Companies, such as Millennium Investment & Acquisition Company, are deemed to be undervalued because their shares are currently trading below their true values. Investors can profit from the difference by investing in these stocks as the current market prices should eventually move towards their true values. If capital gains are what you’re after in your next investment, I’ve put together a list of undervalued stocks you may be interested in, based on the latest financial data from each company.
Millennium Investment & Acquisition Company Inc. (OTCPK:MILC)
Millennium India Acquisition Company Inc. Millennium Investment & Acquisition Company was founded in 2006 and with the market cap of USD $10.96M, it falls under the small-cap group.
MILC’s stock is currently floating at around -87% beneath its true value of $7.76, at the market price of $1, based on my discounted cash flow model. This price and value mismatch indicates a potential opportunity to buy the stock at a low price. In addition to this, MILC’s PE ratio is around 2x compared to its capital markets peer level of 16.5x, implying that relative to its peers, MILC can be bought at a cheaper price right now. MILC is also a financially healthy company, with near-term assets able to cover upcoming and long-term liabilities. MILC has zero debt on its books as well, meaning it has no long term debt obligations to worry about.
Sortis Holdings, Inc. (OTCPK:SOHI)
Sortis Holdings, Inc., through its subsidiaries, operates as a financial technology company in the United States. Sortis Holdings was started in 1995 and with the company’s market capitalisation at USD $10.69M, we can put it in the small-cap stocks category.
SOHI’s shares are currently trading at -76% under its intrinsic level of $3.29, at the market price of $0.79, based on its expected future cash flows. The divergence signals an opportunity to buy SOHI shares at a low price. What’s even more appeal is that SOHI’s PE ratio is trading at around 3.2x compared to its banks peer level of 16.8x, indicating that relative to its competitors, SOHI can be bought at a cheaper price right now. SOHI is also strong financially, as short-term assets amply cover upcoming and long-term liabilities.
Pzena Investment Management, Inc (NYSE:PZN)
Pzena Investment Management, Inc. is a publicly owned investment manager. Formed in 2007, and currently headed by CEO Richard Pzena, the company employs 100 people and with the company’s market cap sitting at USD $753.94M, it falls under the small-cap stocks category.