Busted Preferred Stock in a Microcap Venture
A Saga of Innovation, Growth, and Market Turbulence
I recently came across an interesting situation that seemed potentially ripe for mispricing. The company is a high-growth, microcap company that is thinly traded. The business has gone through a significant transformation and appears to be at an inflection point. This resurgence has driven outsized returns in the company’s stock but the publicly-traded preferred securities have lagged a corresponding rally.
In this post, I’ll review the current situation and provide my preliminary assessment. On the surface, double-digit yields seem interesting for an adequately and conservatively capitalized business that is poised for continued, profitable growth from favorable industry tailwinds .
Note this is a high-risk, venture-style investment and not suitable for most investors. Moreover, liquidity is thin and only suitable for small AUM investors with high risk-tolerances and long-term hold periods.
Disclosure: The information provided is for informational purposes only and should not be considered as investment advice. Any investment decisions made based on the information provided are at your own risk. It is essential to conduct your own research and consult a qualified financial advisor before making any investment decisions. Investing involves risks, and past performance is not indicative of future results. By using this information, you acknowledge that you are responsible for your own decisions and release me from any liability. Seek professional advice tailored to your financial situation and objectives.