The Deep Value Week – 2025/29
New Report and Supplemental Take Over Proposal
Companies mentioned:
· Flexible Solutions (FSI) - Reports Modest Q2 Growth, Cites Shift Toward Food-Grade Products
· Fonar (FONR) - Receives Supplemental Take-Private Proposal at 27% Premium
“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.
Flexible Solutions (FSI) - Reports Modest Q2 Growth, Cites Shift Toward Food-Grade Products
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Flexible Solutions International Inc., a Canadian environmental technology firm listed on NYSE-American, reported a 6.5% year-over-year increase in Q2 2025 revenue to $11.212m (vs $10.529m in Q2 2024). The growth was largely driven by a $2.5m payment related to food-grade product development, helping offset weaker sales from several long-standing customers—impacted by broader economic uncertainty, tariffs, and inventory reductions. CEO Dan O’Brien emphasized the strategic pivot toward food and nutrition markets, noting volatility in the core business but maintaining a cautiously optimistic outlook for H2 2025. Full financials and a conference call are scheduled for August 14–15, 2025.
Fonar (FONR) - Receives Supplemental Take-Private Proposal at 27% Premium
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Fonar Corp., the pioneering MRI technology company based in New York, has received a supplemental non-binding proposal from a group led by Timothy Damadian to take the company private at $17.25 per share in cash—representing a ~27% premium to the 90-day average closing price as of June 30, 2025. A Special Committee of Fonar’s board, comprised of independent directors, is reviewing the offer with external legal and financial advisors. The company emphasized that no decision has been made, no agreement exists, and there is no guarantee of a transaction occurring. Shareholders are advised that no action is currently required.
The writer may own shares of the companies mentioned. This communication is for informational purposes only. AI helped us with this. Check important info.