CNGA - Conair Corp

[EricSchleien]

Hi All,

 

Not too long ago I did a podcast with Jan Svenda regarding a company called Conair Corp. It's not to be confused with the company that sells hair dryers. It's an HVAC company. NoNameStocks did an interesting article on it as well. I own a small position for myself and my investors.

 

Here's the link to the podcast: https://intelligentinvesting.podbean.com/e/62-conair-corp-cnga-another-obscure-otc-stock/

 

Best,

Eric

[Foreign Tuffett]

Thoughts after some cursory research:

 

1) Company appears to be paying in to two separate multiemployer pension plans. I think these are hidden liabilities that, for whatever reason, don't show on the balance sheet. Are they holding the significant long term municipal bond position to offset/fund this liability?

 

2) Company has operated since 1964 yet still hasn't grown large enough to fully utilize its 10K sqf owned HQ building? There's a very old picture on their website of their current building, so my working assumption is that this business has shown minimal growth over extended periods of time.

 

https://theconairgroup.com/about-us/

 

3) Maybe this is paranoia on my part, but I think the "Check Out Our Stock CNGA On Pinksheets!" headline at the top of their franchising website is odd.

 

Some of the language on the site doesn't make sense in the context of a franchising opportunity. For example: "Become a shareholder and our partner! Learn more about the Conair HVAC franchise opportunities we offer."

 

Are these "consultants" management is paying with stock to do this franchising stuff advertising an actual franchising opportunity, or are they advertising the stock to patsies like us?

 

https://conairhvacfranchise.com/

 

Unless I'm missing something, it's an easy pass.