Old-Fashioned Stock-Picking for Modern Markets
October 10, 2025
From the Editor
PLEASE NOTE:
- Any discussions or information shared in this conversation about stocks or potential trades are for informational purposes only and should not be construed as investment advice.
- Before making investment decisions, individuals are responsible for their own research and consulting with a qualified financial advisor.
- We, or our affiliates, may have positions in the stocks mentioned, potentially influencing our opinion.
- You should not buy equities unless you are prepared to sustain a total loss of the money you have invested plus any commission or other transaction charges.
The market continues to shake off anything and everything that might appear to be bad news, and there is no sign of this changing anytime soon. Investor David Einhorn has called it a “broken market” as investors buying index funds are by default propping up (supposed) growth stocks at the expense of value stocks. We most certainly concur. The recent combination of memes, (market-maker) manipulation, and investor ignorance is unmatched in my 40 years in the business. Its Stupidity 201 plus steroids, with the class designated as 101 going to some combination of extremes seen in 2001 and 2007.
Having said all that, there seems to be a strong tailwind in small-cap value land. After a heavy downward push earlier this year that shook out small-cap stock inventory, conditions are ripening for the M & A boom that we have been looking for. Stick with companies that are trading at prices below their intrinsic value in an arms-length financial or strategic transaction.
DigitalOcean (DOCN) remains arguably a victim of its profitability and still trades cheaply vs “bio-similar” Figma and oh so many others. LYFT has narrowed its price/sales to UBER discount with a 50% + move. Ilika (IKA.L) looks under accumulation and their asset-light 7% royalty model should start kicking in some sales soon. Twin Disc (TWIN) popped on a decent quarter and upbeat conference call. Precipio (PRPO) is a neat little blood pathology outfit with quickly improving fundamentals after a long road travelled. Small float, keep it on your watch list.
And in the category of, “Remember I Told You This”, if Teradyne (TER) is worth 8x revenues, then we submit that Intest (INTT) is worth at least 3x revenues. Check it out.
Remember, know what you own or the market makers will shake you out at any time, whether they are taking advantage of a real headline or a “manufactured” one.
In Closing
*The Dinosaur* doesn’t roar, it rumbles quietly, patiently, confidently. When the tide turns—as it always does—those who held to discipline, valuation, and patience will be well rewarded.
Until next time,
—The Editor
