Digging for Value in Nano-Caps: Boomer Holdings

When we reported on the SumZero community’s best performing stocks of 1H2020 last October, we observed that the “top 10 performing ideas published in 2020 are all for nano, micro, or small cap companies, with low opening prices but an average of 274.7% returns,” further noting that of those 10, “six ideas had opening prices lower than $1 in the stock's given currency, while the remaining four ideas were less than $20.”


Since then, we’ve seen more and more ideas on nano, micro, and small cap companies submitted to SumZero. Some, like Maven LLC Partner Scott Preston's idea long Tetra Technologies Inc (TTI: US) – which he called “the greatest asymmetric trade in the market” in his idea last June – have already seen returns of well over 100%: as of its $2.55 market close on Feb 19, TTI’s RTD was 473.81% on Preston’s entry point of $0.42. Those thinking it’s too late to find an entry point on that particular idea should note that Preston’s price target is $5.10. 


In looking over ideas contributed by SumZero members on small and micro-cap stocks, one name stood out due to a combination of its predicted return, low entry price, and timeframe. Boomer Holdings Inc. (BOMH: OTCQB) is a wellness company with a $171M market cap that sells an array of products through its websites, partnerships with Tommy Bahama (a subsidiary of CVS: NYSE) drugstores.


Boomer Inc. has two primary businesses: 1) it sells PPE products, including face masks embedded with nano-silver (an anti-microbial agent), sourced from Vietnam and 2) it sells products infused with CB5, a proprietary, FDA-compliant alternative to CBD.


Please download the full case study below and read the original research on BOMH on SumZero.