With strong industry tailwinds, is there a chance that Treecon Resources Inc (OTC:TCOR) could nearly double to $1.50 in the near term and close its discount to its book value per share? TCOR is a holding company that, through its subsidiaries, operates a portfolio of businesses based primarily in the east Texas forest region, including:
- Logging and heavy equipment dealership operations
- Lumber and treating operations
- Oilfield services facilities
- Real estate portfolio consisting primarily of timberlands
As lumbar products suppliers like Huttig Building Products, Inc. (NASDAQ:HBP) and Bluelinx Holdings Inc. (NYSE:BXC) are posting very strong financial results due to the tight home construction market, it’s possible that TCOR’s positioning in this sector might get a boost. In fact, at $0.81, the stock has quietly risen 80% in 2021 and has surpassed its all time high of $0.76 set in 2006. BXC, which we began covering in June 2017 at $7.20, is now trading at $66.81 after rising 15.85% on Friday, resulting in a trailing one-month performance of near 60%. (On a side note, we are also taking a peak at HBP).
For some of our original perspective on TCOR, please take a look at an RFT (Reasons for Tracking) article we published on the company on February 6, 2019 when the stock traded at $0.59. Now, with lumber prices on the rise amid strong construction markets, government stimulus and pandemic related supply chain issues, we think the stock is worth revisiting. We are currently working on an updated document to give you some more clarity. But, we thought it appropriate, due to the time sensitive nature of this story, to convey our initial thoughts.
We are also taking an early look at Cryo-cell International Inc (OTC:CCEL), a company that provides private and public cord blood banking solutions for stem cell treatments. They are the first private cord blood bank to store stem cells and have over 500,000 clients.
Besides monitoring how the company can perform with its new growth prospects, things that interest us about Cryo-Cell include:
- High recurring revenue base due to fees it collects from its private blood bank operations where the customer pay an annual recurring storage fee
- High degree of operating leverage
- New contract with Duke University that will alter its business plan
- Duke’s contract could spur higher revenue growth
- Its free cash flow
Maj and GeoInvesting research contributor Noah Goldberg spoke about the company in a recent recorded conversation, and we’ll be making that available tomorrow.