PESO is a microcap dollar store retailer that operates in Mexico. The company is still tiny, but growth was really impressive, more than 50% in the last few years. PESO is still burning cash, and would likely need to raise capital soon to support growth. PESO is trading at 0.9x Price/Sales (Gross margin was 37%), DOL is trading 4.9x Price/Sales (gross margin was 47%). PESO is an interesting name to watch, but we are not in the habit of recommending $15M market cap companies--much too much risk. CNO is another interesting microcap name, providing nanocrystalline materials through grain size reduction. Growth in the most recent quarter was 177%, a meaningful acceleration. CNO is profitable, generating positive cash flow, and the balance sheet is also okay. CNO is a very interesting name with positive momentum, but again investors need to be mindful of the extreme risk in size and liquidity here.
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