Aug 16, 2026 · 42 min
Microcap investor finds catalysts in overlooked assets
Club Conversation with Leland Roach, Hidden Value in $MAYS, $BUKS, and $EVC
The conversation shows how disciplined catalyst hunting can uncover value while exposing the risks of concentration, delays, taxes, and flawed theses.
- 1Leland Roach screens overlooked OTC companies for near-term catalysts that can unlock underappreciated value.
- 2JW Mays, Butler National, and Entravision illustrate asset-based, unusual-business, and turnaround investment cases.
- 3Selling discipline requires reassessing today’s valuation, accepting mistakes, and refusing to let taxes override a broken thesis.
Don't miss
Roach’s discussion of JW Mays turns an unremarkable operating company into a case study in valuable real estate, uncertain timing, and patience.
The brief
Leland Roach traces his move from Michigan manufacturing to full-time microcap investing, building a process around overlooked OTC companies and developments the market may not yet appreciate.
His screen prioritizes near-term, relatively certain catalysts, with filings and press releases providing raw material for research before broader investor attention arrives.
JW Mays shows the appeal and danger of asset-based value: valuable Brooklyn real estate may matter greatly, but a sale can bring delays, cash burn, and no fixed timetable.
Butler National combines aerospace manufacturing and casino operations, while Entravision’s Smadex-driven turnaround offers a different path to value—and highlights the risks of unusual businesses and customer concentration.
Roach’s broader lesson is demanding but practical: sell when the thesis plays out, reassess holdings at current prices, and treat mistakes as tuition rather than identity.
What was said on this episode
19 statements · 11 positive · 6 negative · 2 neutral
Leland sells when his original investment thesis plays out unless new information changes it.
“I sell once the thesis that I originally had plays out unless some random news dropped where I could see like, you know, a large potential for cash flow in the future or something that would have to physically change my thesis.”
Listen at 20:55
Leland will exit MAYS if its building does not sell.
“If that building doesn't sell on Mays and it just sits there. I'm going to take my money and I'm just going to go somewhere else with it, you know?”
Listen at 21:47
Leland has held EVC and BUKS for years.
“I do have some companies that I've held on to for years. EVC is one of them. BUKS, Butler National Corporation is another one.”
Listen at 22:50
Leland would sell companies that become extremely overvalued after catalysts.
“At that point in time, I would sell those, those companies”
Listen at 23:45
A catalyst can cause a stock to rise 50–60%.
“a catalyst would play out and like a stock would jump like 50, 60% or whatever it was.”
Listen at 24:39
Butler National could expand installations through licensed mechanics using its patented products.
“they're working on with regulators to, you know, launch kit systems so that basically other licensed mechanics can. do those installations at their facilities using their licensed patented product. So it just seems like they have a lot of room to expand on that front”
Listen at 26:30
Butler National has a backlog of approximately $47 million.
“they have a big backlog. It's like $47 million backlog.”
Listen at 26:52
A new management perspective could unlock value at Butler National.
“I think that maybe combined with somebody else that can look at that company just maybe from a little bit of different angle might lead to some easy value. Value realization, you know?”
Listen at 28:26
U.S. strip-club attendance is declining and the industry is a melting ice cube.
“In America, nobody, I don't think, goes to the strip club anymore. Well, I should say it's declining. It's a melting ice cube.”
Listen at 29:57
RCI Hospitality management destroyed value by expanding into low-margin, money-losing businesses.
“the management team just wanted to constantly expand into other extremely low margin money losing businesses that, you know, just completely destroyed value.”
Listen at 30:45
Broadcasting deregulation and consolidation remain an active investment thesis.
“I still think that thesis is in play, especially after a vote on August 6th.”
Listen at 32:13
If the FCC ends the 39% station cap, EVC will probably sell its broadcasting arm.
“I think that, I really do think that if the FCC votes to end the 39% station cap on August 6th, that EVC is probably going to sell their legacy broadcasting arm of their company off”
Listen at 33:37
EVC's SmartX digital advertising platform will probably become standalone.
“I think that their digital advertising SmartX platform is going to be a standalone business probably.”
Listen at 33:54
Most of SmartX revenue comes from one Hong Kong-based customer.
“Most of their revenue from SmatX is one Hong Kong-based customer.”
Listen at 34:29
Adding another SmartX customer could easily double EVC revenues.
“If they add another customer to that, their revenues could double overnight easily.”
Listen at 34:34
Losing EVC's main SmartX customer could halve EVC's share price.
“If that customer pulls out, it could really damage my thesis, and EVC's price could get cut in half.”
Listen at 34:40
Investors should ground downside with asset or comparable-company value.
“make sure that you're upside. The one that your downside is kind of grounded by, you know, some sort of asset value or comp value if that company gets sold off.”
Listen at 35:47
Investors should keep their cost basis low to make concentrated risks more tolerable.
“you just keep your cost basis low so that, you know, I can afford to take a risk like this because I bought into EVC so low.”
Listen at 35:57
Investing requires weighing probabilities rather than achieving certainty.
“This is a game of chance. You weigh your options. You weigh, you know, how likely it is that something will happen.”
Listen at 37:25
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Featuring
RCI HospitalityBooks & mentions
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