2013 Year End Review

2013 Year End Review

The year 2013 is now complete, and the stock market overall had a very good year and so did my investments.  I wanted to write-up a few of the mistakes that I made throughout the year and include a top 5 post list.  I’ve come to appreciate the publicizing of my mistakes because it requires that I review my decisions and to have a public record of the mistakes so that I do  not make the same mistakes again. Mistakes made during 2013 Do not attempt to invest in areas that are outside of your knowledge – I attempted to invest in a junior miner, but quickly realized that I wasn’t as comfortable with my analysis as I should have been.  I’m not sure if the investment was correct or not, but I do know that I wasn’t as comfortable holding the investment.  I sold out at a loss, but the lesson is that I shouldn’t have ventured into an industry that I didn’t have enough knowledge and conviction for investment purposes. Dilution is a killer – When investing in small and micro cap companies, shareholder dilution can kill your returns.  It is important to study the capital structure of…

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$NROM – Noble Romans Pizza – Undervalued Growth?

Noble Roman’s Inc ($NROM) is a company that sells pizza.  That’s a simple explanation, so let me go into more detail.  $NROM has been around since 1972, and recently has shifted its focus into the Take -N-Bake Pizza industry.  Prior to the past year, Noble Roman’s had two main lines of business: selling through non-traditional locations and through franchising restaurants.  They were not successful in the franchising business with traditional pizza restaurants, and just closed out some pending lawsuits which the company won.  The non-traditional business is now the main source of revenue and profits (grocery stores, convenience  stores, etc…) but the real opportunity arises around franchising their Take-N-Bake pizza program.   Going forward, I see Noble Roman’s focusing on selling Take-N-Bake standalone franchise licenses and growing their Take-N-Bake sales to grocery stores. Noble Roman’s is in the business of selling franchises and licenses to their pizza and subs products.  I don’t view the sub/sandwich business as being a focus for the future of the company.  All food items are handled by third party companies, so when a franchisee or licensee needs to place an order, that order is sent to third party manufacturers who will fill the orders placed.  Therefore, $NROM collects…

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