Start of the Day with Chris Forte – BWLKF

Posted on August 16, 2022 by Scott Shuda

One of my all time favorite research notes appeared yesterday. Josh Ebben posted a beauty. It’s called, BWLKF – The best is yet to come, am I right?.” It’s very insightful and entertaining, not easy to do!

Like Josh, I’ve made BWLKF my #1 pick on Breakout Investors. Josh gives well deserved credit to Florian and Bryan for their superlative work uncovering this little gem. Here’s some snippets. . .

“Let’s recap. BWLKF has a platform/solution that turns excel spreadsheets used as core business applications into managed cloud solutions. Not exactly a sexy technology platform but it’s very effective in what it does. The ability to quickly bring these excel applications onto the cloud in a cell level data structure enables all kinds of value add, specifically compliance.

“This compliance value is what drove Citi to do a deal with them. The deal took months longer than expected but resulted in an enterprise license. Well worth the wait and the potential upside is still much larger than the current deal structure.

“At this time, we knew they were also working with a social media company, Facebook, and in the process of working towards a large licensing deal with them.”

Josh’s “Timeline” is a brilliant play by play of the rollercoaster ride BWLKF has been on. Microcaps often travel an adventurous road from A to B. Seeing it laid out in the timeline is a perfect example of an investment’s journey and the self talk we investors go through. Do yourself a favor and give it a read. For example…

“6/14/22 – Florian posts an update from his email exchange with CFO Andy Glavin in his Elite channel. Take away, TIME TO BACK UP THE TRUCK. Many of us in the Elite channel, including myself, made BWLKF an overweight position at this time. Market cap was about $12M, just insanity for a company executing and in no need of funding.

“6/27/22 – BWLKF hits a low of $0.22. Puke! Plug my nose and buy some more. At this point I will admit I started second guessing my perspective on BWLKF. Maybe other’s concerns about BWLKF being too small was right and it would require much more execution before anyone would care. These people weren’t negative on the company but just giving possible reasons why the stock could fall this low and potentially stay there.”

The paragraph below by Josh was a great summary. . .

“What’s next? I think the best is yet to come, am I right?

“If you haven’t yet placed your trust in Andy and Charlie I ask, what are you waiting for? My favorite management team of any stock I am invested in. They are executing and momentum is building. It wasn’t so long ago the consensus was no one will care about a tiny little company that is on the cusp of potential execution. The word potential isn’t being thrown around anymore. It simply a matter of how much and how quickly they continue to grow.”
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*It was a rainstorm of Breakout Investor companies reporting and having conference calls. The companies include HyreCar (HYRE), Quipt Home Medical (QIPT), Dolphin Entertainment (DLPN), Inuvo (INUV), Pioneer Power (PPSI), IRIDEX Corporation (IRIX), GSE Systems (GVP) and more. Tune into the Feed for analysis as the calls are sifted through.
*
Wisdom of the Crowd is out with new findings. Says Scott Shuda, “Community ownership of SMSI has fallen 9% from our last survey (from 77% to 68%) per the early results of a Wisdom of the Crowd survey initiated last week.”
*Quipt Home Medical receives commitment letter for $80M of credit facilities
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Wedge Fike posted some always interesting market insights from Avi Gilburt on the Feed entitled, “Weekend Analysis Chart.”

The economy depends about as much on economists as the weather does on weather forecasters. ~Jean-Paul Kauffmann

Good luck to all – Chris

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