I have a relatively short article for today to discuss why I’m taking new long positions in SIRC and ALPP. Let’s get to it!
SIRC has been a relatively new company for me which I’ve been covering on here for a few weeks but following passively for several months. I won’t get into extreme detail about why I’m a big fan of SIRC, you can read all of my SIRC articles on my blog going through it, but I am very excited to now have a long position in SIRC.
In general, SIRC has stayed relatively flat for the last several months and failed to sustain a higher share price after their monster Q3. That was very puzzling to me as I expected their rally of 0.40-0.50+ to last into perpetuity (assuming the businesses stayed on track). So needless to say, I started to take SIRC much more seriously as potentially undervalued.
Well today is the day where I put my money where my mouth is! I don’t like to disclosure actual dollar figures or numbers of shares, but I now have a long position with a weighted average cost basis of 0.3559 (I think I moved the ask a little, LOL!).
I firmly believe SIRC is undervalued. I think too many people are sitting on the sidelines waiting for the results to show up in filings consistently rather than taking the educated leap of faith on SIRC. We’ve already seen a monster quarter, and all signs point to subsequent quarters being even better. I don’t see why people are investing in idiotic scam shell companies when we have a high growth, real, profitable business right here in front of us trading at super low multiples.
Yes, SIRC has some things it needs to clean up. But the core fundamentals of the company and operations are so strong that I am fairly confident that all of those things will be cleaned up (and not get worse, as what happens with so many on the OTC). I’ll leave it at that for now and refer you to my more detailed analysis posts.
All in all, glad to be part of the “long” community, and as always, I’ll continue to cover SIRC with an updated disclosure below 😊.
ALPP is a more interesting story for me. I bought in around 1.55 a few months ago and then needed to sell to fund an investment property down payment (perhaps some articles to come about that as well). Needless to say, I cashed in a small profit at around 1.70 per share, but at the time I was actually quite concerned because I thought it was undervalued.
Unfortunately for shareholders, the share price proceeded to plummet about 35% since then and has bottomed out to about 1.10 per share when writing this. So while the fact that I sold worked out, it doesn’t make any sense to me.
While I don’t think ALPP is going to be up 500% in six months (but I hope it is 😊), this is still a high potential company with a solid base to shield it from volatility. This is not your typically boom or bust growth tech stock. The company is conglomerate that has steady revenue and profit businesses (stabilizers) and high growth businesses (drivers).
Because of that solid base, which is more unique to ALPP, I don’t understand ALPP’s volatility like your average, run of the mill, microcap tech stock. If a certain piece of technology doesn’t work or doesn’t meet expectations, the company isn’t completely sunk. They have a base to ensure its continued existence.
So the volatility is a head scratcher to me, especially after the share price settled down for a while after the hype of early 2021.
Lastly, we have a couple key catalysts coming up which I think will be crucial for this year’s success:
- Release of Q1/Q2 financials later this year. I do not expect anything groundbreaking in the 10k, but these quarterly reports will be very key tests for how well the company is incorporating its acquisitions. By Q2 or Q3, I expect profits.
- Acquisitions. We have seen the company issue a release saying they are issuing more shares for a maximum of 50m in capital. This is almost certainly directly related to a large acquisition which could be transformative.
- Driver progress. I think once we start seeing initial batches of drones, new battery tech deployed, etc. by Q3/Q4, I think investors will calm down and remember that transformative technology ALPP is developing internally.
So all in all, I’m still firmly of the opinion that ALPP is still undervalued and therefore decided to buy back in. Frankly, I would have bought it at a higher price!
In conclusion, I’m very excited to have some skin in the game on these now (and again for ALPP). As I always say, I only invest for the long term. So I’m not banking on a quick six-month pump and exit, I truly think that these companies can achieve 20-30%+ annual returns over the next decade.
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DISCLAIMER – AT THE TIME OF WRITING THIS ARTICLE I HAVE A LONG POSITION IN $SIRC AND $ALPP. THIS ARTICLE IS NOT FINANCIAL ADVICE AND IS INTENDED ONLY FOR EDUCATIONAL PURPOSES. I AM NOT A FINANCIAL ADVISOR. AT THE TIME OF WRITING THIS ARTICLE, PERSONS AFFILIATED WITH THE COMPANY ANALYZED ABOVE MAY BE PROVIDING MONETARY COMPENSATION AS MONTHLY PATRONS THROUGH MY PATREON. THIS COMPENSATION IS NOT PROVIDED IN RETURN FOR ANY SERVICE, WRITING ABOUT A PARTICULAR TOPIC, AND/OR FAVORABLE OR UNFAVORABLE OPINIONS. MY PATREON SUPPORTERS HAVE NO INFLUENCE ON THE CONTENT OF MY ARTICLES.