In my recent article explaining my rotation out of Helios and Matheson (OTCPK:HMNY) - I presented 3 alternative stocks to invest in: Smith Micro (SMSI), Chanticleer Holdings (BURG), and Aehr Test Systems (AEHR).
Mark Gomes has done an excellent job spearheading SMSI research at his blog and I've taken a decent-sized position. Further research on these names has made me even more bullish on BURG.
I plan on writing a full article on this in the future which should get extensive exposure if SeekingAlpha publishes it. In this blog, I will give a quick update on our due diligence:
1. Have had multiple meetings with management - and brought in outside experts to evaluate the opportunity.
2. Huge surprise - this company is excellent at operations. BURG is a true operating company with experienced and qualified management. We did not expect this level of expertise and competence in such a small company. Kudos to their team. (big secret here is BURG is NOT a holdings company as the company name suggests. They are an operating company which actually excels in operations and which is hurtling it's way towards profitability)
4. BURG has recently hired an excellent investor relations person who is cranking up the efforts behind the scenes to tell the story better and find investors to buy on the open market
5. There are only 3.6M shares outstanding and in our StoryTrading Trading group, we have already accounted for nearly 22% of ALL outstanding shares. I personally own 0.75% of the company now.
The story is compelling and will become more clear as the company ramps up their Investor Relations marketing and as I ramp up my efforts at StoryTrading to tell the story.
I won't share the compelling story today. That will be saved for the big reveal in the official SeekingAlpha article. In the meantime - if we are right about our thesis, time is running out to buy the stock as the float gets locked up into tight hands.
Don't trust me. Do your own research. You will find that management and Investor relations are highly available and responsive. To learn more, you can also join our BURG Research Group at storytrading.com
Disclosure: I am/we are long BURG.
Additional disclosure: I aggressively trade my long positions around a core and will buy or sell portions of my position at any time when the stock is over-extended in either direction. Given the dynamic and fast-changing nature of speculative microcap stocks, I may change my sentiment at any time without notice. My opinions expressed in this or any SeekingAlpha article or comment should not be construed as investment advice and are for entertainment purposes only. Special thanks to Joshua Kim and the entire StoryTrading Research Group for their collaborative research efforts on BURG.