What are your thoughts on Plurilock Security? It seems to be continuing to execute well with some nice additions to their board of directors/advisors as well. They had a nice news release that highlights their continuing growth. Keeping in mind it really is a true microcap at these levels, do you think it could be added to a higher risk part of my portfolio in expectations that they continue to execute well? They also have a fairly high short position against them that at these depressed levels seem interesting. Thanks for any insight
With market cap at $29M, it is very speculative, and we would typically not endorse on size alone. It has a decent revenue base ($67M YTD) and balance sheet. It is losing money and cash flow is negative. Insiders own 4%. The stock is not doing much and might see some tax loss selling. But it has been busy for the past three months, announcing some significant contracts and partnerships. Its authenication systems have some AI connection as well which could attract investors. The stock spiked in August on news of a patent and a government contract, and has pulled back extremely harshly since then. We would consider it OK. As part of a microcap basket of several stocks we would be OK buying a little for the most speculative of investors. But this is not a strong endorsement overall.