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NTG Clarity Networks Inc. (NCI $1.90)
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Biorem Inc. (BRM $1.96)
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Tantalus Systems Holding Inc. (GRID $3.31)
BRM is a very small ($33M market cap) clean tech engineering company focused on air pollution control systems. Sales growth can be volatile, but over the past couple years it has been in the low to mid-double digits. Margins are expanding and it generates free cash flows. It trades at a reasonable valuation of 9.6X forward earnings, and debt levels are reasonable. We would be OK with holding or even accumulating this name, while being mindful of its small cap risks.
NCI is also a small ($75M market cap) digital transformation solutions provider, offerring networking services and IT infrastructure. It fell sharply following its recent earnings, but sales growth is strong, margins are decent, and it trades at 8.6X forward earnings. We would be comfortable holding here, and potentially accumulating if it finds a floor and momentum begins to improve again.
GRID is a $148M market cap smart grid solution provider for utilities companies. Forward sales growth estimates are decent, in the low double-digit range, and its EBITDA margins have recently flipped positive. Debt is somewhat high, but we would be OK holding or accumulating the name here.