Good Over-the-Counter “Pink” Stocks, besides ADRs by David Merkel, CFA of Aleph Blog

I really appreciate my readers.  Here’s an e-mail from one:

David,

Just read your recent blog post “E-mails on Insurance.”

You made the comment that “aside from non-sponsored ADRs no good companies trade on the pink sheets.”

Of course that is true in a general sense. I also am sure you have been inundated with lots of email taking exception to that comment.

One company I have loosely followed over time (that I came across just by chance many years ago) is Computer Services (CSVI) [www.csiweb.com]. There is no volume in the stock so institutional managers have no ability to take a position, but the firm has done a great job of growing the business while maintaining profitability (been an opportunistic acquirer of small bank processor companies) and is probably a candidate for consolidation by a Fiserv or someone like that. Anyhow, I think if you take a look at the firm, you will see that there is at least one solid company traded on the pinks (and I am sure there are others, I just don’t go fishing there).

My comment “aside from non-sponsored ADRs no good companies trade on the pink sheets.” is an overstatement.  To prove that, I give you a list of 148 companies that:

Good Over-the-Counter “Pink” Stocks, besides ADRs

  • Have been profitable for the last four fiscal years.
  • Are US companies
  • Are not ADRs

2370 companies that trade over-the-counter reduce to 148 companies — 6.24% of the whole, explaining why my overstatement is largely, but not totally correct.  I would not tell someone to look amid these companies to find good ones, but there are some good ones there.  I have listed them in declining order of market capitalization.

CompanyTickerSectorIndustryMkt CapDollar VolumeP/EP/BP/S
Belk IncBLKIA09 – Services0951 – Retail (Department & Discount)   2,057.80            –   12.40     1.66     0.51
First National Bank AlaskaFBAK07 – Financial0727 – Regional Banks      604.00            –   14.90     1.23     5.45
First Citizens Bancorporation,FCBN07 – Financial0727 – Regional Banks      572.70     33.20     9.60     0.64     1.87
Computer Services, Inc.CSVI10 – Technology1036 – Software & Programming      476.10   146.81   18.20     3.80     2.31
Hills BancorporationHBIA07 – Financial0727 – Regional Banks      345.00       3.65   13.30     1.29     4.03
Farmers & Merchants BancorpFMCB07 – Financial0727 – Regional Banks      324.40     20.85   13.60     1.54     4.27
FRMO Corp.FRMO07 – Financial0721 – Misc. Financial Services      302.80     23.45   26.90     3.66   16.64
HomeFed CorporationHOFD02 – Capital Goods0215 – Construction Services      299.80     22.83   62.40     1.79     7.93
First Opportunity Fund, Inc.FOFI07 – Financial0721 – Misc. Financial Services      262.10   269.95     7.20     0.86   58.25
International Wire Group HoldiITWG01 – Basic Materials0127 – Misc. Fabricated Products      255.40       2.61   19.60     6.69     0.21
Canandaigua National CorporatiCNND07 – Financial0724 – Money Center Banks      249.90       6.65   12.20     1.66     3.41
Viskase Companies, Inc.VKSC01 – Basic Materials0109 – Containters & Packaging      237.90   214.50   24.10     0.67
Conrad Industries, Inc.CNRD11 – Transportation1118 – Water Transportation      226.80   249.58     9.10     1.95     0.86
United Capital Corp.UCAP10 – Technology1024 – Electronic Instruments & Controls      187.40       4.80   13.40     1.34     1.58
Isabella Bank CorpISBA07 – Financial0727 – Regional Banks      184.70     52.67   15.50     1.14     3.39
Profire Energy, Inc.PFIE02 – Capital Goods0209 – Construction – Supplies and Fixtures      160.20     98.83   41.90   10.81     5.97
Cambridge BancorpCATC07 – Financial0727 – Regional Banks      150.50     59.33   11.50     1.47     3.20
Citizens Financial Services InCZFS07 – Financial0718 – Investment Services      148.30     24.55   10.90     1.64     4.06
Mestek, Inc.MCCK02 – Capital Goods0218 – Misc. Capital Goods      144.40       0.86     8.80     1.03     0.41
Webco Industries, Inc.WEBC01 – Basic Materials0127 – Misc. Fabricated Products      143.50     16.95   15.50     0.57     0.22
First Keystone Corp.FKYS07 – Financial0727 – Regional Banks      137.80     18.75   12.80     1.42     4.32
MVB Financial CorpMVBF07 – Financial0724 – Money Center Banks      135.30     14.40  

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