ETLT.OB: An example of a value microcap stock

Fellow Investors,

I have mentioned before that I will try not to mention any particular stock as I don’t want to be seen as impacting (i.e. pumping) the stock price in any way, but let me give one example of a value microcap stock to supplement the Successful Investing article series.

Eternal Technologies (ETLT.OB)
Market Cap: $20M-$22M
Share price: $0.50-.$0.56 (5 days range)
Diluted outstanding: 40M shares
Preferred outstanding: 0
Cash: $30M+ (restricted cash)
Debt: $0
Earning: $4M+ (and has been profitable for many years)
Retained earnings: $35M
Sales: $23M
PE = 5
P/tangible book < 1

Their business is agriculture (low tech stuff such as farming and husbandry business, and breast cancer detection business). I am predicting that they want to be a conglomerate (diverse business). Check out their 10Qs and 10Ks. ETLT business is located in China (and Asia), which I think is one of the reasons why the stock priced as it is today (fraud risk, corruption risk and emerging market risk), and also the restricted cash status.

Disclosure:
I own this stock in my portfolioI am not recommending anyone to buy or not to buy this stock.
Bulletin board stocks are usually very risky, volatile and thinly traded and not suited for many investors (and definitely not suitable for short term trade.)
I will not disclose my price target price or what I think they should worth today as I just want to give an (unbiased) example of a value microcap stock.
However, I welcome anyone who have any question (or want to discuss) about the value microcap topic or ETLT business/current valuation (statistics that I mentioned above).

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This is in a supplement to my Successful Investing article series. Check out the part 2 of the article.

Thank you for your interest,

Sidarta Tanu