MachTen: A Mispriced Rural Fiber Infrastructure Play
MachTen Inc. (OTC:MACT) recently acquired AT&T’s wireline assets in Michigan’s Upper Peninsula, expanding its network by thousands of miles. The company is executing a $100 million fiber build‑out in northern Michigan, with roughly 75% of the cost covered by federal subsidies such as the ReConnect grant. Although its 2025 earnings and cash flow appear weak, the transition from copper to fiber is expected to lift EBITDA to $10‑12 million, implying a 20‑50% margin improvement. At a market cap of about $18 million, the stock trades at roughly 4× EV/EBITDA, suggesting significant upside.
Start Here: Welcome to Clayton Capital Insights
Clayton Capital Insights, a Substack run by value investor Nick Clayton, showcases a concentrated, margin‑of‑safety approach that generated a 41% return in 2025. The strategy typically holds 7‑15 high‑conviction positions, emphasizing strong balance sheets, disciplined position sizing, and capital allocation...
Forge Insurance Update: A Small P&C Insurer Reaches the Inflection Point
Forge Insurance, a nano‑cap property‑and‑casualty carrier focused on commercial auto, reported 2025 results that signal a decisive inflection point. Net premiums earned jumped 41% to $31.1 million and underwriting income turned positive at $2.4 million after a loss the prior year. Net...
Heritage Global: A Distressed Asset Platform Trading at 5x EV/EBIT and Near Liquidation Value
Heritage Global Inc. (NASDAQ:HGBL) operates a multi‑segment distressed‑asset platform that trades at less than 70% of book value and roughly 5.5 × EV/EBIT, placing it near liquidation pricing. The San Diego‑based firm has posted profits every year since 2018 and exhibits counter‑cyclical...
How to Properly Size Investment Positions
The article explains how investors can boost risk‑adjusted returns by properly sizing positions rather than merely finding ideas. It introduces a simple upside‑to‑downside framework, illustrates it with PayPal and Perimeter Solutions, and ties the ratio to a practical allocation rule...
