Former Net Cash AGAE Now Up +180%

I hope you are paying attention

I found deep value Allied Gaming & Entertainment AGAE last year when it was trading for a 30% discount to net cash on the balance sheet. The thing that stood out was the industry it was in, combined with the consistent revenue growth. Esports is a very good industry. You wouldn’t expect to find a company trading for less than rough liquidation value in it. Being the micro-cap AGAE is it actually was.

The stock had a nice 80% run just a couple months after my post on it here last year. It just had another big run today, and traded into the $2.00s and closed at $1.74 today. This is a multi-year high price here and a good spot to lock in some profits.

I couldn’t find the news catalyst or anything that prompted the run. It’s now roughly 2X net cash and late, according to the SEC, to file the recent annual report. That’s more than enough to warrant some profit taking in my book.

Good deep values less than net cash don’t come around very often. The really cool thing about this one was it was this cheap in the bull market in 2024.

Another net cash stock I have written about in the recent past is Quantum SI (QSI). It’s now trading slightly over net cash but has some recent technical strength. It bottomed out and is getting momentum. Net cash is $177 million and market cap is $276 million. Earnings are coming in three days on May 15th.

I say I hope you are paying attention to these posts because the open rate has been about 20% the past several posts. Make sure the emails are not coming in spam.

Full disclosure: I have a position in QSI