I just bought shares of Forward Industries Inc for 1.53$. This company mainly sells carrying cases (75% of revenues) for diabetes machine. I got the idea from Greenbackd.
I bought some shares at $1.53. This is another negative Enterprise value stock purchase. The company’s market cap is 12MM with an enterprise value of -6MM. There is $2.40 in cash with no debt.
The company has been losing money for the past few years. There’s a cash burn of over 1 million dollars.
The potential catalyst include improvement in the economy and share repurchase. The company may be taken over, but it has an anti-takeover policy which would make it difficult.
Risk include a poor acquisition that burns through most of the cash, or increase in operating losses due to the economy or change in customer. Overall, I think the company has a good risk/reward profile.
Current holdings include:
ALG, EGY, FORD, MHJ, PRGN, RJET, SGI, TRID, TWIN, ULTR