Small-Cap Round-Up (MNDO, BSM, AVCA, BRR, NMKT)

by: Microcap Speculator

The Microcap Speculator submits: Last week was a very heavy news week for microcaps. A few notable items:

  • Mind C.T.I. (MNDO) rose 5.7% on over 4x average volume on Friday. I have no idea what caused the spike. MNDO is my largest position, even after I sold a chunk into the spike at 3.49.
  • BSD Medical Corporation (BSM) rose over 12% Friday on news of its PreMarket Approval Application with the FDA. Lots of you have asked whether to chase it here. That's a decision each of us need to make for ourselves. I have not added to my initial position noted in the article Friday morning. Long term, there are only two likely outcomes. If the system continues to show promise, the stock could easily see double digits. On the other hand, if the FDA rejects the system though, or if negative stories arise, this stock could trade close to zero. I'm betting on the first outcome, but I also bet on BC to upset Villanova, so what do I know?
  • Retirement home operator Advocat Inc. (AVCA.OB) announced an agreement with its lenders to extend the maturities of certain debt for two years, and amended the terms to bring Advocat into compliance. Now that Advocat is not in default, the indebtedness can once again be classified as a long term liability rather than a current liability, strengthening AVCA's balance sheet. More importantly, the move shows the willingness of the bankers to work with the company. This company is in the process of a huge turnaround, and I think it will succeed. Earnings are expected this week, and I anticipate a strong number.
  • ACR Group, Inc. (BRR) moved from the OTC BB to the Amex in the beginning of the week and has performed well, rising just over 3%.
  • Is NewMarket Technology, Inc. (NMKT.OB) CEO Phil Verges' compensation tied to the number and length of press releases the company puts out? I think this company is starting to execute well and has very bright prospects, but there is such a thing as too many press releases. Its unfortunate, because the company's real achievements (such as this announcement last week about $6 million in additional Latin American systems integration contracts) get lost amidst neverending jabbering about its strategic plans.
DISCLOSURE: I am long MNDO, BSM, AVCA.OB, BRR and NMKT.OB. Not a recommendation to buy or sell any securities. For informational and educational purposes only.

About this article:

Problem with this article? Please tell us. Disagree with this article? .