Quick Pitch: Some recent buys
A data center play, funeral home acquirer and consumer health company
Hi there,
I recently started a few small positions and will provide a quick pitch for each below. All positions are small as I’m still doing research and these are speculative. Deep dives may follow.
In case you missed it, here are some recent insights:
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Disclosure: I own shares in each stock mentioned below. I am not a financial adviser. Please do your own due diligence.
Fuel Tech, Inc. (FTEK)
Engages in development, commercialization, and application of technologies for air pollution control, process optimization, water treatment and advanced engineering services to utility and industrial customers. No long-term debt with about $1.00 per share in cash. Company has traditionally lost a little bit of money, but backlog has jumped and bidding on data center contracts. Normally, I would not be interested in something like this, but it has some downside protection with the data center angle as a catalyst. One contract win would move the company to profitability. Stock could go on a run similar to TSSI or TGEN if multiple contracts are won.
Rumbu Holdings Ltd. (RMB.V)
Funeral home serial acquirer that offers funeral and cremation services. Also sells burial caskets, urns, outer burial containers and other funeral and cremation merchandise. Trades at roughly 1x sales. Currently owns 5 locations with plans to acquire more during 2025. It should be a boring, cash flow machine. Likely some dilution initially but will be able to acquire future locations from cash flow.
Synergy CHC Corp. (SNYR)
Provider of consumer health care, beauty, and lifestyle products in U.S., Canada and United Kingdom. Most well-known brand is Focus Factor which has mixed reviews from users. Just signed a licensing agreement with Turkey and UAE. Recent, profitable busted IPO that has stabilized. Sales are declining YoY but P/E ratio is only 2 (for a reason). High amount of debt but none due until 2029 and just opened a $20 million LOC to provide liquidity in near term removing dilution risk. Very high insider ownership. Just brought in an exec from Coca-Cola to help drive international expansion. CEO hinted at an energy drink coming to market in an interview here. Looks like a value trap that may be at an inflection point.
Thanks for reading!
Luke
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