I’m running late today, on accounts of I had to spend some time in a giant metal tube. Flying discount carriers seems like a good idea at the time, until you, y’know, actually have to do it. But I digress.
Let’s talk a little about the Uproar Fund. During the 3rd quarter it added one position, Danier Leather, at $9.11 per share. It makes up approximately 5.5% of the fund.
As of the time of this writing, the stock hasn’t done well, thanks to it releasing some pretty crummy earnings a couple weeks after I bought. The stock has kept falling, and currently sits at $8.00 per share. I’m down a little over 12% on that one.
Outlook: I still like Danier, and the company has shrunk to the point where it’s a net-net. Investors are paying $8 per share for just the company’s current assets (less liabilities), getting the rest of the business for free. Things look bleak now, but I’m still confident it’ll recover. I’m currently adding to my position outside of the Fund.
MRRM has also been a disappointing performer, falling down to $2.60 per share. I’m less concerned about the share price for that one compared to any of my other selections, since all it takes is a few hundred shares to pull the price down. If I remember right, it was 600 shares that pulled the price down from $2.90 to $2.60.
Outlook: Still patiently waiting for the business to recover and for management to pay out some of the almost $2 per share worth of long-term investments it keeps on the balance sheet for some reason. This stock isn’t for the faint of heart, it could take years for management to figure it out. But I think it could certainly be worth double what it is now in 3-5 years. Still, I’m down approximately 19% on the name. Not sure if I’ll buy more, just because I’m pretty happy with the size of position I have.
Finally, some good news.
Reitmans is the largest position of the fund, coming in at 12.2% of total assets. A couple of weeks ago it reported a rock solid quarter, beating estimates on the top and bottom lines. The stock popped nicely on the news.
These days, shares trade for $6.57. I also received a $0.05/share dividend, my second as a shareholder. I paid $6.295 per share, meaning I’m up 5.9% including dividends.
As of the market close on Monday, here’s how the Uproar Fund has performed.
|Stock||Buy Price||Current Price (including dividends)||% Gain or Loss|
Let’s look at some dollar values, to put it in perspective.
|Stock||Amount Invested ($)||Current Value (including divs)|
Since the beginning of the year (yeah, an imperfect measurement, but screw it), the TSX is up almost 10%, while my fund is not. But hey, I’m not discouraged.
Stay tuned in the future, I’ve got some more nano-cap stock fun. Value is starting to pop back up, and there are some interesting names showing up. In fact, I could even add to the fund. Soon too.