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Rich Howe

Chief Analyst, Cabot Micro-Cap Insider

Rich is a trained economist and Chartered Financial Analyst (CFA). He has researched and invested in stocks for more than 20 years and has become a recognized expert in micro-cap stock investing. He started his career at investment advisory firm Eaton Vance where he covered a wide range of sectors including software and internet, financials, and health care.

Following his time at Eaton Vance, Rich joined the Citi Private Bank Private Equity Research team and led the creation of a private equity and real estate fund-of-fund that raised over $300 million in capital commitments from sophisticated high net worth individuals and institutions.

Rich left Citi to launch Stock Spin-off Investing, a research service focused on tracking and identifying the most promising stock spin-offs and special situations.

His recommendations have consistently outperformed the market.

From this author
I’ve never liked gambling. I went to Las Vegas once with friends and had a blast. But that was because the weather was beautiful, and we sat by the pool during the days and then had some good nights out. Some of my friends loved to play blackjack. I enjoyed it for entertainment value, but I was only interested in playing at tables with low minimums. Why? Because I know that the house always wins! (Unless you are Edward Thorp, the famous card counter.)
The banking crisis has dominated the headlines, but fears of contagion are overblown. Here are 2 micro-cap banks to buy at a discount.
The 2-year bear market in biotech stocks has some trading for less than their cash on hand. Here are 3 I like.
This week, all everyone cares about is the banking system, and so I’ve been thinking about it a lot. I continue to believe that this banking crisis is manageable and NOT systemic. Here’s how I see it…
For my introduction this week, it feels like I can’t write about anything other than Silicon Valley Bank. What a stunning collapse! And before I get into my thoughts, I wanted to plug using Twitter.
If you love Peter Lynch’s books there’s more from him to read. Here is a treasure trove of 181 articles and 3 key lessons to get you started.
Today, I’m recommending a micro-cap “thrift” (a type of bank) that is likely to get acquired within the next year or two.

Key points:
· Insiders are buying like crazy.
· The stock is buying back its own stock hand-over-fist.
· 70% of thrifts ultimately get acquired, and this thrift will be eligible to be acquired in 12 months.

All the details are inside this month’s Issue. Enjoy!
As expected, the second half of February was pretty weak from a stock market return perspective.But February is over and March and April tend to be seasonally strong, according to Ryan Detrick of Carson Investment Research.
Negative enterprise value stocks are hard to find. But having outperformed the market by more than 5-to-1, they’re worth hunting for.
With rates rising and bonds losing value, dividends are all the rage these days. And these little-known dividend payers are offering some attractive yields.
Small caps frequently trade at a discount to larger peers, and this head-to-head look at two peers in the same sector should show you why small caps are the better value.
I recently wrote about why I like investing in spin-off stocks, which is why I’m a fan of these three “Spin-off Machines.”
This week, I want to use my introduction to spend some time diving into Liberated Syndication (LSYN) because I spoke to the CEO, Brad Tirpak, for about an hour last week.

To review, Liberated Syndication stopped trading publicly in late 2021 because it was so behind on its historical financials, that FINRA/SEC revoked its ability to trade. So since late 2021, the stock has been private.
Stock spin-offs are one of my favorite types of “special situation” investing, this is just one reason why.
For the first time that I can remember, I didn’t watch the Super Bowl. We had been skiing all weekend in New Hampshire, and I was EXHAUSTED. I think our entire household was asleep by 8 p.m. It sounded like an incredible game, but I’m not upset I missed it. An amazing night of sleep was worth it. Maybe that means I’m getting old?
Today, I’m recommending a tech company that is growing like crazy yet trades at a “value” price.

Key points:

· High insider ownership.
· Hidden assets that will eventually be monetized.
· Buying back stock (over 20% of shares already retired).

All the details are inside this month’s Issue. Enjoy!

The stock market finished January on a strong note which bodes well for the remainder of the year. Despite a rally in the market, I’m adding new ideas to my watch list on a weekly basis. I’m continuing to find plenty of ideas that look attractive on an absolute and relative basis. I look forward to sharing my latest idea in next week’s new issue of Cabot Micro-Cap Insider.
The S&P 500 is off to an excellent start in 2023 and according to Ryan Detrick of Carson, that bodes well for the rest of the year. I’m continuing to see many opportunities in the micro-cap world. The two areas that seem the most interesting to me right now are the biotech and energy sectors.
Dividends are a useful way to add yield to your portfolio and these three dividend-paying stocks look good for 2023.
When looking at small-cap stocks vs. large-cap stocks you’ll find that small-cap stocks are undervalued. Here’s a case study to demonstrate (and two stocks I like).
2023 is off to a good start! So far in January, the S&P 500 is up 4.2% and many of our micro-cap recommendations are also starting the year off on the right foot. We will see if the positive momentum can continue to close out the month. Earnings season is officially beginning for large-cap stocks.
Large-cap stocks are a crowded field. To beat the market, you need to find an investing niche. Micro-cap stocks are mine.
Today, I’m recommending a biotech company.

Key points:

· I expect a dividend within 15 months representing 126% of its market cap.
· Asymmetric upside potential beyond the upcoming dividend.
· High insider ownership and insider buying.

All the details are inside this month’s Issue. Enjoy!
Happy new year! Hope you were able to take some time off to re-charge and get ready for the new year. I enjoyed my time off, but December has been a month of sickness for the Howe family. Covid, ear infections, colds – you name it, my family got it. Here’s to a (hopefully) healthier January! This week was another very slow week from a micro-cap news cycle perspective.
Want to construct the “perfect stock”? Here are the 13 attributes to look for, according to legendary investor Peter Lynch.
Sustained cash flow in energy stocks and an evolved approach to CAPEX could prolong an energy bull market and make this stock an attractive micro-cap.
I hope you’re having a wonderful holiday week. I celebrated Christmas with my wife and kids (Gracie-7 and Tripp-4), as well as my parents and in-laws. I’m lucky because we all live in the Boston area – so travel was minimal. We enjoyed tons of good food and wine.
SPAC investing has become all the rage on Wall Street. But does that mean you should invest in one of them?
I once attended a lecture by Richard Pzena, and was blown away by his investing lessons. Here are three that really grabbed me.