Business

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

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.

Company Ticker Sector Industry Mkt Cap Dollar Volume P/E P/B P/S
Belk Inc BLKIA 09 – Services 0951 – Retail (Department & Discount)    2,057.80             –    12.40      1.66      0.51
First National Bank Alaska FBAK 07 – Financial 0727 – Regional Banks       604.00             –    14.90      1.23      5.45
First Citizens Bancorporation, FCBN 07 – Financial 0727 – Regional Banks       572.70      33.20      9.60      0.64      1.87
Computer Services, Inc. CSVI 10 – Technology 1036 – Software & Programming       476.10    146.81    18.20      3.80      2.31
Hills Bancorporation HBIA 07 – Financial 0727 – Regional Banks       345.00        3.65    13.30      1.29      4.03
Farmers & Merchants Bancorp FMCB 07 – Financial 0727 – Regional Banks       324.40      20.85    13.60      1.54      4.27
FRMO Corp. FRMO 07 – Financial 0721 – Misc. Financial Services       302.80      23.45    26.90      3.66    16.64
HomeFed Corporation HOFD 02 – Capital Goods 0215 – Construction Services       299.80      22.83    62.40      1.79      7.93
First Opportunity Fund, Inc. FOFI 07 – Financial 0721 – Misc. Financial Services       262.10    269.95      7.20      0.86    58.25
International Wire Group Holdi ITWG 01 – Basic Materials 0127 – Misc. Fabricated Products       255.40        2.61    19.60      6.69      0.21
Canandaigua National Corporati CNND 07 – Financial 0724 – Money Center Banks       249.90        6.65    12.20      1.66      3.41
Viskase Companies, Inc. VKSC 01 – Basic Materials 0109 – Containters & Packaging       237.90    214.50    24.10      0.67
Conrad Industries, Inc. CNRD 11 – Transportation 1118 – Water Transportation       226.80    249.58      9.10      1.95      0.86
United Capital Corp. UCAP 10 – Technology 1024 – Electronic Instruments & Controls       187.40        4.80    13.40      1.34      1.58
Isabella Bank Corp ISBA 07 – Financial 0727 – Regional Banks       184.70      52.67    15.50      1.14      3.39
Profire Energy, Inc. PFIE 02 – Capital Goods 0209 – Construction – Supplies and Fixtures       160.20      98.83    41.90    10.81      5.97
Cambridge Bancorp CATC 07 – Financial 0727 – Regional Banks       150.50      59.33    11.50      1.47      3.20
Citizens Financial Services In CZFS 07 – Financial 0718 – Investment Services       148.30      24.55    10.90      1.64      4.06
Mestek, Inc. MCCK 02 – Capital Goods 0218 – Misc. Capital Goods       144.40        0.86      8.80      1.03      0.41
Webco Industries, Inc. WEBC 01 – Basic Materials 0127 – Misc. Fabricated Products       143.50      16.95    15.50      0.57      0.22
First Keystone Corp. FKYS 07 – Financial 0727 – Regional Banks       137.80      18.75    12.80      1.42      4.32
MVB Financial Corp MVBF 07 – Financial 0724 – Money Center Banks       135.30      14.40    22.10      1.67      5.34
First Mid-Illinois Bancshares, FMBH 07 – Financial 0727 – Regional Banks       130.30        4.40    12.90      1.32      2.43
First Real Estate Investment T FREVS 09 – Services 0933 – Real Estate Operations       126.70      13.69    42.40      7.73      3.08
First Manitowoc Bancorp, Inc. BFNC 07 – Financial 0730 – S&Ls/Savings Banks       120.80      33.30    11.30      1.19      3.07
Peoples Financial Services Cor PFIS 07 – Financial 0727 – Regional Banks       120.40      62.40    14.60      1.90      4.37
First Farmers & Merchants Corp FFMH 07 – Financial 0727 – Regional Banks       111.20        3.30    13.30      1.05      3.05
Yasheng Group HERB 05 – Consumer Non-Cyclical 0509 – Crops       105.50        3.88      0.80      0.05      0.11
Farmers & Merchants Bancorp In FMAO 07 – Financial 0727 – Regional Banks       105.10      62.01    11.40      0.98      3.37
Nova Lifestyle Inc STVS 04 – Consumer Cyclical 0421 – Furniture & Fixtures          89.20      93.77    16.80      2.50      1.17
Golden Growers Coop GGROU 05 – Consumer Non-Cyclical 0509 – Crops          89.10        1.44    18.50      2.30      0.93
First Guaranty Bancshares, Inc FGBI 07 – Financial 0727 – Regional Banks          88.20        7.01    10.50      1.03      1.72
QNB Corp QNBC 07 – Financial 0730 – S&Ls/Savings Banks          83.40      49.82      9.70      1.12      2.62
CCFNB Bancorp Inc CCFN 07 – Financial 0727 – Regional Banks          78.40      26.99    12.00      1.05      3.75
Calvin B. Taylor Bankshares, I TYCB 07 – Financial 0727 – Regional Banks          75.70        3.84    17.80      0.95      5.11
Juniata Valley Financial Corp JUVF 07 – Financial 0730 – S&Ls/Savings Banks          73.20        7.85    18.80      1.50      4.35
Northwest Indiana Bancorp NWIN 07 – Financial 0730 – S&Ls/Savings Banks          72.70        7.68      9.80      1.08      2.76
Franklin Financial Services Co FRAF 07 – Financial 0727 – Regional Banks          71.80      36.33    13.10      0.77      1.97
Rand Worldwide Inc RWWI 10 – Technology 1036 – Software & Programming          67.60      24.38    41.70      2.05      0.85
Centrix Bank & Trust CXBT 07 – Financial 0727 – Regional Banks          67.40        7.17    12.00      1.29      2.26
Peoples Bancorp PBNI 07 – Financial 0730 – S&Ls/Savings Banks          66.80        7.20    21.60      0.88      3.59
Reserve Petroleum Co RSRV 06 – Energy 0609 – Oil & Gas Operations          66.20      20.75    10.90      2.05      3.49
Harleysville Savings Financial HARL 07 – Financial 0730 – S&Ls/Savings Banks          65.60      19.95    13.90      1.10      2.09
William Penn Bancorp Inc WMPN 07 – Financial 0730 – S&Ls/Savings Banks          65.50      28.80    23.40      1.15      4.86
Kentucky Bancshares, Inc. KTYB 07 – Financial 0727 – Regional Banks          65.30        6.00      9.10      0.92      2.36
Community Bancorp Vermont CMTV 07 – Financial 0727 – Regional Banks          64.50        5.31    13.70      1.50      2.82
Hennessy Advisors Inc HNNA 07 – Financial 0718 – Investment Services          64.30        9.81    13.10      2.23      2.74
Monarch Cement Co MCEM 02 – Capital Goods 0212 – Construction – Raw Materials          63.40      13.42    21.00      0.96      0.69
Armanino Foods Of Distinction AMNF 05 – Consumer Non-Cyclical 0515 – Food Processing          63.10      47.48    21.90      9.85      2.25
Q.E.P. Co., Inc. QEPC 02 – Capital Goods 0209 – Construction – Supplies and Fixtures          62.10      17.14      5.80      1.08      0.21
Commercial National Financial CNAF 07 – Financial 0727 – Regional Banks          60.10      17.85    12.10      1.33      4.17
Croghan Bancshares, Inc. CHBH 07 – Financial 0727 – Regional Banks          57.90        8.63    12.80      0.86      2.72
Burnham Holdings Inc BURCA 02 – Capital Goods 0209 – Construction – Supplies and Fixtures          57.20        6.66    12.80      1.29      0.42
Standard Financial Corp. STND 07 – Financial 0727 – Regional Banks          56.10      51.56    19.30      0.71      3.39
Choiceone Financial Services I COFS 07 – Financial 0727 – Regional Banks          54.90      13.34    11.30      0.90      2.85
LICT Corporation LICT 09 – Services 0915 – Communications Services          54.00             –      6.70
Capital Properties Inc CPTP 09 – Services 0939 – Rental & Leasing          52.80        4.80    34.80    34.78      6.86
Middlefield Banc Corp MBCN 07 – Financial 0727 – Regional Banks          52.70    101.40      8.10      1.00      1.87
CSB Bancorp Inc (Ohio) CSBB 07 – Financial 0730 – S&Ls/Savings Banks          52.00      20.90    10.10      1.00      2.49
Jeffersonville Bancorp JFBC 07 – Financial 0727 – Regional Banks          51.70      17.69    11.80      1.03      2.71
Georgia-Carolina Bancshares In GECR 07 – Financial 0727 – Regional Banks          51.70      59.45      7.80      0.90      2.78
PSB Holdings Inc (Wisconsin) PSBQ 07 – Financial 0727 – Regional Banks          50.60      10.72      8.30      0.90      1.86
Consumers Bancorp, Inc. CBKM 07 – Financial 0730 – S&Ls/Savings Banks          49.30        2.72    14.00      1.33      2.86
Quality Products, Inc. QPDC 02 – Capital Goods 0218 – Misc. Capital Goods          47.70        3.78      8.30      4.84      1.63
Northway Financial, Inc. NWYF 07 – Financial 0727 – Regional Banks          47.10      10.26      6.70      1.03      1.41
Granite Falls Energy LLC GFGY 01 – Basic Materials 0103 – Chemical Manufacturing          45.90             –    15.30
George Risk Industries Inc RSKIA 09 – Services 0972 – Security Systems & Services          45.20        9.89    11.40      1.40      4.27
F&M Bank Corp FMBM 07 – Financial 0727 – Regional Banks          43.30      11.21      9.00      0.84      1.63
Southern Michigan Bancorp SOMC 07 – Financial 0727 – Regional Banks          42.50        5.33      9.40      0.77      2.15
Noble Roman’s, Inc. NROM 09 – Services 0942 – Restaurants          42.30      69.62    30.90      3.28      5.63
Minden Bancorp Inc MDNB 07 – Financial 0730 – S&Ls/Savings Banks          41.60        3.50    12.80      0.98      4.07
Surrey Bancorp SRYB 07 – Financial 0727 – Regional Banks          41.50        4.68    16.50      1.36      3.91
Corning Natural Gas Holding Co CNIG 12 – Utilities 1206 – Natural Gas Utilities          40.20        7.99    20.40      1.78      1.74
Pioneer Railcorp PRRR 11 – Transportation 1112 – Railroads          37.00        6.72    21.30      2.80      1.77
Ziegler Companies, Inc., The ZGCO 07 – Financial 0718 – Investment Services          35.70      27.00    17.60      1.10      0.45
XCel Brands Inc XELB 07 – Financial 0721 – Misc. Financial Services          35.60        0.35      5.70      1.04      2.33
Security Federal Corporation ( SFDL 07 – Financial 0730 – S&Ls/Savings Banks          35.40        8.42    13.20      0.63      1.14
Regency Affiliates Inc RAFI 12 – Utilities 1203 – Electric Utilities          33.90        1.44      9.00      1.05
New Ulm Telecom Inc NULM 09 – Services 0915 – Communications Services          33.50        5.90      8.90      0.59      0.90
Heritage Bankshares, Inc. HBKS 07 – Financial 0727 – Regional Banks          29.60        8.45    14.10      1.00      2.79
Home Loan Financial Corporatio HLFN 07 – Financial 0730 – S&Ls/Savings Banks          29.50        2.60      8.60      1.17      2.82
High Country Bancorp, Inc. HCBC 07 – Financial 0730 – S&Ls/Savings Banks          29.50        9.90    15.20      1.24      3.15
Commercial Bancshares, Inc. O CMOH 07 – Financial 0727 – Regional Banks          29.10      14.76    10.30      0.95      2.06
South Street Financial Corp. SSFC 07 – Financial 0730 – S&Ls/Savings Banks          28.70    121.25    28.50      1.05      2.29
CreditRiskMonitor.Com Inc CRMZ 10 – Technology 1018 – Computer Services          27.90        1.75    87.50      6.48      2.38
Smtp Inc SMTPD 10 – Technology 1018 – Computer Services          25.80      27.23    20.60    15.57      4.46
West End Indiana Bancshares In WEIN 07 – Financial 0730 – S&Ls/Savings Banks          25.70        7.40    18.30      0.80      2.10
Northeast Indiana Bancorp NIDB 07 – Financial 0730 – S&Ls/Savings Banks          25.50        6.21      9.30      0.92      2.55
Summit Financial Services Grou SFNS 07 – Financial 0718 – Investment Services          25.20      23.80    15.40      2.51      0.31
First Bancorp of Indiana, Inc. FBPI 07 – Financial 0730 – S&Ls/Savings Banks          24.90        2.85    16.00      0.86      1.88
Spindletop Oil & Gas Co SPND 06 – Energy 0609 – Oil & Gas Operations          24.40        3.17      7.30      1.28      1.89
Frederick County Bancorp (MD) FCBI 07 – Financial 0727 – Regional Banks          24.10        7.20    15.80      0.91      1.90
Meritage Hospitality Group Inc MHGU 09 – Services 0942 – Restaurants          24.00        3.26      6.60      2.35      0.21
Pinnacle Bankshares Corp PPBN 07 – Financial 0727 – Regional Banks          24.00        7.95    17.90      0.85      1.54
CNB Financial Services Inc CBFC 07 – Financial 0727 – Regional Banks          23.60             –    15.10      0.83      1.97
Investors Heritage Capital Cor IHRC 07 – Financial 0709 – Insurance (Life)          23.50        8.28    11.70      0.44      0.29
Trans World Corporation TWOC 09 – Services 0912 – Casinos & Gaming          22.50        3.32    12.80      0.53      0.63
Pinnacle Bancshares, Inc. PCLB 07 – Financial 0727 – Regional Banks          21.70        4.46      9.10      0.82      2.33
FFW Corporation FFWC 07 – Financial 0730 – S&Ls/Savings Banks          21.40        6.74      9.10      0.93      1.66
ASB Financial Corp. (OH) ASBN 07 – Financial 0730 – S&Ls/Savings Banks          20.70        5.85    13.40      0.98      1.96
SBT Bancorp Inc SBTB 07 – Financial 0727 – Regional Banks          20.50      21.95    13.50      1.06      1.72
Seychelle Environmental Techno SYEV 02 – Capital Goods 0218 – Misc. Capital Goods          20.40      20.22    19.80      4.65      3.46
Great American Bancorp GTPS 07 – Financial 0727 – Regional Banks          19.80        2.70    13.40      0.80      2.26
Sierra Monitor Corporation SRMC 10 – Technology 1030 – Scientific & Technical Instruments          19.70      12.68    15.00      2.41      1.10
Logansport Financial Corp. LOGN 07 – Financial 0724 – Money Center Banks          19.60        2.50      9.00      0.86      2.30
Seneca-Cayuga Bancorp Inc SCAY 07 – Financial 0724 – Money Center Banks          19.60        1.24      9.50      1.00      1.64
Micropac Industries, Inc. MPAD 10 – Technology 1033 – Semiconductors          18.90        3.67    20.90      0.96      0.97
Texas Vanguard Oil Co TVOC 06 – Energy 0609 – Oil & Gas Operations          18.60        1.31    22.60      1.40      3.04
Issuer Direct Corp ISDR 09 – Services 0909 – Business Services          18.30      46.92    20.90      7.19      3.26
Environmental Tectonics Corpor ETCC 02 – Capital Goods 0203 – Aerospace and Defense          17.90        3.22    21.70      2.47      0.55
Wells Financial Corp. WEFP 07 – Financial 0730 – S&Ls/Savings Banks          17.80      13.50    13.60      0.67      1.99
Sono-Tek Corporation SOTK 02 – Capital Goods 0218 – Misc. Capital Goods          17.40      37.68    60.00      2.79      1.89
DynTek, Inc DYNE 10 – Technology 1036 – Software & Programming          17.00        0.80      5.00      2.23      0.13
Riverview Financial Corporatio RIVE 07 – Financial 0727 – Regional Banks          16.90      12.81    12.00      0.63      1.30
Paradise, Inc. PARF 05 – Consumer Non-Cyclical 0515 – Food Processing          16.60        3.20    18.80      0.78      0.66
Bank McKenney (VA) BOMK 07 – Financial 0727 – Regional Banks          16.60        4.30      9.10      0.73      1.55
Quaint Oak Bancorp Inc QNTO 07 – Financial 0730 – S&Ls/Savings Banks          15.60      30.88    23.60      0.85      2.38
Greenville Federal Financial C GVFF 07 – Financial 0730 – S&Ls/Savings Banks          15.40        2.20    17.50      0.82      2.55
BV Financial Inc BVFL 07 – Financial 0730 – S&Ls/Savings Banks          14.40        1.20    30.00      1.15      2.49
Jaclyn, Inc. JCLY 04 – Consumer Cyclical 0403 – Apparel/Accessories          13.70        2.70    15.40      0.62      0.08
OPT-Sciences Corp OPST 10 – Technology 1030 – Scientific & Technical Instruments          13.50        1.74    12.90      1.05      2.04
Citizens Bancshares Corporatio CZBS 07 – Financial 0727 – Regional Banks          13.30        1.94    11.40      0.40      1.02
Chino Commercial Bancorp (CA) CCBC 07 – Financial 0727 – Regional Banks          13.20        2.39    19.20      1.45      3.09
IEH Corporation IEHC 10 – Technology 1024 – Electronic Instruments & Controls          12.10      20.74      8.50      1.26      0.82
ITEX Corporation ITEX 07 – Financial 0718 – Investment Services          11.60      15.20    10.50      0.88      0.72
Zynex Inc. ZYXI 08 – Health Care 0812 – Medical Equipment & Supplies          11.20        9.67      1.20      0.39
Great Lakes Aviation, Ltd. GLUX 11 – Transportation 1106 – Airline          10.50        8.07      0.27      0.08
Fairmount Bancorp Inc FMTB 07 – Financial 0727 – Regional Banks            9.80        1.01    49.40      0.70      2.58
Solitron Devices, Inc. SODI 10 – Technology 1033 – Semiconductors            9.50      32.63    11.20      0.85      1.10
Repro-Med Systems, Inc. REPR 08 – Health Care 0812 – Medical Equipment & Supplies            7.70        3.80    21.00      1.62      0.96
Union Electric Company UELMO 12 – Utilities 1203 – Electric Utilities            7.60        4.70    25.40      2.39      2.78
Surge Components, Inc. SPRS 10 – Technology 1024 – Electronic Instruments & Controls            7.50      10.84      4.10      0.74      0.32
Home Financial Bancorp HWEN 07 – Financial 0730 – S&Ls/Savings Banks            7.50        1.68    13.30      0.92      2.21
Alliance Distributors Holding, ADTR 10 – Technology 1015 – Computer Peripherals            7.50        2.70      5.70      1.31      0.11
Community Investors Bancorp In CIBN 07 – Financial 0730 – S&Ls/Savings Banks            7.10        6.48    73.60      0.57      1.15
M&F Bancorp, Inc. MFBP 07 – Financial 0727 – Regional Banks            7.10        4.38      0.30      0.65
China Industrial Steel Inc CDNN 01 – Basic Materials 0121 – Iron & Steel            6.60        1.38      4.50      0.03
FPB Financial Corp. FPBF 07 – Financial 0730 – S&Ls/Savings Banks            5.20             –      8.90      0.97      1.78
NexCore Healthcare Capital Cor NXCR 08 – Health Care 0806 – Healthcare Facilities            5.10        0.02      2.00      0.45      0.37
Precision Auto Care PACI 09 – Services 0909 – Business Services            5.00        0.17      7.30      0.26      0.19
Scientific Industries, Inc. SCND 10 – Technology 1030 – Scientific & Technical Instruments            4.80        2.34    12.40      0.89      0.68
Tidelands Royalty Trust B TIRTZ 07 – Financial 0721 – Misc. Financial Services            4.70        9.01      9.20      7.91      6.73
Foxby Corp FXBY 07 – Financial 0721 – Misc. Financial Services            4.70        1.09      6.50      0.77    23.62
TNR Technical, Inc. TNRK 10 – Technology 1024 – Electronic Instruments & Controls            3.80        4.31    12.30      0.99      0.41
Information Analysis Incorpora IAIC 10 – Technology 1036 – Software & Programming            2.40        1.97      1.19      0.44
Microwave Filter Co., Inc MFCO 10 – Technology 1024 – Electronic Instruments & Controls            1.70        1.50      1.03      0.53
Bayou City Exploration, Inc. BYCX 06 – Energy 0609 – Oil & Gas Operations            1.50        0.81      2.70      0.73      0.44
Tongli Pharmaceuticals (USA) I TGLP 08 – Health Care 0803 – Biotechnology & Drugs            0.90        0.01      0.40      0.04      0.07

Lotsa little banks and tech companies.  Hey, I’m going to throw those with over $100 million of market cap into my next portfolio reshaping.  I’m still small enough as a manager to deal with small companies if they are well-managed.  This can bring me back to my microcap value days, where I invested 1992-1998.  Once I made an offer to buy more than 5% of a company, and I asked my bosses if they would have any problems if I had to make a 13F filing.  They gave me the go ahead; I made my offer and it was turned down.  Pity, because if it had worked, it would have been a great investment.

The table above is a beginning for due diligence.  I do not recommend any of the stocks there.  I do note that my reader’s stock is high on the list.

Some of these stocks could be good investments, but you would have to do the research to figure out which ones are good.  On the bright side, almost no one is analyzing these companies, so your analysis has more punch relative to company outsiders.  Insiders will still do better.

All that said, I suspect that these stocks will do well on average.