The Deep Value Week – 2025/04
Preliminary Results, Buybacks, Stock Divesture and X Discussions
Companies mentioned:
· Alico (ALCO) – At Sidoti Events
· Friedman Industries (FRD) - Files Amended Annual Report Highlighting Internal Controls Updates
· Reko International (REKO) – Further Buybacks
· Key Tronic (KTCC) & Sigmatron International (SGMA) – Jerome on X
· Unifi Inc. (UFI) - Executive Reports Sale Transaction
· Flexible Solutions International (FSI) - Comprehensive Financial Planning Inc. Decreases Stake to 10.1%
· Key Tronic (KTCC) - Preliminary Q2 2025 Results Amid Component Shortages and Lower Demand
“Graham’s Geiger counter”
Benjamin Graham suggested that one way to measure the valuation of the overall market was to assess the number of net-nets available. When many such opportunities exist, it indicates a cheap market overall, while their absence suggests that the market is expensive. Today’s net-nets, however, are not the same as Graham’s net-nets. Many are un-investable being Chinese RTO’s, loss-making biopharma’s etc. But we do think it is interesting to follow this number over time, and what percentage of total listed stocks qualify as a “naked” net-net without any type of quality adjustments to make them investable. Below is a net-net screen from Stockopedia.
Alico (ALCO) – At Sidoti Events
P/TB 0.95 │ Agriculture │ URL
Alico presented at Sidoti Micro-Cap Conference.
Friedman Industries (FRD) - Files Amended Annual Report Highlighting Internal Controls Updates
P/TB 0.77 │ Steel │ URL
Friedman Industries, Inc., a company in the steel manufacturing sector, has submitted an amended Form 10-K/A for the fiscal year ending March 31, 2024. The amendment rectifies disclosures regarding the evaluation of the company's disclosure controls and procedures, which were initially omitted. Management concluded that disclosure controls and procedures were ineffective as of March 31, 2024, due to the omission. Remediation efforts have since been implemented to address identified weaknesses in financial reporting and controls. The company also restated its internal control evaluation, reporting that these measures were effective at the end of the fiscal year. No new financial data or events beyond the initial report have been introduced in this amendment.
Reko International (REKO) – Further Buybacks
P/TB 0.51│ Industrial │ URL
Reko bought back an additional 1.3k shares last week, at c$3.83 a share.
Key Tronic (KTCC) & Sigmatron International (SGMA) – Jerome on X
P/TB 0.36 / 0.20 │ Discussion │ URL
Jerome shared some thoughts on SGMA and KTCC.
Unifi Inc. (UFI) - Executive Reports Sale Transaction
P/TB 0.43 │ Insider Selling │ URL
On January 18, 2025, Boyd, Executive Vice President of UNIFI Inc, disposed of 1,354 shares of common stock at a price of $6.31 per share to satisfy tax withholding obligations related to the vesting of restricted stock units granted on December 19, 2023. Following this transaction, Boyd retains ownership of 67,489 shares of Unifi Inc. common stock, all held directly.
Flexible Solutions International (FSI) - Comprehensive Financial Planning Inc. Decreases Stake to 10.1%
P/TB 2.48 │ Speciality Chemicals │ URL
Comprehensive Financial Planning Inc., an investment advisory firm based in Georgia, has filed an amended Schedule 13G/A with the SEC, disclosing beneficial ownership of 1,258,521 shares of Flexible Solutions International Inc. common stock, representing 10.1% of the company's outstanding shares as of December 31, 2024. Prior to this they held 10.85%.
Key Tronic (KTCC) - Reports Preliminary Q2 2025 Results Amid Component Shortages and Lower Demand
P/TB 0.36 │ Contract Manufacturing │ URL
Key Tronic Corporation, a global provider of electronic manufacturing services, has announced its preliminary financial results for the second quarter of fiscal year 2025, ending December 28, 2024. The company anticipates reporting revenue of approximately $114 million and a net loss between $0.40 and $0.48 per share, falling short of prior guidance. The shortfall is attributed to unexpected component shortages, lower production during the holiday season, and reduced demand from select customers, which collectively impacted revenue by $15 million. Additionally, the company expects to record a $1 million write-off related to loan refinancing fees.
Key Tronic projects a recovery in Q3 2025 with expected revenue ranging from $115 million to $130 million and earnings per share between $0.00 and $0.15. This outlook is bolstered by ongoing strategic initiatives, including operational streamlining and inventory adjustments. The company also highlighted progress in securing new programs in aerospace and energy resiliency technologies.
The writer may own shares of the companies mentioned. This communication is for informational purposes only.