also be
be viewed
viewed inin the
the context
context of of how
how itit Furthermore, the latest report by the World Gold
has performed
has performed in in terms
terms of
of other
other currencies,
currencies, and and also
also Council
What we(WGC)
know also
aboutmakes thefar
gold so case that gold
in 2022 can
is that it
against other
against other asset
asset classes.
classes. typically
has be a powerful
struggled investment
in US$ price in the
terms since facedue
April, of a
potential
to economic
the combined recession.
strength The London-based
of a rampaging US dollar
Let’s begin
Let’s begin with
with an
an examination
examination of
of how
how gold
gold has
has that is at fresh 20-year highs, along with thenumber
group has compared the performance of a relent-
performed so
performed so far
far in
in 2022.
2022. Although
Although gold
gold is
is down
down for
for of asset
less march classes
of theduring the course
US Federal of therate
Reserve’s past seven
hike
26 MicroCap
22 Planet MicroCap
ReviewReview
Magazine www.PlanetMicroCap.com
www.SNN.Network
U.S. recessions going back to 1971, and it has found less mean that investors weigh up the opportunity
that gold performed the best on average aside from cost of holding gold bullion/futures - as neither
government and corporate bonds. generate any interest income. So a rising dollar can
be somewhat of a drain on gold’s appeal.
Figure 5: Gold versus the US dollar index over the past five years.
Figure 7: Gold priced in yen, A$, euro and Brazilian real, compared with US dollar price, over the past 10 years.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Incorporating EOS®
into Succession
Planning
At some point in building a business, succession planning becomes
an important topic of conversation.
E
very entrepreneur that views their business as
an institution separate from themselves should
think about what will happen when they’re
ready to move on—whether that means retiring,
selling the company, or just following a new idea.
Fallen Angels
Can Beaten-Down E-commerce and
Software stocks see a “Resurrection?”
T
he ultimate historical example of this was Like 2001-2002, many e-commerce and software
Amazon.com, which fell 90% back in the 2001- growth stocks that benefited during the pandemic
2002 dot-com crash. Even if you had invested are now down 70-90%. For the selective investor,
just before the downturn, you would have made these sectors could be where the next “resurrection”
great returns over the long-term; and if you bought stock find lies. If inflation begins falling in earnest,
near the bottom, you are probably retired! The issue beaten-down growth names could take off in 2023
is distinguishing future “Amazons” from the myriad or sooner.
dot-coms that went bust during that time.
growth potential, and with contribution margins of Mr. Duberstein has extensive investing experience, having consulted on
31.2%, It should be highly-profitable once it scales. family office decisions across public equity portfolios, angel investing, real
estate, and asset-backed lending since 2004.
The recent discount has arisen because Farfetch In 2016, Mr. Duberstein was the #1-ranked analyst for trailing twelve-month
is enduring a perfect storm in 2022. Russia was its performance on the website Sumzero, a community of over 10,000
investment professionals which tracks investment performance based on
third-largest market, and is now zero. China, the combined metrics of alpha, risk aversion, and consistency.
second-largest market, has seen sales down 30-40%
That year, Mr. Duberstein formed Stone Oak Capital, LLC to leverage his
this year due to both demand destruction and sup- investing experience and training to manage investments for outside clients,
ply constraints. Farfetch reports in U.S. dollars, so under a concentrated value investing strategy.
the strong dollar is keeping a lid on top-line figures. Prior to setting up Stone Oak, Mr. Duberstein worked at hedge fund
Meanwhile, Apple’s IDFA changes have driven up Tiburon Capital Management, as part of their outsourced research team,
where he analyzed global investment opportunities under the firm’s BRACE
demand generation marketing expenses. Thus, Methodology (Bottom-up fundamental valuation, Revaluation catalysts,
FTCH projects just 0-5% GMV growth this year. Actors’ assessment of interested parties, Capital-structure agnostic, and
External factors analysis). Prior to Tiburon, Mr. Duberstein worked at
Wedbush Securities, performing associate duties for both the Ecommerce
Encouragingly, Farfetch is still targeting adjusted and Semiconductor analysts, including extensive modeling, proprietary
EBITDA breakeven, even in this “down” year. Neves research, and channel checks.
expects the company to return to his 30% growth At NYU, Mr. Duberstein studied valuation under Professor Aswath
target next year. Meanwhile, the company should Damodaran, Special Situations investing under Gary Claar (formerly of
JANA Partners), and Global Value Investing under James Rosenwald (of
either lap these headwinds or see them reverse in Dalton Investments). Mr. Duberstein was Vice President of Stock Pitch
2023. In addition, the new deal with Richemont, on Competitions at Stern, and won the Stern Stock Pitch Competition in his
first MBA year. He was later appointed Strategist for the Michael Price
top of other recently-announced partnerships with Student Investment Fund, which manages part of the NYU Endowment. In
Niemann Marcus, Reebok, and Salvatore Ferragamo, that position, Mr. Duberstein designed a new process for vetting investment
among others, should also come through the P&L ideas, and set a strict quantitative process for buy/ no buy decisions
based on a required margin of safety given a security’s risk profile, based
next year as well. on six qualitative and quantitative criteria.
Prior to business school, Mr. Duberstein studied the U.S. energy sector as
We view this slowdown is a mere “speed bump” that well as environmental regulations as a political researcher for Beehive Re-
will reaccelerate. Now trading at just 2x trailing sales, search, a Washington D.C.-based political research consultancy. Prior to
Beehive, Mr. Duberstein worked extensively in the media and entertainment
investors should take advantage of this downturn for industries across project development, production, and post-production
this very unique company. for various production companies, including Village Roadshow Pictures,
New Line Cinemas, Eyeworks TV, Morningstar Entertainment, and others.
In addition, Mr. Duberstein produced short films and documentaries under
Disclosure: Stone Oak Capital is Long Farfetch com- his own production company, both on spec and for clients. While initially
mon shares, as well as short $7 and $8 September drawn to the arts, Mr. Duberstein found his passion for financial markets in
the aftermath of the 2009 Global Financial Crisis.
2022 Puts, and Short $20 October 2022 Calls.
Mr. Duberstein passed the Series 65 Uniform Investment Advisor Law Exam,
which focuses on topics that are important for an investment advisor
Send inquiries to this email address, and our website to know; these include Economic Factors & Business Cycles, Investment
is www.stoneoakcapitalllc.com Vehicle Characteristics, Client Investment Recommendations and Strategies,
and Laws, Regulations & Guidelines.
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the
Securities Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and
uncertainties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-
looking statement that may be found in this article.
SNN does not receive compensation for, nor engage in, providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities,
strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities
referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.
gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
o Continue periodic meetings, with locations to be determined, o Work with management to develop a clear comparison of the
with Media Anchors and Producers. firm's results to those of similar companies or competitors;
o Leverage relationships with media and financial journalists to o Position the management to effectively demonstrate the
effectively communicate the Company’s message; Including but Company’s strategies and objectives so that companies
not limited to, Cheddar, Fox Business News, TD Ameritrade interviews are clear & effective.
Network, Yahoo Finance, Nasdaq Marketsite, Jane King Media,
Modern Wall Street o Pinpointing of the proper media outlets to meet – and even the
right individuals within those firms for maximizing interviews.
o Work with Company to develop a full release calendar, timing
releases and important press announcements for utmost o Monthly analysis of who is watching interviews, along with
effectiveness; commentary on the ‘why’ behind these moves.
o Coordinate additional relationships with the goal of creating o Context around effective interviews, i.e. how does it pertain to
media awareness for the company; what we are seeing amongst peers, the sector and the broader
market. The qualitative analysis that comes from this assessment
o 24 h
hour situational crisis management with a concise strategy. provides company with insight into why Media Networks are
Assist in addressing issues such as product recalls, contract losses, doing what they are doing within their respective sector, allowing
regulatory actions, litigation, loss of key employees, and all Major them to have more pointed conversations with these Media
Media actions. Professionals and be more efficient with their time spent.
MONEYBALLNETWORKS.COM
We acquired two companies (T&L Creative Salads On year-to-date performance, we all know the
RK: 2022 has been a volatile year for I am also excited to supercharge our new acquisi-
MicroCaps amongst a number of macro tions as we fully integrate them on the platform. In
trends (War in Ukraine, supply chain, my last role at Mondelez, I helped to lead the acquisi-
inflation, etc…). What have affected tion and integration of four businesses over four
MMMB and what will your strategy be to years. I saw what worked and, more powerfully, what
navigate through these challenges? didn’t. There is tremendous potential opportunity
with T&L and Olive Branch. Anthony, the CEO of T&L,
AM: As publicly disclosed, commodity costs have shares the same passion I do about high quality and
hit the hardest for our industry. We are passionate fresh ingredients. So much so, that their tagline is “if
about maintaining a high-quality product at afford- they were any fresher, they would get slapped”! You
able prices and will NEVER compromise on quality. are going to see lots of growth and cost efficiencies
We are seeing improvements on this front and have in 2023.
secured better pricing with numerous retailers,
and as such expect to see our margins reflect this I am most excited about our innovation pipeline. For
improvement in the fiscal third quarter. example, when we heard from our consumers that
they wanted a high protein, on-the-go solution, it
Another focus for us is working on managing allowed us to innovate the optimal solution for the
our retailer customers better when it comes to high growth convenience store channel – Meatballs
customization. For example, we sell a 5lb bag of bulk in a Cup. We are VERY excited about this offering. Of
meatballs for the hot bar, but retailer B wants a 5.1lb course, it is high quality and great tasting using all
bag. In the past, we’ve said sure, but that means of the freshest ingredients. But even more exciting
having to possibly qualify a new supplier, carry more is that the sales of are 100% INCREMENTAL to our
inventory, increase production changeovers, etc. We existing portfolio. Meatballs in a Cup in just one of
are now more intentional with our decisions. We many innovations we’ve recently developed, watch
absolutely want to be responsive to our retailers and this space closely as we transition to becoming a
even more to our customers, but the ROI must be “one-stop-shop” for grocers!
there.
For more information about MamaMancini’s, please
RK: What are some catalysts investors visit: www.mamamancinis.com
should keep an eye out for as we move
through 2022 and into 2023?
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities
Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and uncertain-
ties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-looking
statement that may be found in this article.
SNN does not engage in providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities, strategies, or information
presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this article.
Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.gov and the Financial
Industry Regulatory Authority (FINRA) at http://finra.org.
TEXT
HIPHOP
to 707070
uhhm.org | @uhhmuseum
The Universal Hip Hop Museum is a registered 501(c)(3) not for profit charity of New York State.
www.PlanetMicroCap.com Planet MicroCap Review 39
insi g hts
// By Andy Kyzyk
Understanding
Blue Sky Laws
A Company Guide
A
s companies seek to access retail and High What are Blue Sky Laws?
Net Worth investors, Private Wealth Manage-
ment and Non-Institutional growth, Blue Sky Blue Sky laws are state laws that regulate the offering
compliance is an important consideration. Solving and sale of securities within individual states. Each
state compliance issues start with ensuring that state has its own set of rules and regulations govern-
broker-dealers can recommend, solicit and advise ing the sale and solicitation of securities as well as the
investors on your company’s stock. distribution of research to retail investors. Blue Sky
Each state has its own laws and requirements for Both markets are widely used by investors, broker-
gaining Blue Sky compliance. In addition to the dealers and regulators as a trusted source of bona
50 states, there are also 4 jurisdictions (Guam, U.S. fide, readily accessible issuer financial information,
Virgin Islands, Puerto Rico and Samoa) that have which distinguishes these markets from legacy
their own set of rules. Many states provide a set of manual providers and other respective online reposi-
exemptions that make it easy to gain compliance, tories of company information.
assuming you meet the requirements of the exemp-
tion, while others have their own individual rules that The OTCQX and OTCQB markets require a higher
require a more complicated registration process. It standard of disclosure, provide greater transparency
is important for companies to look at the jurisdic- and distribution of information, and have a recog-
tions in which they want to market their security and nized history of supporting regulatory enforcement
examine how that state grants Blue Sky compliance. efforts.
Surveillance and Compliance Processes: Our To learn more about the Blue Sky compliance and
Issuer Compliance team oversees each company’s how upgrading to OTCQX and OTCQB can help your
initial and ongoing compliance with the OTCQX company, reach out to andy@otcmarkets.com.
Rules and OTCQB Standards. In addition, this team
designates certain securities as “Caveat Emptor” Andy Kyzyk
Senior Vice President, Advisor Relations
-placing a skull and crossbones icon next to the Andrew Kyzyk leads the Advisor Relations group at OTC Markets. Focused
stock symbol when we become aware of a public on outreach to the advisor community, Andy is dedicated to enhancing
existing relationships and nurturing new contacts, all in an effort to
interest concern. raise awareness of OTC Markets’ core initiatives. Previously Andy ran
International Business Development. Prior to OTC Markets, Andy served as
Vice President/ Executive Director in the Equities division of Goldman Sachs
37 states now recognize OTCQX and 33 recog- and as Head of the American Depositary Receipts Group for the Goldman
nize the OTCQB Market for meeting the manual Sachs NYSE Specialist Division. Andy has an Executive MBA from the A.D.
Little School of Management and a BA from NYU.
exemption criteria. Importantly these states are
not the only states where our issuers are compli-
ant. The average OTCQX company is compliant in About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for
43 states. trading 12,000 U.S. and international securities. Our data-driven disclosure
standards form the foundation of our three public markets: OTCQX® Best
Market, OTCQB® Venture Market and Pink® Open Market.
In addition to the manual exemption, recent SEC
regulatory changes to Rule 15c2-11 have opened new Our OTC Link® Alternative Trading Systems (ATSs) provide critical market
infrastructure that broker-dealers rely on to facilitate trading. Our innova-
states for international issuers on the OTCQX and tive model offers companies more efficient access to the U.S. financial
OTCQB Markets, as OTC Markets now has regulatory markets.
responsibility for confirming a Company’s Foreign OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC
Private Issuer exemption in real-time. This meets regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered
requirements for certain states, for example Illinois, broker-dealer, member SIPC.
which does not have a manual exemption but allows To learn more about how we create better informed and more efficient
for international companies in compliance with the markets, visit www.otcmarkets.com.
new rule.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
As the oldest Swiss foundation for «rare diseases», we know what is at stake for affected families: the struggle for
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Fallen Angels
When Optimistic Projections and Growth Don’t Add Up
O
ften these types of investments can be found based on sentiment and flows, which often leads to
after an industry or market has been bid up distortions between stock prices and intrinsic value.
over several years, due to extremely optimis- Taking advantage of Mr. Market’s temperamental
tic projections, but then growth doesn’t add up to the nature leads to fertile grounds for value investors. As
implied growth needed to warrant the extended valu- Horace said, “many shall be restored that now are
ation. So much of short-term market performance is fallen and many shall fall that now are in honor.”
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the
Securities Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and
uncertainties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-
looking statement that may be found in this article.
SNN does not receive compensation for, nor engage in, providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities,
strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities
referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.
gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Society, investors, consumers and employees are Simply starting to report and disclose ESG metrics
expecting companies to grow in a financially sustain- today demonstrates a commitment to ESG transpar-
able, yet environmentally viable way. ESG is used ency. Perfection is not required and metrics can be
by institutional and socially conscious investors to improved over time — there’s no reason to wait.
screen companies prior to investing. It’s also looked
at by consumers and employees when they’re mak- Misconception 3: My investors don’t care.
ing decisions about what companies to get behind.
The days of investors focusing solely on financial
What does ESG entail? statements are long gone. If you want to attract
retail investors, institutional investors or fund manag-
E - Environmental - can include things like resource ers, you’ll need to meet ESG criteria.
conservation and emissions
Since starting its ESG journey with Socialsuite, miner-
S - Social - can cover issues like equal pay, diversity als exploration company, Latin Resources (OTCQX:
and inclusion, health and safety LNRDY; ASX: LRS), has raised a transformational
G -Governance - looks at the board composition, A$35 million, anchored by A$15 million from a Cana-
and what rules do you play by. dian ESG fund.
Multinationals and large publicly listed companies know While you may not think of ESG as a priority, a
that ESG reporting is a must these days. But when it strong ESG proposition can safeguard a company’s
comes to microcaps, a number of common misconcep- long-term success. ESG is a global priority, so if ESG
tions still exist. Some executives discount the value of is not a priority for your business, ask yourself why?
ESG entirely, while some feel the pressure and urgency
around ESG but are unsure how to act on it. Socialsuite client, Minbos Resources (OTCPK:MNBRF;
ASX:MNB) for example, is attracting more capital,
As the leading ESG solution for micro to mid caps, better customers and top talent due to its unwaver-
Socialsuite speaks daily to executives about the ing commitment to zero-carbon projects. It’s no
misconceptions surrounding ESG reporting. These secret that investors are actively seeking to invest
include: in ESG-aligned companies and Minbos’ recent $25
3. Seek an external view Tim is Chief Impact Officer at Socialsuite. He is a Environmental, Social
and Governance (ESG) specialist passionate about aligning organisations’
overall purpose with delivering day-to-day social good while on the path
Working with expert partners can help you stay to profit. With global experience supporting small to large-cap companies,
Tim has focused on closing the gap between corporate prosperity and
accountable, build knowledge, help validate your sustainable development outcomes through identifying shared value
findings and identify opportunities for improvement. opportunities.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
as·sur·trak
/əˈSHo͝or, trak/
noun
1. Focused Insurance Strategies.
Assurtrak was founded on the belief that starting with a great plan
is the only way to finish with the best result. We are experts in
specialty commercial insurance and we focus 100% of our
training, resources, and knowledge into providing the best
products, pricing, and service in the business.
However, we avoid overreacting to macro trends, which Thunderbird is uniquely positioned within the industry
can hurt the Company long term, and do our best to to meet the changing needs of streamers, and
remain focused on strategic opportunities that support demands of viewers, through the Company’s thriving
sustainable growth while increasing shareholder value. animated (Atomic Cartoons) and unscripted (GPM)
For example, to offset inflationary pressures, we are divisions. These two types of content continue to be
looking at ways to increase our prices to a point where cornerstones of major streamers’ strategies to continue
both the Company and the client still benefit. gluing subscribers (and the key co-viewing audience).
We will also continue leveraging our global distribution
One constant remains while navigating through new and consumer products division in LA to commercialize
situations; we will never sacrifice on creating pre- our own IP while also acting as a third-party distributor
mium quality content. How? By putting people first. for other companies’ IP to increase revenues.
Our people and our company culture are a top prior-
ity. Ultimately, a happy workforce with motivated Above all, we remain committed to creating premium
team members is what helps us deliver the premium quality content for our partners around the world
content we are known for industry-wide - and it’s a and pursuing the right M&A opportunity when it
value we will never waver from. arises. As such, investors can expect to see contin-
ued and sustainable growth in the years to come.
RK: What are some of the company’s value
catalysts for the rest of 2022, going into For more information about Thunderbird Entertain-
2023? ment, please visit: www.thunderbird.tv
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities
Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and uncertain-
ties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-looking
statement that may be found in this article.
SNN does not engage in providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities, strategies, or information
presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this article.
Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.gov and the Financial
Industry Regulatory Authority (FINRA) at http://finra.org.
The area has received extensive historical exploration and some drilling. Much of this
activity was undertaken in the 1970s to 2000 with a predominant focus on uranium
exploration.
Essex Minerals (Meryllion’s Farm-In partner) compiled and digitized the vast amount
of historical data and devised an exploration strategy which included soil sampling
and an IP Survey. Meryllion recently completed this program at a cost of $450,000
and the results far exceeded the company’s expectations, generating multiple high
resistivity copper/moly porphyry drilling targets for immediate drilling.
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof
(collectively “SNN”), and all information presented is for commercial and informational purposes only, is not investment advice, and
should not be relied upon for any investment decisions. We are not recommending any securities, nor is this an offer or sale of any
security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities
regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any
Website: meryllionres.com
specific company’s plans, or its ability to effectuate any plan, and possess no actual knowledge of any specific company’s operations,
capabilities, intent, resources, or experience. Any opinions expressed in this article are solely attributed to each individual asserting the
Contact Info: Richard Revelins same and do not reflect the opinion of SNN.
CEO/Director Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities
Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Forward-looking statements are based upon expectations,
rrevelins@peregrinecorporate.com estimates, and projections at the time the statements are made and involve risks and uncertainties that could cause actual events to
+1-310-405-4475 differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-looking
statement that may be found in this article.
IR Individual: Graham Farrell SNN does not engage in providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies,
securities, strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker,
Harbor Access or legal counsel before purchasing or selling any securities referenced in this article. Furthermore, it is encouraged that you invest care-
Graham.farrell@harbor-access.com fully and consult investment related information available on the websites of the SEC at http://www.sec.gov and the Financial Industry
Regulatory Authority (FINRA) at http://finra.org.
+1-647-530-1430
M
ost of the other microcap indices are market • On the final day of the quarter, all public com-
cap weighted, giving preference to larger panies:
companies with higher trading volumes, and º Between $10 and $300 million in Market
are reconstituted bi-annually or annually, versus Capitalization
quarterly. º Share price equal to or greater than $0.10
• Filed a 10Q or 10K in the preceding quarter
WHY MCRI
In my experience in the MicroCap space, the idea From there, the index comprises the Top 30
of “discovery” has been a singular driving force for companies from each sector based on 90-day share
me. Whether its helping folks discover new MicroCap price appreciation. At most, MCRI will consist of
investing strategies or discover new companies that 330 constituents, all equally weighted. While you
may not show on their screen. may expect most, if not all, the Top 30 for each
sector will have positive share price appreciation for
CRITERIA the quarter, but that’s not always the case, and in
my opinion what makes MCRI the purest index for
• U.S. (NYSE/AMEX, NASDAQ, OTCM) or Canada MicroCaps.
(TSX, TSX Venture, CSE, NEO)
• Primary Listing only (meaning, primary symbol
dual-listed companies
40 Planet
54 MicroCap ReviewReview
MicroCap Magazine www.SNN.Network
www.PlanetMicroCap.com
Q3 2022 Key Data Points
ADN Advent Technologies Holdings Inc. APRN Blue Apron Holdings Inc.
Utilities Consumer Cyclical
https://www.advent.energy/ https://investors.blueapron.com/
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
ARR:CA Altius Renewable Royalties Corp. BRMI:CA Boat Rocker Media Inc.
Utilities Communication Services
https://www.arr.energy/ https://www.boatrocker.com/home/default.aspx
BRAG:CA Bragg Gaming Group Inc. CCNC Code Chain New Continent Ltd.
Communication Services Communication Services
https://bragg.games/ http://www.ccnctech.com/
BRBS Blue Ridge Bankshares Inc. CDMN:AQL Canadian Manganese Company Inc.
Financial Services Basic Materials
https://www.mybrb.com/ https://www.canadianmanganese.com/
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
CHCI Comstock Holding Companies Inc. CVR Chicago Rivet & Machine Co.
Real Estate Industrials
https://comstock.com/ https://www.chicagorivet.com/
EAGR:CA East Side Games Group Inc. FSEA First Seacoast Bancorp
Communication Services Financial Services
https://eastsidegamesgroup.com/ https://www.firstseacoastbank.com/
EPIC:CNX Leviathan Natural Products, Inc. GDC:CA Genesis Land Development Corp.
Healthcare Real Estate
https://leviathan-naturals.com/ https://www.genesisland.com/
ESQ Esquire Financial Holdings, Inc. GIP:CA Green Impact Partners Inc.
Financial Services Utilities
https://esquirebank.com/ https://www.greenipi.com/
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
MAXX:CNX Max Power Mining Corp. MOVE:AQL PowerTap Hydrogen Capital Corp.
Basic Materials Utilities
https://maxpowermining.com/ https://powertapcapital.com/
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
OEG Orbital Energy Group Inc. PEX:CA Pacific Ridge Exploration Ltd.
Utilities Basic Materials
https://www.orbitalenergygroup.com/ https://pacificridgeexploration.com/
PMTS CPI Card Group Inc. REFI Chicago Atlatic Real Estate Finance Inc.
Financial Services Real Estate
https://www.cpicardgroup.com/ https://investors.refi.reit/
POWL Powell Industries, Inc. RGF The Real Good Food Company, Inc.
Industrials Consumer Defensive
https://www.powellind.com/Default.aspx https://realgoodfoods.com/
PQE:CA Petroteq Energy Inc. RMCF Rocky Mountain Chocolate Factory Inc.
Energy Consumer Defensive
https://www.petroteq.com/ https://www.rmcf.com/
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
RVV:CNX Revive Therapeutics SM:CA Sierra Madre Gold and Silver Ltd.
Healthcare Basic Materials
https://revivethera.com/ https://sierramadregoldandsilver.com/
SELF Global Self Storage Inc. TAAT:CNX TAAT Global Alternatives Inc.
Real Estate Consumer Defensive
https://www.globalselfstorage.us/ https://taatglobal.com/
TNY:CNX The Tinley Beverage Company Inc. VENA Venus Acquisition Corp.
Consumer Defensive Financial Services
https://drinktinley.com/ no good website, just email
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
Note: As of rebalance date 07/04/2022, please see SNN’s criteria for inclusion in the Planet MicroCap Index here: https://snn.network/key-criteria
pAyment
Market Making
for
order
Explained
flow
At Glendale Securities, Inc., we mainly make markets in OTC
What is a Market Maker firm? Explain the process including “taking
securities for our customers. We charge our customers a
a house position”.
commission for execution and use our market making capabilities
to facilitate customer executions.
T
here are wholesale market makers, boutique
W
markete are
makers,
often and
asked other
whytypes
we don’t
of market
offer send your order to an exchange or ATS, but those
makers.
commission
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like some
obtain
of the often charge the broker on a net basis for execution.
order flowonline
from other
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offer.
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not They can execute the order internally as a market
how
havecaninternal
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free maker, but that requires staff, technology, and risk
trading?
market makers
The answer
profittobythat
the question
vast volumerequires
of orders
a capital that may be too cost prohibitive. Another
discussion
received by ontaking
the practice
the otherof side
paymentof from
of order
the orders
flow, option is to send customer orders to a wholesale
and
sentatoclarification
them by the onreferring
when payment
broker fordealers.
order The
flow market maker who pays the brokerage firm for its
is
positions
paid to that
brokers.
wholesale
Many large
market retail
makers
brokerage
take arefirms order flow. If you must choose between the three
including
usually heldthefor
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you areof time,
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possibly
familiar
even options outlined above, receiving payment for order
with
just for
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market
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your flow for sending orders to a wholesale market maker
order,
typically
brokerage
make markets
firms have
in securities
a coupletooffacilitate
options,their seems like it’s the smartest option for the brokerage
each
customer’s
with their
orders.
own When
cost/profit
a boutique
structure.
market
Theymaker
can firm. The brokerage firm eliminates costs, doesn’t
like Glendale takes a house position, it is often for a
longer period of time. There are some positions that
Glendale has held for over 2 years.
80
68 microcap
Planet MicroCap
reviewReview
magazine www.PlanetMicroCap.com
www.SNN.Network
Why is it so difficult for investors to In general, what factors determine your
trade microcap stock at any brokerage bid and ask price of a stock you make a
firm? Are there specific restrictions or is market in?
it at the discretion of the brokerage firm?
Client orders are the primary driver of bid and ask
The securities that are tradable is at the discretion prices. The firm will also represent its interest at
of each brokerage firm. Strict regulations on OTC certain levels, but typically we will be more active
trading and deposits have caused many broker when we have more orders to represent.
dealers to exit the business entirely, rather than deal
with the additional compliance requirements. How do market makers interact with one
another?
How has regulatory oversight and new
rules impacted microcap trading? It’s not uncommon to have 2-3 wholesale market
makers, a couple of boutique firms and a couple of
We think that microcap trading has been impacted ATS entities registered in an OTC security. An active
by heightened regulatory oversight over the past security will usually have over 5 MPIDs registered.
several years. Many brokerage firms have now
turned off all trading in OTC securities presumably What’s the difference between agency
due to the strict regulatory oversight. There are trades with commission or principal
large online firms that don’t allow any trading and trades with a markup/markdown?
large full-service firms that don’t allow any OTC
trading. Compliance departments at these firms As a dealer we can either send the order to another
claim that microcap stocks are illiquid and can be dealer or ATS for execution acting as an agent, or
easily manipulated for fraudulent purposes. While we can execute the trade as a principal internally.
this may be true in part, there are better ways than Some clients think that acting as agent is better
turning off trading to deal with these issues. Ironi- because the firm is not trading against the order.
cally, as more firms turn off OTC trading, it will likely However, its often misunderstood that regardless of
further decrease liquidity. Regulators should take how we execute the order, we are required to pro-
notice that if they overregulate this business, more vide best execution to the client. In addition, we are
and more brokerage firms will exit the business not allowed to trade for our own account at a price
instead of dealing with overburdensome compliance and size that could execute a client order unless we
requirements. simultaneously fill the client as well. Ultimately, we
are making markets to facilitate client orders, not to
How would you best describe the daily make more money off the same order.
activities of a market maker?
How does a market maker make money
Market makers directly represent quotations without trading stocks?
going through an intermediary, bids/offers for client
and firm interest in a security. During that quotation We make markets primarily to facilitate our cus-
process, market makers take positions both long tomer orders. We make commission or a markup/
and short in a security in the regular course of markdown (which is charged at the same rate as a
making a market. commission) on the trades we execute. Sometimes
we take positions in stocks that we make a market
What differentiates Glendale from its in and sometimes we profit or have a loss when the
peers? Are there any peers? security increases or decreases in price respectively.
There are surely peers depending upon the metrics For more information: www.GlendaleSecurities.com
one uses to compare dealers. However, Glendale
believes that it differentiates itself from other market
makers by taking a long-term interest in its client’s
securities when it facilitates the execution of orders.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
On-demand
Accounting and
Finance
5 Things for Microcaps to Consider
A
s former corporate finance executives and
current partners of an on-demand CFO
services provider, we have experienced the
search for good finance, accounting, and operations
support from both sides of the table. Choosing the
right finance and accounting staff solution for your
business is a matter of balancing your immediate
needs and future plans with your resources. In the
following article we explore a number of items to
consider as you explore your options to meet your
finance, accounting and compliance needs.
It’s chic to be bearish about China these days. You don’t even need
to look at the stock charts. Just sample a few of the headlines.
“E
uropean businesses are rethinking their plans Strictest COVID Zero City.” Business Insider informs
for a ‘closed’ China,’” states a recent report us that the next generation of Chinese has turned
from CNBC. “Tech Companies Slowly Shift its back on American education, “Chinese students
Production Away from China,” according to the have helped bankroll the US economy. Now fewer
New York Times. Bloomberg offers up a breathless want to study here, and it risks America’s position as
account, “This is What Life’s Like in the World’s a global leader.” While the Atlantic speculates that
China cannot be ignored as a force in the world. My China remains “open for business,” but only on
thesis is that the door to engagement with China China’s terms. MNCs still have very substantial
remains half open, not slammed shut. market opportunities, but only if their business
growth is aligned with China’s economic policy and
To frame this discussion, it is helpful to think about industrial planning goals and if they are willing to
the phrase “open door” and how it resonates differ- play by Chinese rules. Businesses that threaten
ently in American and Chinese ears. sectors deemed vital to core interests or offend
Chinese sensibilities, even if unwittingly, will face
To Americans, an “open door” to China suggests severe consequences.
free access to markets, rules-based trading systems,
market-based economics, and the chance, if we are Businesses must adapt and adjust their risk calcula-
honest, to reap immense riches from China’s massive tions for an era of sustained heightened geopolitical
consumer population and economic progress. tensions. The recent conflict in Ukraine has shown
OPPORTUNITY #1: PLAY GROWTH OF SOUTHEAST The issue of climate change cannot be solved
ASIA without China’s full engagement and leadership. A
complete break in relations with the West would
Southeast Asia is positioned to be a primary doom any chance of passing an inhabitable planet to
beneficiary of the quest for supply chain resilience. our children. According to the Rhodium Group, China
Countries like Vietnam, Indonesia, Malaysia, and the emits 27% of the world’s greenhouse gasses, more
Philippines tout their affordable labor forces, improv- than the entire developed world combined.
ing logistics and infrastructure, and favorable policy
orientation towards the U.S. and Europe. While none Fortunately, China is also the world’s leader in green
has the scale to displace China’s dominant position, energy production and installation, with wind and
they will all benefit from capital and western exper- solar installations forecast to jump by 25% in 2022,
tise inflows. to a record 156 Gigawatts, per the China Renewable
Energy Engineering Institute.
The IMF has forecast that China’s share of global
export growth will fall from #1 at 6.6% in 2016-21 China’s role will be essential in decarbonizing the
to #8 to 3.4% from 2022 through 2026. Over that global south and preventing them from adopting
same period, Southeast Asia’s share is forecast to the carbon-intensive development and consumption
rise to the #1 position with 5.6% growth between model of the US, Europe, China, and India. The
2022 and 2026. world’s best hope for limiting climate change is to
help the global south go green before they get rich.
Southeast Asia also has demographic tailwinds in
its favor, with a far younger population than North While developed economies have an essential
Asian countries and only 50% of the people living in role in this transition, only China has the operating
urban areas. Its consumers have a ravenous appetite scale and ability to deliver products at a price
for consumer goods and services that will support point to meet the demands of this remarkable
a more balanced economic development profile as industrial transformation. While Tesla may lead the
a more significant proportion move into the middle EV scoreboard in U.S. and Europe, they will never
class. Traveling to Vietnam today recalls China’s be more than a rounding error in sub-Saharan Africa.
hunger for progress and breakneck expansion 15 Chinese manufacturers have a far better chance of
years ago. producing products adapted to the local realities
and economics of the developing world. And that is
In addition, Southeast Asia is embracing digitization a massive opportunity over the next two decades.
at hyperspeed. Unlike China, Southeast Asia uses
the same core digital architecture and applications OPPORTUNITY #3: WILL CHINA’S CONSUMER
as Western businesses and consumers. But they CLASS TAKE UP THE SLACK?
also have a thriving ecosystem of localized digital
business models and applications and a younger The case for exploding Chinee consumer demand is
generation fully embracing start-up culture. not a matter of if but rather when.
According to a study by Google, Temasek, and Fundamentally, China’s economy cannot continue
Bain, the region’s digital economy is forecast to to grow without a profound rebalancing in GDP
grow from $170 billion in 2021 to $1 trillion by 2031. distribution. China’s consumers made up just 38.5%
Global venture firms have taken notice, pouring of the GDP in 2021, compared to 68% of the GDP
nearly $26 billion into the region in 2021, resulting in the U.S., per the CEIC. China’s gross domestic
in 25 new local “unicorns “in just one year. While savings rate is completely abnormal compared to
the pace of investment has slowed in 2022 as many traditionally thrifty North Asian neighbors, at 45%,
of these companies seek to demonstrate a path to versus 35% in Korea and 25% in Japan.
profitability, the level of innovation and energy is
undeniable. These excess savings have funded the ability of local
On a longer-term basis, the outlook for growth in Bernstein is a distinguished expert with deep knowledge of the China and
U.S. financial ecosystem with experience extending across Asia. Europe
the services sector remains robust. China’s rapidly and Africa. Industry experience encompasses technology. retai l. manufac-
aging population and the rebalancing from capital turing, hospitality, pharmaceutical and real estate. Bernstein directs a
investment and exports will drive the share of global team, featuring highly trained PCAOB and SEC accounting experts
and financial consultants working in New York as well as Beijing. Tianjin.
GDP to services, as it has in every Asian tiger. This Shanghai. Shenzhen. Hangzhou. and Guangzhou.
transition will create enticing opportunities for savvy
Additionally, Bernstein is considered a valuable thought leader and news
global companies with robust localization strategies commentator. He has published articles for Forbes.com and China Daily
and teams that can sate the demand for high-quality and is a frequently called upon source by prominent media such as China
Global Television Network. CNBC. Bloomberg TV. The Financial Times.
services at a China price point. The South Chino Morning Post. The Wall Street Journal. Yahoo! Finance.
and more regarding Chinese IPOs. China’S economic growth. investment
appetite, innovation trends, corporate governance, SEC regulations and
Why I Am Still Optimistic? more.
In summary, the opportunities for engaging with Bernstein graduated from the University of Maryland with a B.S. in
Accounting. Currently, he resides in New York City with his wife and children.
China continue to be substantial. But the bar for
success is higher than ever before. About MBP
Marcum Bernstein & Pinchuk LLP (MBP) offers specialized audit and
advisory services to support SPAC sponsors and SPAC targets in Asia.
For my company MarcumAsia, doing business in MBP and its parent company, Marcum LLP. have been involved in more
SPAC transactions than any other audit firm. MBP is the only audit firm to
China has been an unmitigated success, with record have a dedicated SPAC team for Asia. MBP performs all audits for Marcum
revenues in each of the past five years despite all in Greater China. and MBP is a top-five auditor for Chinese companies
listed in the United States.
the political drama and regulatory conflict in our
industry. The dedicated SPAC team has worked with SPAC sponsors, underwriters,
and targets. MBP draws on wide-ranging experience with the initial publiC
offerings and subsequent business transactions forged by such companies.
On a personal note, marrying my wife, born and MBP has designed its audit platform to deliver the technical expertise.
raised in China, was the best decision I have made efficiency. and urgency required by SPAC IPOs. This includes high-quality.
PCAOB-compliant audits for private Asian companies that are contemplat-
in my life, providing me with years of joy and my ing entering a SPAC merger.
treasured youngest son. As a microcosm of the
Website: U.S.: https://www.marcumbp.com:
US-China relationship, we often disagree profoundly China: https://cn.marcumbp.com
about how we view the world. Still, we always find a
way to compromise and realize that our lives would
be deeply impoverished without each other.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Lucosky Brookman LLP, a leading corporate law firm, is devoted to contributing time and resources to giving
back to the community through a hands-on approach to charitable activities. Since 2014, Lucosky Brookman,
together with its friends, clients and colleagues, has donated over $775,000 to charitable endeavors
throughout the world. In 2017, Lucosky Brookman founded the Lucosky Brookman Foundation, a public 501(c)
(3) charity, through which the Firm uses the power of philanthropy to impact the lives of those less fortunate.
Lucosky Brookman invites you to join it in supporting The Save A Child’s Heart Foundation (SACH). SACH
is a global humanitarian organization, with a mission to provide life-saving cardiac care to children of all
backgrounds, regardless of race, religion, gender, nationality, or financial status, who suffer from congenital and
acquired heart defects and have no access to quality care in their native countries. SACH is
also committed to providing training to doctors from developing countries to set up local centers
of competence. To date, SACH has have saved the lives of 5,000 children from 58 countries and has
trained over 120 international medical personnel.
US CANNABIS
valuations
continue to decline,
as does the broader
market
P
ost-pandemic new issues have arisen for between 1% and 2% so far in 2022. Canaccord Genu-
the sector, inflationary pressure on overall ity estimates the total legal cannabis sales in the US
consumer spending, multi-state wholesale are currently run rating at close to US$25B.
pricing declines, a mess in the overall California
landscape and a scarce number of investors with Rising Inflation and wholesale pricing declines
a never-ending rising cost of capital. However, we likely to remain: All operators throughout 2022
are staying pot committed as the long-term growth have been negatively impact that 40+ year high
prospects of the sector have never been better. inflation has had on consumer spending habits.
Most wholesale markets in the United States are
Overall market trends: continuing to experience price compression. In some
instances, this is a result of general market satura-
Macro sales are still strong and GROWING: Based tion mainly in California and the overall impact of
on retail-level sales data, macro sector sales have illicit sales in many states.
experienced average month over month growth of
Top 5 MSOs are well positioned amid a slowed highs of early 2021 and >50% below the multiples
environment: The 5 largest MSOs are profitable, of more traditional CPG companies. Until the sector
have access to capital and are still operating with attracts more institutional capital or a change at
relatively attractive gross margins of close to ~50% the federal level, we believe valuations may still be
and adj. EBITDA contribution just under 25%. susceptible to downward pressure. MSOs still have
attractive risk/reward prospects, given that company
Sector valuations are low and require federal fundamentals.
legislative change. Overall sector valuations are
Seth Yakatan
particularly sensitive to the prospect of legislation
C-Level Corporate Finance Specialist
progressing at the Federal level. All participants in • Instituted a turn around at Eaze since 2019
the industry must plan that the likelihood of cannabis • Raised in excess of $300.0 million
• Culminating in Eaze acquiring multi-state retail leader Green Dragon,
becoming legalized or de-scheduled in the foresee- creating nation’s largest MSO Delivery operation and biggest California-
able future remains remote. headquartered MSO
• Over the past eighteen years as a co-founder of Katan Associates (KAI),
Seth has successfully structured and managed strategic alliances and deals,
Valuations are at all-time lows: Per Canaccord based on his insight and expertise in the US and Global Cannabis and Life
Science sectors
Genuity the average MSO currently trades at 4.4x its
2023 EV/EBITDA – over 70% lower from the sector
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Public MiCROCap
puBliC Microcap
Biotech COMpaNy
BiOTECh Company
Board iSSuES
BOaRD Issues
A ShORT
a Short pRiMER
Primer
82 MicroCap
52 Planet MicroCap
ReviewReview
Magazine www.PlanetMicroCap.com
www.SNN.Network
create the enthusiasm or creativity needed to raise As I mentioned at the beginning of this article, Boards
capital or create a viable strategy. A corollary to this are critical to the success of biotech companies. In
statement is whether Board members have brought theory, they should work with the CEO and senior
in investors to help finance the company. I once had management to help move the company forward
a new Board member who thought the company both strategically and financially. Sadly, this is not
was on the verge of getting a breakthrough drug always the case. Self-interest, greed and incom-
approved for a very important indication. During the petence are among the most common reasons for
interview process he bragged about his net worth failure in this regard. Many times, the issues listed
but when it came time to help finance the company, above may be mitigated by a CEO willing to put in the
he did not participate because he realized the drug time to communicate and develop relationships with
was not going to FDA for at least two years. individual Board members. I tried to accomplish this
with weekly calls when needed or occasional lunches
What are the Board dynamics? with local Board members. It is important to realize
that in most cases it is extremely difficult to change
You can learn a great deal by talking with individual Board members as a senior manager. Most Boards
Board members and if possible senior managers are voted in at annual Board meetings. I encourage
about Board members interactions with one another. you to look at the difference between a plurality vote
One time I was interviewing with a Board member, or a majority vote for Board membership to see how
and he called a fellow Board member a glorified difficult it can be to vote someone off a Board.
paint salesman! That should have been enough of
a red flag to have me question taking the position. In summary, completing due diligence on the
Also, the flip side is also important. In a different Board you will be working with is a critical piece in
situation, I was brought in as the new CEO because determining your success with your new company.
the former CEO was being sued by investors. When Obviously, it is not the only factor but be assured a
I arrived at my first Board meeting the individual was competent and helpful Board will go a long way on
still on the Board! He was a friend of the Chairman of your journey.
the Board. It took me six months to have him resign
John N. Bonfiglio PhD MBA and has over 30 years’ experience in the
from the Board.
biotech/pharmaceutical industry Including over 20 years as a C-level execu-
tive in the biotech industry.
What skill sets do individual Board
Dr. Bonfiglio started his career with 11 years at Allergan pharmaceuticals.
members possess? He spent 3 years at Baxter HealthCare before starting a career in small
biotech companies. He rose to the position of CEO at Peregrine Pharma-
ceuticals where he turned around the financially strapped public company.
Board memberships sometimes have interesting
histories. The composition of membership may have Dr. Bonfiglio was named COO at Cypress Bioscience while the company
was reinventing itself as neuro-pharmaceutical company. He then joined the
been shaped by personal friendship, financings, Immune Response Corporation as CEO and was responsible for raising over
founders, or politics. A strong Board should have $50M and restarting clinicals in the HIV and MS areas.
members that know biotech, drug development and/
As CEO at Argos Therapeutics a privately held oncology company, he
or financing public companies. Having members that raised $35M through a series C financing. His tenure at Argos produced
have no experience in any of these areas makes clinical data which led to an IPO and subsequent financings.
for a difficult board for management. I once had a Following Argos, he became President and CEO at Oragenics in Tampa, Fl.
Board member who was skilled CPA accountant. Here he completed two strategic deals with Intrexon Corporation, raised
$29M relisted the company on the NYSE:MKT and refocused the company
He had been on several Boards of companies that on new novel and proprietary antibiotics
actually had a revenue stream, and he knew the
Dr. Bonfiglio was the COO at TapImmune where he was responsible for
audit process and public company filing processes starting a clinical program, raising capital and relisting the company on
exceptionally well. He was completely unaware of Nasdaq. The company is now known as Marker Therapeutics (MRKR
the risk profile of biotech companies. Every financing -Nasdaq).
opportunity I presented he balked at because he Dr. Bonfiglio has held independent Board positions at GT BioPharma
couldn’t understand the cost of capital for a biotech (GTBP), Microlin and Genprex (GNPX).
company with no products approved. This led to He recently joined Sequella a private company developing new therapies
delays, much aggravation and a divided Board. If for Multi Drug Resistant tuberculosis as an executive Board director.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities
Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and uncertain-
ties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-looking
statement that may be found in this article.
SNN does not engage in providing advice, making recommendations, issuing reports, or furnishing analyses on any of the companies, securities, strategies, or information
presented in this article. SNN recommends you consult a licensed investment adviser, broker, or legal counsel before purchasing or selling any securities referenced in this article.
Furthermore, it is encouraged that you invest carefully and consult investment related information available on the websites of the SEC at http://www.sec.gov and the Financial
Industry Regulatory Authority (FINRA) at http://finra.org.
gETTiNg
GETTING STaRTED
STARTED
ON ESg
ESG DiSClOSuRES
DISCLOSURES
ThE
The SEC’S
SEC’s NEw
New ENviRONMENTal,
Environmental, SOCial
Social aND
and gOvERNaNCE
Governance (“ESg”)
(“ESG”) RulES
Rules
T
he
he SEC
SEC recently
recently proposed
proposed aa series
series of
of new
new Task
Task Force
Force on
on Climate
Climate Related
Related Financial
Financial Disclosure
Disclosure
rules
rules which
which will
will significantly
significantly increase
increase disclosure
disclosure (“TCFD”)
(“TCFD”) and
and the
the Greenhouse
Greenhouse GasGas Protocol
Protocol (“GHG
(“GHG
requirements
requirements that
that relate
relate to:
to: (1)
(1) climate
climate related
related Protocol”)
Protocol”) emissions
emissions reporting
reporting framework.
framework. AsAs aa law
law
risks,
risks, (2)
(2) greenhouse
greenhouse gas gas emissions,
emissions, andand (3)
(3) climate-
climate- firm
firm focused
focused on
on providing
providing services
services and
and counsel
counsel toto
related
related financial
financial metrics.
metrics. The
The SEC
SEC partly
partly modeled
modeled the
the microcap
microcap space,
space, we
we fully
fully embrace
embrace the
the challenge
challenge
the
the proposed
proposed climate
climate disclosure
disclosure framework
framework on on the
the these
these new
new requirements
requirements pose
pose for
for the
the microcap
microcap
72
88 MicroCap
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ReviewReview
Magazine www.PlanetMicroCap.com
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space. These rules will apply to the public compa- proactively attempting to mitigate any potential risk
nies in the microcap space, along with the funds that their operations and suppliers use any forced/
that invest in these companies. If you don’t intend to bonded labor or child labor. This is usually monitored
read the rest of the article, here’s the takeaway: the by quarterly audits done by the company.
SEC is increasing your disclosure requirements by
adding an ESG requirement. The “Governance” factor is measured by how the
company is run by the board of directors and tends
What exactly are ESG disclosures? to be a bit broader than the previous two. When it
comes to governance, companies usually focus on
ESG is the acronym for the three required factors: making sure that their board is diverse, that they
environmental, social and governance. First, let’s have strong ethics and compliance programs in
discuss the “Environmental” factor. According to place, and that there is transparency. When it comes
the SEC, “The environmental factor usually focuses to board diversity, companies try to show that it is
on a company’s impact on the environment or the composed of people who bring a diversity of experi-
risks and opportunities associated with the impacts ence, expertise, and ethnicity to the table. Ethics
of climate change on the company, its business and and compliance programs also play a big role in
its industry”.1 Most companies approach this factor governance because they ensure that the company
by putting in place a plan for the near future and is complying with all applicable laws and regulations.
listing goals that they plan to reach by the desired These programs also limit the risk of bribery, cor-
date. One of the most common plans is to reach net ruption, and insider trading. To show transparency,
zero emissions by 2050. The environmental factor companies tend to disclose any lobbying expenses
is usually broken down into five categories: energy or political contributions, tax information, and execu-
consumption, water consumption, environmental tive compensation.
management, CO2 emissions, and waste. The most
common measurables that can be found across the How will ESG impact the microcap space?
board are scope 1 and scope 2 emissions, which
themselves are both direct and indirect GHG emis- While ESG hasn’t hit the Microcap space hard
sions respectively. just yet, it is the next wave. Larger companies are
already dealing with it. The trend is clear. First the
The “Social” factor usually focuses on a company’s rules, which we just discussed. That empowers
diversity and inclusion policies, health and wellbeing funds – for example, BlackRock has said it will use
of their employees, and human rights. Companies the power of institutional “votes” against boards of
tend to disclose statistics that show the percentage directors not aligned with its ESG imperatives. ESG
of their workforce that are minorities such as women focused hedge funds (yes, those already exist) have
or people of color, along with the percentage of them begun forcing board turnover through the proxy
that are in management positions. One of the ways process. Litigation has inevitably followed. Attorneys
that the health and wellbeing of employees is usually general have initiated lawsuits claiming companies
addressed is by aiming to have a safer workplace. misled shareholders by not appropriately disclosing
Companies typically accomplish this goal by having the companies’ understanding of climate change
safety measures in place and providing employees risks. Greenwashing claims have triggered state laws
with the appropriate amount of training needed to and the federal Lanham Act. Some public companies
complete their jobs efficiently and safely. Companies across various sectors have been sued for failing to
show how safe their workplace is by disclosing maintain diverse boards.
statistics that show work related injury and fatalities
rates. The second way that companies address health The good news is there is still time. The Rules have
and wellbeing of employees is by having zero- been proposed but haven’t gone into effect yet.
tolerance policies for harassment and by mandating There should be a grace period once they are in
harassment training for employees. Companies effect. But the time to act is now. In fact, some U.S.
show that they are proponents of human rights by companies may well have to report on ESG already.
The Council of the European Union and the Euro-
1 pean Parliament reached a provisional agreement on
https://www.investor.gov/introduction-investing/investing-basics/
glossary/environmental-social-and-governance-esg-investing
a corporate sustainability reporting directive (CSRD)
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
pullp.com
T
his leads to company executives feeling like out exception. Unlike your home or auto insurance,
they didn’t get a fair shake at the market, were and in some cases even your basic Businessowners
accept the terms of an insurance contract that package (e.g., general liability), you can’t create an
they don’t fully understand, and they feel like they efficient, effective, and competitive bidding process
paid way too much for it. via online quoting platforms, or by simply just asking
several different insurance professionals to provide
How it usually happens… quotes.
Most companies know that in order to attract high Next, you’ve got quotes, and all of them stink. Now
caliber board members and corporate officers what? Chances are, whomever you’re working
proper insurance coverage is, or will be, required. with is going to tell you they’ve submitted to every
Budgets are established for legal advice, accounting, insurance carrier there is, and “I’m sorry, but this is
transfer agents, Edgar filing, investor relations, public just how much it costs…”. Not surprisingly, getting
relations, travel, etc. Usually, insurance is a line item your company in front of the right insurance carriers
in that same budget, but often the estimated cost is is far more important than getting in front of “all” of
calculated using some technique akin to a “finger in them. In most cases, this is where the breakdown
the wind.” Eventually, the time comes to start the occurs, and naturally you’re relying on someone
process of getting quotes, and this is where the fun else’s advice. This is why having the right insurance
(and frustration) begins. broker is so important. For MicroCap and SmallCap
companies this can be a real challenge. This seg-
Where do you begin? Almost everyone knows an ment of the specialty insurance market is dominated
insurance broker or agent of some kind, so naturally by massive brokers whose priorities are elsewhere,
that’s a common starting point. The problem is, i.e., focusing on their larger clients where the
almost no one knows an insurance broker or agent premiums are higher (and the commissions). The
that actually understands the nuanced public alternative to one of these large providers is often a
company insurance market. This type of coverage much less experienced “generalist” insurance broker
is secured in a specialty marketplace and requires that might give you all the attention you deserve, but
experienced and qualified brokers and insurers, with- they’re walking into the market blindfolded.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Post-Pandemic Hong
Kong Moves to Fortify
Status as International
Financial Hub
Over the past two years, Hong Kong’s economy has been crushed by
economic disruptions from the Covid pandemic and market volatility
fuelling speculations the SARs will end the year in a recession.
W
hile the majority of the world had already saw 47 IPOs raise US$8.8 billion, the lowest since
lifted their strict pandemic controls, Hong 2013. Homecoming listings continued to drive IPO
Kong only recently removed its strict quar- activity with eight US-listed Chinese companies listing
antine measures. The hesitancy to open up along with in Hong Kong in the first 9 months of the year. The
the rest of the world put extreme pressure on Hong homecoming listings have a combined market capi-
Kong’s status as an international financial centre. talisation of over HKD470.0 billion and contributed
Furthering these concerns is Hong Kong dropping to to more than 30% of total IPOs’ market capitalisation
fourth place in the 32nd edition of the semi-annual year to date. While 27 new listings in the third
Global Financial Centres Index while Singapore moved quarter raised a total of US$6.6 billion, almost three
up to the third position. As businesses faced a string times the funds raised in the first half, appetite for
of disruptions, tourism remained at a standstill and IPOs remains weak amid the market volatility.
mass international events were eliminated, the labor
force shrank to a decade low with top talent depart- Having a pipeline of more than 140 listing applications,
ing to rival economies such as Singapore, Thailand including China concept stocks, biotech companies,
and many other western markets. and a few potentially huge listings, Deloitte’s CMSG
forecasts that 70 IPOs will raise at least HKD110
Further weighing on the markets is an uncertain billion in Hong Kong by the end of 2022. Even as the
global economic outlook, rising interest rates, a recent debuts from electric-vehicle maker Zhejiang
dearth of big IPO offerings and continued Covid-19 Leapmotor and China Vanke’s property service unit,
concerns in China which pushed the Hang Seng Onewo, struggled to raise funds at the lower end of
Index down 26 percent for the year, as of the end of their pricing, companies set to list in the city include
September. The Hang Seng Index is currently sitting Betters Medical Investment Holdings, CALB, Flowing
at its lowest level since October 2011 and is one of Cloud Technology and AIM Vaccine.
the worst-performing major benchmarks globally.
Widely sought after by the market in Hong Kong and
Despite the challenging market conditions, Hong overseas, Flowing Cloud Technology, is highlighted
Kong was able to take fourth place in IPO funds as Hong Kong’s first metaverse stock. The company
raised in the first nine months thanks to renewed ranks first in China’s AR/VR content and services
activity in the third quarter and a blockbuster listing market, accounting for 13.5 percent of the market
from China Tourism Duty Free, the biggest IPO of the share. Its IPO officially launched on 29 September
year. For the first nine months of 2022, Hong Kong and is expected to raise around US$ 100 million. On
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Leslie Richardson does not own any of the stocks mentioned in this article
www.PlanetMicroCap.com Planet MicroCap Review 95
insi g hts
// By Richard Revelins
“An Exercise in
Clear Thinking”
Here’s an oldie but a goodie . . . What weighs more, a pound of
bricks or a pound of feathers?
M
ost people’s natural inclination is to say, successfully employed for generations to torment
“obviously bricks weigh more than feathers”. small children and semi-inebriated pub goers, dis-
This is true, a brick weighs more than a guised as an exercise in clear-thinking. In retrospect
feather, but a pound of anything is still a pound, so maybe the question should be “Would you rather
they weigh exactly the same. This question has been have a pound of bricks, or a pound of feathers?”
aSk
AsK MR.
Mr. wallSTREET
Wallstreet
IF
If SHORTS
shorts ARE
are THE
the ONLY
only NATURAL
natural
BUYERS…WHY
buyers…why DO
do THE
the MAJORITY
majority
OF
of INVESTORS,
investors, SHAREHOLDERS,
shareholders,
C
c LEVEL
level MANAGERS,
managers, AND
and BANKERS
bankers HATE
hate
SHORTS
shorts SO
so MUCH?
much?
I definitely
definitely have
here
here goes:
have my
it goes:
my own
own opinion
opinion about
about shorts
shorts and
and
Since
Since my
my early
early days
days on on Wall
Wall Street
Street “shorts”
“shorts” have have
been
been hated,
hated, feared,
feared, disrespected,
disrespected, reviled reviled and and forfor mi-mi-
crocap
crocap & & smallcap
smallcap CEOsCEOs and and their
their boards,
boards, simply
simply the the
bane
bane ofof their
their existence.
existence. Shorts
Shorts get get blamed
blamed by by CEOs
CEOs
for everything wrong with their underperforming
for everything wrong with their underperforming
stocks.
stocks. Poor
Poor performing
performing CEOs CEOs conveniently
conveniently blame blame
price
price drops
drops on on “the
“the shorts”
shorts” and and farfar too
too many
many times
times
investors
investors areare willing
willing to
to accept
accept this this excuse
excuse hook hook lineline
and sinker. “The illegal naked shorts
and sinker. “The illegal naked shorts are killing myare killing my
stock”,
stock”, II wish
wish II had
had aa buck
buck for for every
every timetime II heard
heard that that
said
said by
by aa pressured
pressured CEO.CEO. How How about
about CEOs CEOs during
during
interviews
interviews withwith analysts
analysts trying
trying to to defend
defend how how great
great
aa job they’re doing while sitting with a
job they’re doing while sitting with a giant reported giant reported
short
short by
by sellers
sellers who
who have
have legally
legally borrowed
borrowed shares. shares.
Most
Most CEOs
CEOs hate
hate toto answer
answer questions
questions about about their
their
stock
stock being
being shorted.
shorted. Many
Many CEOsCEOs go go to to great
great lengths
lengths
spending serious money hiring
spending serious money hiring consultants orconsultants or
numerous
numerous investor
investor relations
relations firms,
firms, oror lawyers
lawyers or or buy
buy
services
services specializing
specializing in in identifying
identifying the the shorts
shorts in in their
their ItIt has
has been
been my
my experience
experience thatthat short
short players
players
stocks.
stocks. Behind
Behind close
close doors
doors and and within
within the the board
board do
do deeper
deeper due
due diligence
diligence than
than longs,
longs, even
even more
more
room
room walls, identifying who is shorting stock leads
walls, identifying who is shorting stock leads to to than buy side analysts. Shorts have
than buy side analysts. Shorts have their own their own
ordering
ordering shareholder
shareholder listslists from
from DTC DTC andand NOBO
NOBO lists… lists… criteria
criteria beyond
beyond reading
reading company
company financials,
financials, press
press
How
How much
much timetime is
is actually
actually spent
spent watching
watching changeschanges releases,
releases, SEC SEC filings
filings and
and conducting
conducting interviews
interviews with
with
in
in shareholders?
shareholders? The The rallying
rallying crycry inin the
the board
board room:
room: management
management via via conference
conference calls
calls or
or in
in person.
person. In
In
Let’s
Let’s fight these shorts any way we can after all it’s
fight these shorts any way we can after all it’s particular
particular shorts
shorts read
read and
and track
track public
public press
press releases
releases
our
our responsibility,
responsibility, but but is
is it?
it? especially
especially onesones that
that include
include financial
financial projections,
projections,
references
references to to milestones,
milestones, or or reference
reference to to potential
potential
II ask
ask myself,
myself, what
what do
do shorts
shorts know
know that
that no
no one
one else
else corporate
corporate developments
developments that that have
have caused
caused stocks
stocks
knows?
knows? to
to hithit new
new highs.
highs. Stocks
Stocks that
that advance
advance in in price
price for
for
no
no apparent
apparent reason
reason often
often times
times make
make itit onto
onto the
the
86
98 MicroCap ReviewReview
Planet MicroCap Magazine www.SNN.Network
www.PlanetMicroCap.com
shorts radar and continue to be monitored. Shorts private placement with the company or find a block
traditionally follow big gainers with increasing for sale from an insider, or watch the market makers
liquidity. Shorts are diametrically opposite of longs until a block shows up. Most longs hit the bid or
in that longs buy low hoping to sell high while shorts use market orders to get out which in turns feeds
sell high hoping to buy low. Both can be profitable, stock for shorts to cover. So, there’s the outcome of
and both have varying degrees of risk but historically shorting and getting paid to wait for the inevitable.
when the “great news” press releases and buying Shorts are the only natural buyer in town, in many
dries up since profit taking occurred market support cases they are the market equalizer. It’s not that they
for buying the stock slows or disappears. Slowly but believe “long is wrong” but rather they continue to
surely the stock drops from its new highs therefore seek the justification for unwarranted price increases.
making it difficult for a stock to hold a strong bid. Furthermore, every time a short sell occurs the sale
Some say that shorts keep companies honest and provides cash to the seller which is available when
clearly bet against hype and promotion. necessary. Of course short players can get caught
and get squeezed by the longs as well, which is the
What happens when stocks lose their momentum, back and forth, give and take in the market between
and their price begins to fall? Some longs may cost longs and shorts! And that’s what I think about
average down and we know how that usually ends. shorts!
The shorts, patiently waiting for this moment, after
Ask Mr. Wallstreet is Shelly Kraft. He began on Wall Street in 1984 as a
having sold on the offer patiently into buying, can
penny stockbroker, investment banker, rising to President of Emanuel &
now sit and pick their spots and buy back to cover Company, a boutique IPO underwriter and microcap market maker.
their shorts on the bid or below, or even buy in a
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Advances in MRI to Evaluate Tissue Function ple. It is based on over twenty years of research and
development beginning at Massachusetts General
In the 1990s, advances in MRI technology made Hospital/Harvard Medical School and brought to
it possible to collect images fast enough to also fruition by Dr Kathleen Schmainda, Professor of
monitor tissue function in real time. For example, Biophysics at the Medical College of Wisconsin. IB
images can be collected every second while an MRI Neuro has been proven through its use in several
contrast agent is being administered. Using this multi-center clinical trials for brain tumor patients,
approach, the delivery of blood to brain tissue may the only MRI perfusion software used in this setting.
be monitored and abnormalities, such as stroke Moreover, IB Neuro is the only clinical (FDA cleared)
and aggressive brain tumors, evaluated, providing perfusion MRI software that provides quantitative
information not available with standard MRI scans results that have been validated with spatially-
of anatomy. Yet, while straightforward in principle, matched tissue biopsies. It is therefore no surprise
deriving accurate and quantitative measures of brain that head-to-head comparison of IB-generated
perfusion from the dynamic MRI signal is complex. perfusion images outperformed leading competitors
This is where Imaging Biometrics stepped in. as described in a recent peer-reviewed publication.
IB’s ability to quickly respond to new advances in the For more information about Imaging Biometrics,
field makes it a company that is here to stay. While please visit: www.imagingbiometrics.com
DISCLAIMER AND FORWARD-LOOKING STATEMENTS NOTICE: This article is provided as a service of SNN Inc. or an affiliate thereof (collectively “SNN”), and all information
presented is for commercial and informational purposes only, is not investment advice, and should not be relied upon for any investment decisions. We are not recommending
any securities, nor is this an offer or sale of any security. Neither SNN nor its representatives are licensed brokers, broker-dealers, market makers, investment bankers, investment
advisers, analysts, or underwriters registered with the Securities and Exchange Commission (“SEC”) or with any state securities regulatory authority.
SNN provides no assurances as to the accuracy or completeness of the information presented, including information regarding any specific company’s plans, or its ability to
effectuate any plan, and possess no actual knowledge of any specific company’s operations, capabilities, intent, resources, or experience. Any opinions expressed in this article
are solely attributed to each individual asserting the same and do not reflect the opinion of SNN.
Information contained in this presentation may contain “forward-looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the
Securities Exchange Act of 1934. Forward-looking statements are based upon expectations, estimates, and projections at the time the statements are made and involve risks and
uncertainties that could cause actual events to differ materially from those anticipated. Therefore, readers are cautioned against placing any undue reliance upon any forward-
looking statement that may be found in this article.
The company profiled has paid consideration to SNN or its affiliates for this article. SNN does not engage in providing advice, making recommendations, issuing reports, or
furnishing analyses on any of the companies, securities, strategies, or information presented in this article. SNN recommends you consult a licensed investment adviser, broker, or
legal counsel before purchasing or selling any securities referenced in this article. Furthermore, it is encouraged that you invest carefully and consult investment related informa-
tion available on the websites of the SEC at http://www.sec.gov and the Financial Industry Regulatory Authority (FINRA) at http://finra.org.
E
very great public company story deserves that I believe management teams of public com-
an engaged audience, regardless of market panies should take in a bear market: 1) Keep doing
conditions. Particularly during bear markets, what you do best, namely, running the company to
astute investors are listening. They have their anten- the best of your ability, with long-term performance
nae up, looking for good companies whose share in mind. 2) As difficult and painful as it may be, do
values may have dropped because of the market, not be defensive about a falling stock price, particu-
but not because of company fundamentals and larly if the company is still performing well. Investors
performance. Gaining the attention of microcap know the reason, and it is not the CEO. The rational
and smallcap investors while valuations are low is a investor will stay calm and even become excited
strategy than works. by price declines, seeing opportunities rather than
losses.
SNN’s Shelly Kraft recently sat down with veteran
investor relations and public relations advisor Roger SK: How ‘bout specifically from a
Pondel, CEO of PondelWilkinson Inc., to ask a few communications perspective… should
questions about what microcap and smallcap public management teams of microcap and
companies should be doing to address the bear smallcap companies just lay low for a
market blues: while until market conditions clearly
improve?
SK: Why is it important that public
companies seek attention in the RP: Retreating or staying purposely quiet is not a
investment community during a bear strategy that works. Bear markets are principally
market? reflections of investor sentiment, rather than com-
pany specifics. More than ever during bear markets,
RP: For publicly traded companies, communicating companies should communicate widely. In so many
with existing and prospective shareholders during cases, the corporate story remains solid. And when
bear markets may at first seem counterintuitive. there is bad news to convey, doing so in a transpar-
Who is listening? But at a time when valuations ent manner instills integrity, trust and respect.
have dropped precipitously, investors are eager to Businesses that go silent just because they are not
discover and invest in solid companies at perceived seeing immediate valuation returns are essentially
bargain prices. It is also a time to communicate leaving it up to the court of public opinion to choose
and foster good relations with existing investors, their fate—but taking a proactive approach by filling
providing confidence in the company’s future and communications channels with the proper mes-
encouragement to stay the course. saging, including news content, will help overcome
negativity stemming from a communication vacuum.
SK: Cutting to the chase, is there any one
best course of action public companies SK: Is there any difference in bear market
should take during bear markets? communications tactics that microcap
and smallcap companies should pursue,
RP: While there is little companies can do to calm versus what bigger cap companies do?
market forces, I will give you two courses of action
Lucosky Brookman is a corporate law firm directly serving the small and middle markets. With
offices in New York, New Jersey and Philadelphia, we represent domestic and international clients
in a variety of sophisticated corporate and securities transactions, mergers and acquisitions, secured
and unsecured lending transactions, PIPEs, SPACs, commercial and securities litigation,
intellectual property, insurance coverage and defense, real estate and general corporate matters.
INVESTOR RELATIONS
FOR BEAR MARKETS
For more than half a century, PLR has been committed to the art of
investor relations and shareholder communications.
W
e craft informative releases that convey After more than five decades in the Investor Rela-
clients’ key messages with authority and tions business and having lived through a number
clarity, and we distribute them to a unique of bull and bear markets, I am often asked, “how
distribution list we build and maintain for each client. should I spend my PR-IR budget in response to vary-
We arrange media placements on behalf of our ing market conditions?” My response never varies:
clients, including “print” interviews, podcasts and “be aggressive in bringing your company’s story to
video interviews with management. the investment community.”
In 90 percent of cases, companies that slash their For more information about Porter, LeVay & Rose,
investor relations budgets during down markets see please visit: www.plrinvest.com
a reduction in share price and a significant loss of
value. We have always advised our clients to focus
on performance; they are usually successful when
they do, but as soon as they find themselves in a
bear market, they forget the importance of this
metric and, instead of staying a successful course,
they try to “disappear.” Time and again it’s an
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
Inflation,
Inflation,
Inflation. But
What’s Going on
With Gold & Silver?
Gold and silver have been around since the beginning of time. Gold
is a noble metal, and silver is on the periodic chart of elements.
B
oth are extremely hard to obtain. Both have The conventional wisdom is that gold and silver
intrinsic value. This article aims to convey should be performing better. So what’s going on?
thoughts on how gold and silver perform in
times of inflation.
But these derivatives are abused. Hedging, deriva- Governments inflate the currency to generate more
tives, leverage, and financial instruments are polite money than they could obtain through taxation. Infla-
words. Unfortunately, what is happening is fraudu- tion is a covert and insidious “tax” that the govern-
lent acts are becoming normalized. ment takes from the citizens without their consent.
It isn’t easy to find actual numbers for the value Inflation is nothing new. Even in ancient times, gov-
of the paper market. The only way to do so is to ernments would resort to debasing their currency by
extrapolate or draw some inferences from clues. introducing copper to silver, or clipping coins. Un-
fortunately, modern central banks and governments
The 2022 World Silver Survey mentions this: perform the same deception on a much grander
scale. From the founding of the U.S., it took over 227
“ ... annual turnover for the main COMEX contract fell years to print its first $26 trillion. But in just months,
below 100bn oz (-25% y/y) for the first time since the U.S. Government printed more than $6 trillion.
2016.”
Why did we keep interest rates at zero
For 2021 this was around 98 billion ounces. This well past the Global Financial Collapse
means that the value of silver derivatives related of 2008?
to COMEX amounts to approximately 98 billion oz
multiplied by the average silver price of 25 USD (in Because the banks needed easy money and a
2021). riskless trade.
This yields around 2.5 trillion USD, and then there’s Who gets to borrow at the Federal funds rate?
the LBMA itself with 92 billion oz (almost another 2.5 Nobody but the banks. The U.S. Treasury, ECB, and
trillion USD) and others like the Shanghai Futures Bank of Japan have an enormous problem: massive
Exchange. amounts of debt. They can’t restructure this debt
quickly because no one wants to take the other side
of the trade. The Japanese and Chinese are selling banks, and the banks were handing out bonuses to
U.S. Treasuries. managers who went on this miraculous run of NO
NEGATIVE TRADING DAYS.
The government can’t default on the debt or
politicians would lose their jobs. So, the only choice Meanwhile, the mega-corporations entered another
remaining is to devalue the debt. The Fed only has sweetheart deal. They were the beneficiary of crazy
the remaining tool to print money or downgrade and unfair tax legislation. The scheme went, “We
the debt. At the same time, they kept interest rates will cut your taxes, and you can then buy back your
ridiculously low for too long. This means the only stocks” (which increased the price of the stock even
buyers of debt have been the central banks. though their earnings were flat).
Let’s look closely at this transaction. Banks have This has led to all sorts of distortions. This has turned
been borrowing at zero, then they buy Treasuries the stock market into a derivative of the global debt
and lever them up 11 or 12 times. This is a riskless market. Where does the money go? Mainly in these
trade. JP Morgan had zero negative trading days last five areas:
year. Think of that—an entire year of perfect trading!
1. Equities, Taking a beating
They are not trading; they arbitrage by borrowing
near zero and buying Treasuries. 2. Currency, Inflated
Banks have been refortifying their balance sheets 3. Real Estate, Beginning to tumble
after being rescued. The Fed was happy with the
A gram or an ounce of gold buys essentially the Finally, I want to write something specific to the silver
same crude oil today as it has over the past seven market. There have been multiple class-action suits
decades. I have chosen oil because the energy it against banks and financial institutions for charging
provides is essential to our standard of living, but storage fees on “phantom” silver. This means that
other commodities have a similar result. silver was purchased, but it never made it to the
vault; it was merely a bookkeeping entry. How big
Conclusions could the silver market be if this was the case?
We have been told that gold and silver should do A suit was filed in 2007 against Morgan Stanley.
well in inflationary environments, and no one dis- In that case, investors were frauded into an unal-
putes that we live in inflationary times. Unfortunately, located metals storage program. The bank defended
this last round of money printing (justified by the itself and stated it was simply following standard
Covid War) has unleashed the inflation beast. industry practices. What if this bank was telling the
truth? Morgan Stanley did settle by paying a fee.
However, we want to make the case that gold has The silver was not delivered to the silver investors.
preserved wealth, which is the mantra of the brutal
money camp. The oil chart is an objective way to This dirty secret is seldom mentioned, and specific
demonstrate this fact. In terms of performance, gold banks and investment houses play by the rules, but
has had an annual compounded rate of return of ten some do not.
percent since 2000. This outperforms both the U.S.
stock and bond markets for the past 22 years. If you are looking for a safe storage facility, send an
email to our company, support@themorganreport.
Part of the problem is perception. Investors enjoyed com, and put STORAGE in the subject line.
a “forever” gold market for 11 straight years, from
the year 2000-2011. The past ten years have seen David Morgan is the publisher of the Morgan Report, found at www.
TheMorganReport.com. This website offers three levels of service for
the market wallow back and forth without a clear investors in the resource sector. Although considered a leading voice in
direction. However, we have reached an inflection the silver industry, TMR focuses on the entire sector having been first in
rare earths, cobalt, and cyanide free recycling. Visit the About tab on the
point. Gold is currently undervalued and will surpass website and view The Four Horsemen film for free. This documentary is
the price needed to accurately price it for the must viewing for people during these fast changing times.
currency debasement of the past several years. Jon Forrest Little resides in Pittsburgh PA. He is the publisher of The
What is that price? It would be $5000 minimum and PickAxe and a market strategist for The Morgan Report. His professional
background is in clay mining and architectural sales. He studied anthropol-
$10,000 is not an unreasonable expectation. ogy at the University of New Mexico and economics at Georgetown
University. Jon is also a contributor on Palisades Gold Radio, Arcadia
The derivatives system is like a house of cards built Economics and writes for Money Metals.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
David Morgan does not own any of the stocks mentioned in this article.
112 Planet MicroCap Review www.PlanetMicroCap.com
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UPLISTING
MARKET UPDATE
Q3
Q3 SUMMARY
While the larger capital markets continued to slow, the micro-cap marketplace
remained active during the third quarter of 2022 (Q3). Micro-cap uplisted and
cross-listed companies raised approximately $222 million in Q3, while companies
completing micro-cap IPOs raised approximately $423 million.
UPLISTING/CROSS-LISTING
MICRO-CAP IPOs
21 4 25 10
MICRO-CAP ISSUERS FOREIGN PRIVATE MICRO-CAP IPOs
UPLISTING AND MICRO-CAP IPOs COMPLETED BY
ISSUERS CROSS-
CROSS-LISTING IN COMPLETED IN Q3 FOREIGN PRIVATE
LISTING IN Q3
Q3 ISSUERS IN Q3
16 5 4 95%
UPLISTS AND CROSS- ISSUERS LISTED ON ISSUERS FROM FOUR OF ISSUERS
LISTS ASSISTED BY A SENIOR U.S. JURISDICTIONS COMPLETING MICRO-
INVESTMENT EXCHANGE COMPLETED MICRO- CAP IPOs IN Q3
BANKERS ORGANICALLY CAP IPOs IN Q3 LISTED ON NASDAQ
During Q3, 21 micro-cap uplisting and cross-listing issuers listed on a Senior U.S.
Exchange, a decrease of 22 issuers compared to the same period in 2021.
Micro-cap uplisting and cross-listing issuers raised, in a total of 16 offerings, a
combined $222 million, representing a decrease of $238 million from the combined
$460 million raised in a total of 43 offerings during Q3 of 2021.
The average offering size in Q3 was $13.9 million, a decrease of $3.4 million from the
$17.3 million average offering size in Q3 2021.
A total of 5 issuers listed organically during Q3, a decrease of 6 issuers when
compared to the same period in 2021.
Dollars Raised
$250M
$200M
$150M
$100M
Q3
25
$50M
20
2022 $0M
15
10
50
40
Q3 Jul Aug Sep
30 2021
5
20 Q3 2022 Q3 2021
0
10
21 16 5 4
0
43 32 11 5
Uplists & Cross-Lists
20
15
10
Total Listings Organic Listings
5
Offerings Cross-ListingS
0
Jul Aug Sep
MICRO-CAP IPOs
The median capital raise in Q3 was $13.6 million, a decrease of $11.4 million from the
$25 million median offering size in Q3 of 2021.
Ten (10) of the offerings in Q3 came from foreign private issuers, an increase of 5
when compared to the same period in 2021.
Dollars Raised
$600M IPOs
$400M FPIs
$200M
$0M
$423M
Raised
Q3
Jul Aug Sep $13.6M
Median 2022
Q3 2022 Q3 2021
Q3
15
$863M
Raised
10
5 2021 FPIs
0
Jul Aug Sep IPOs
The pause appeared to be tied to the recent trading of certain IPOs with
extreme high and low post-listing trading swings. Nasdaq was reviewing
certain deals in the interest of “market integrity” and will be
implementing new rules related to vetting the actual offerings and its
participants. Like many of you, we have recently seen an uptick in
comments from Nasdaq during the listing process related to road show
meetings, syndicate members and shareholder lists etc.
For a more in-depth discussion and analysis on this topic, please feel
free to reach out to Lucosky Brookman at info@lucbro.com.
Note: This article is not an attempt to provide investment advice. The content is purely the author’s personal opinions and should not be
considered advice of any kind. Investors are advised to conduct their own research or seek the advice of a registered investment professional.
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