A Note to My Followers

To All:

It is bittersweet for me to say that as I focus on other microcap investing ambitions and initiatives I will no longer be updating and maintaining this site. Past content will be available to be viewed, but no new content will be posted going forward.

Since launching UnusualStocks I have had such an amazing experience interacting with so many of my followers, as well as other successful microcap investors around the world. The experience has been incredibly gratifying, humbling, and rewarding in more ways than I could possibly describe. If you have learned just one thing from me or my site, I consider this venture to have been a success.

We have experienced some awesome gains together, none better than a recent 400%+ plus gain that I suspect isn't done yet. We have learned valuable lessons together, including knowing when to get rid of the losers and invest more in the winners. But, if you take anything away from me and what I advocate for, always remember that knowing your positions better than most allows you the confidence to hold (and add) thru tough periods. Always #trustinyourwork.

Please continue to interact with me on twitter @unusualstocks, or contact me anytime by clicking here

Stay in touch, and I wish you much investing success ahead.

So long... for now.

Scott

P.S. What have you learned from following me? I would love to know. Please add a comment below if you feel like doing so. 

Ackroo CEO Letter to Shareholders- August 2016

The CEO of Ackroo recently sent out a Letter to Shareholders via the company's email newsletter. I am posting the full letter below in case you were not on the newsletter to receive. It appears that the company will be posting all newsletters online in the future at this link: 

http://ackroo.com/investor-relations/investor-newsletter-archive/

Portfolio Shakeup and New Investment Announcement

I mentioned in this post from the past week that I would consolidating my portfolio down into 4 companies from the current 6 that I own. As I mentioned in that post:

There are so many great companies that I "want" to own, but only a handful that I feel I "must" own that can drive significant shareholder returns. I am no longer interested in holding positions that will represent under 15% of my portfolio. In other words, I will not own a company if I am not committed to making it at least 15% of my portfolio. I put a lot of time into learning my investments in a way that I feel confident that I know them better than most, and structuring my portfolio in a way that reflects that by being highly concentrated is important to me. As Buffett said best, "diversification may preserve wealth, but concentration builds wealth."

Ackroo Shows Robust Organic Growth with Q2 2016 Results

Ackroo's Q2 2016 results may prove to be one of those moments in the company's history that we look back on and say..."wow, that was the one". Investors that are in-tune with Ackroo's business and the strategic partnerships that Steve Levely, CEO, has been executing on, should have been able to sense that the potential for organic growth to accelerate was near. Well, this quarter, with 77% revenue growth over the same period in 2015 (roughly 30% of that organic), is the start of what I believe will represent significant organic growth in the quarters and years to come.

The business model is proving to be one that works. I do not think anyone could suggest it doesn't at this point. Once cash is available for growth initiatives vs. debt initiatives (such as in the past), the company can aggressively scale (vs. conservatively scale) what has proven itself to be a successful business model.

General Portfolio Comments and Recent Portfolio Company Updates

Over the course of the next week I will be shaking up my portfolio to limit my positions to no more than a maximum of four companies. There are so many great companies that I "want" to own, but only a handful that I feel I "must" own that can drive significant shareholder returns. I am no longer interested in holding positions that will represent under 15% of my portfolio. In other words, I will not own a company if I am not committed to making it at least 15% of my portfolio. I put a lot of time into learning my investments in a way that I feel confident that I know them better than most, and structuring my portfolio in a way that reflects that by being highly concentrated is important to me. As Buffett said best, "diversification may preserve wealth, but concentration builds wealth."

A few quick portfolio company updates:

It's Time for Kraken Sonar to Shine

When I wrote my initial investment thesis in October of 2015 for Kraken Sonar (PNG.V), I knew a few things were going to be critical to ultimately be successful with the investment. As a very early investor in Kraken, I knew that patience on my part would be key. It has been interesting to see how, since I initially invested in Kraken, it has slowly been discovered by others. However, it is still an incredibly undiscovered and under the radar company...but I suspect that will change over the remainder of 2016 for reasons I will discuss below. The other key factor to ultimate success is obviously execution of the business by management. Kraken has had some very nice "wins" over the past year that have validated their technology and I anticipate that momentum to continue.

My Visit with Ackroo and CEO Steve Levely

This past week I flew up to Ottawa to spend some time with Ackroo and CEO Steve Levely, and I had a great visit. It was my first trip up to Canada in a while, and I had forgotten what a beautiful place it is. I look forward to future visits to Canada.

In addition to spending time with Steve, I was able to spend time with some of the employees around the office, including the developers. The common sense I got, no matter who I was speaking to, was how the team could just sense the strong growth opportunities that lie ahead. More impressive to me was that they are all amazingly calm and confident that the technology is ready to be scaled. 

Concentrate on 'Concentrating' your Microcap Portfolio

The age-old debate of portfolio diversification vs. portfolio concentration is as relevant today as it was decades ago. Similar to almost all my educational blog posts, my conclusion here is that there is no 'one size fits all' and it depends on many personal factors as to how much 'concentration' within your microcap portfolio is right for you. I would argue, however, that if you are a microcap investor that is passionate about continuing to learn about the businesses you own to the point of obsession, then the best opportunity to create significant wealth is through portfolio concentration. 

Help! When do I Sell a Position after a Big Move Up?

In light of the big recent move in ProMIS Neurosciences (PMN.TO), I have been flooded with questions from readers about 'when is the right time to sell?', so I thought it would be helpful for everyone if I posted my thoughts on here. Quickly though...if you find yourself faced with the dilemma of when to take profits, pause for a second and congratulate yourself. Stay humble, but smile for a second and pat yourself on the back. Investing isn't easy despite what some may think or tell you. It is flat-out hard work.

A Brief Portfolio Review and Update

There were several news-worthy events during the week relating to some of my portfolio companies, so I thought I would do one post summarizing some of the events from the week and making some general comments on each of my positions. Before doing so, just a reminder to everyone how important it is to do your own due diligence and not to follow me into (or out of) a position. We all have different investing styles with different tolerances for volatility. It is important that you find what works for you and stick to that process. If you struggle with the concept of potentially holding a position for 2+ years, I would suggest that microcap investing may not be best for you.

ProMIS Neurosciences Investor Presentation by Michael Bigger

I wanted to share with everyone Michael Bigger's great powerpoint on ProMIS Neurosciences (PMS.TO). Michael owns a bit over 10% of the company and is a very successful long-term investor. 

You can read Michael's blog by clicking here

I hope you guys enjoy!

Multi-billion dollar microcap opportunity hiding in a dark alley by biggercapital

Q&A Regarding the Ackroo and First Data Partnership

Earlier this week Ackroo announced a highly strategic partnership with First Data Canada, a subsidiary of First Data Corporation, the largest payment provider in the world in terms of merchant locations ($6M+ locations), having the biggest market share in the USA at around 55% of all merchant locations. This is a significant milestone for the company, and a very unique one, as it is not everyday you hear about a $12B+ market cap company selecting to partner with a $3M market cap company. 

An Update on Ackroo: The Closing of the Private Placement and the New Partnership with First Data Set the Stage for Significant Organic Growth

There have been several pieces of significant news this week from Ackroo (AKR.V), one of which, in my opinion, is game-changing and elevates Ackroo to a whole new level within the loyalty and gift card market. The closure of the private placement and the announcement of Ackroo's partnership with First Data, the largest POS provider in the USA and one of the largest in the world, sets the stage for significant organic growth ahead that will fuel the company quickly to profitability and positive cash flow, thus allowing for acquisition opportunities to be acted upon later in 2016. 

Recap: ProMIS Neurosciences Investor Call with Eugene Williams and Elliot Goldstein

Yesterday I hosted a conference call with ProMIS Neurosciences (PMN.TO). Joining me were Gene Williams (Executive Chairman) and Elliot Goldstein (CEO/President), in addition to roughly 40 other current or potential investors from the USA, Canada, and several European countries. It was by happenstance that yesterday morning the company released a very material press release announcing that multiple unique therapeutic candidates have successfully completed the screening stage of validation and will be further developed as potential treatments for Alzheimer’s disease. So, there were lots of great things to discuss and Gene and Elliot could not have been more generous with the time that they spent with us.