SMG Capital
Long/short equity, value, special situations

A-Mark Precious Metals Is An Undervalued, Underfollowed, Small-Cap Spinoff With High Insider Ownership

Company overview

A-Mark (NASDAQ: AMRK) is a dealer of precious metals, including gold and silver bullion and coins. The company serves as a middleman between buyers and sellers of these items and also provides secured loans to precious metals dealers, investors, and collectors. A-Mark is not a precious metals speculator or investor and does not try to profit by trading metals futures or physical metals. Instead, the company hedges its exposure such that it profits regardless of metals prices and simply makes a small spread on each transaction. Interest income from the company's lending operations also makes up a substantial share of its total earnings.

Why this opportunity exists

Until recently A-Mark was not a stand-alone public company but...

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