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LuxUrban Hotels (LUXH): $4.87
Market Cap: $179.39M
Last summer, during a trip to visit the University of California, Los Angeles, we ended up staying at the Luxe Hotel on Sunset Blvd primarily because of its proximity to campus. The hotel was excellent and when I saw an insider purchase by the CEO of LuxUrban Hotels (LUXH) last week, I was curious to see if they owned the Luxe Hotel considering the similarity in their names. Reviewing the list of “partners” on the company’s website it did not appear to be the case.
I prefer to avoid microcap companies because of the risks and uncertainties associated with them but unfortunately this is the second time this month we are writing about one. The first one was SuRo Capital (SSSS), a company that invests in technology startups, where the CEO was buying shares because the company trades at a nearly 50% discount to NAV.
As we approach the end of the quarter, the number of companies entering their quiet periods, where executives are not allowed to transact in their company stock, has increased, leaving us with very few interesting companies to pick from. This week, I was trying to decide between writing about LuxUrban Hotels and Pulse Biosciences (PLSE), a medical devices company that delivers nanosecond pulses of electrical energy to cells. The fact that Pulse Biosciences is an early-stage pre-revenue company and the insider purchase of LuxUrban Hotels was a flip flopper situation, led me to focus on LuxUrban instead. The stocks of both companies have experienced a lot of strength this year with Pulse up more than 256% and LuxUrban up nearly 194%.