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OTC Newsletter - Interview With Safety In Value

Apr. 11, 2018 6:44 AM ETIBKR, IVFH10 Comments
Jan Svenda profile picture
Jan Svenda


  • Below you can read another interview that was conducted for my newsletter.
  • This time with another fellow SA contributor, Safety in Value.
  • We have a chat about balancing long-term investments with short-term trades, Canadian market and much more.
  • This is only an excerpt and does not include SiV's top ideas.

Dear subscribers,

After a bit of a break, I am happy to present an interview with Safety in Value, a frequent OTC investor and an SA contributor who is running his own marketplace and investments. I hope you will enjoy the discussion.

As a start, could you please share with us how did you end up analysing microcaps and OTC entities?

I started analysing microcap companies largely by coincidence. My investing journey started using stock screeners, and I would inevitably find that when I sorted for the cheapest companies, the ones I thought had the most investment potential were the smallest. Over time I focused more and more of my efforts on small companies, to the point that it is now the vast majority of my investing.

Could you please describe your investment strategy and what are the most important factors in it?

Ecclesiastes 4:12 says “…a threefold cord is not easily broken.”

My investing strategy is to segment my investments into three main types, which I believe will be not highly correlated to each other. That allows me to take more individual security risk than I would otherwise be comfortable with, and allows me to fish in the cheapest stocks. These are inevitably cheap for a reason, so some of them fail.

The three types of businesses I buy are as follows:

  1. The very cheap. These are businesses where things are so cheap that practically speaking good news (a catalyst) isn’t really required, all that needs to happen is for the worst case to not come true. Generally these investments are net-nets, but I will also look at undervalued asset plays as well in this bucket. I have a deep affinity for unknown real estate assets, and think that knowing what the market missed is definitely nice.
  2. Great businesses. These

This article was written by

Jan Svenda profile picture
I am an investor and analyst focused on two fields. Deep value in the Over-The-Counter (OTC) space and short-selling on the listed markets. The first focus has involved me running my own newsletter for the past two years. Compiled database of research and stocks can be found on my website - https://jansvenda.com/. I am now working on various special situations within the OTC space. The short-selling focus is for now confined to my own research and weekly analysis of Short ideas for Seeking Alpha PRO+ community. From time to time I also contribute to Safety in Value's marketplace 'Microcap Review'.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (10)

Fast Track to Financial Independence profile picture
At least when it comes to margin rates, no other broker is nearly as good as IB.
Charlie's Munger profile picture
Commissions are low as well but cant trade many local securities on platform.
Fast Track to Financial Independence profile picture
What do you mean by "local securities"?
Charlie's Munger profile picture
Pink sheets are horrible, blocked on Lps, PR munis, etc
Charlie's Munger profile picture
Looking forward to the interview of the interviewers.
Safety In Value profile picture
I actually did publish an interview of Jan about a year and a half ago. You can see it here: https://seekingalpha.c...

The disclosure about being long IBKR, KGF, and IVFH is still valid as well, just as it was when I originally did this interview with Jan.
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