Buying Dollars for 29 Cents + A 9.5% "Wait Fee" Dividend
PoW #30 | From Mainland China to a Rare Bird
We’re currently on a bit of an escapade through China, meeting with local CEOs to get a first-hand look at how ‘old economy’ stalwarts are holding up and how the ‘new economy’ players are about to obliterate their competition globally.
The summary of the trip so far: we are incredibly impressed.
Because we’re on the move, you might notice our content schedule feels a little misaligned over the next three weeks.
Even though we prepped everything before takeoff, we’re the type to obsess over a piece (usually going through 20+ drafts) before it ever reaches your inbox.
We only publish the best of the best, tailored specifically for this group. That’s exactly why our RedViolet write-up (surprise?) is still in the oven; it isn’t ready for prime time just yet.
We’ve seen a large influx so… to our new members: welcome.
You’ve joined us just in time for this very post, which contains what will likely be our premier idea for 2026/27.
⭐ Overall Grade: 9.5 / 10
Today, we’re focusing on a lost US-based company listed on the OTC market.
Despite its pretty under-the-radar status, they have a major catalyst on the horizon. If this plays out, which we view as the most likely path (more on this later), we’re looking at returns in the realm of +300%.
It is a true rara avis (a rare bird).
If you want to check it out before anyone else…
Pick of the Week. A curated series of high-conviction research on companies currently under our microscope. We screen for specific dislocations where the market has mispriced the balance sheet or earnings power.
The Selection Criteria:
Asset Arbitrage: Trading at a discount to tangible liquidation value.
Backlog Disconnect: Future contracted revenue ignored by the market.
Hidden Margins: Structural profitability masked by temporary noise or CAPEX cycles.
The Structure:
The Business: A concise operational overview.
The Dislocation: The specific structural reason the opportunity exists.
The Valuation: A stress-tested snapshot including downside risks (”Red Flags”) and our proprietary score.
None of the following should be construed as investment advice. Please consult a financial advisor before making any investment decision. You will find a full disclaimer at the end of this post.
