In this article, we discuss the top 5 stock picks of Cannell Capital. If you want to read our detailed analysis of the fund’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of Cannell Capital.
5. Build-A-Bear Workshop, Inc. (NYSE:BBW)
Cannell Capital’s Stake Value: $30,532,000
Percentage of Cannell Capital’s Portfolio: 4.61%
Number of Hedge Fund Holders: 19
Build-A-Bear Workshop, Inc. (NYSE:BBW) is a multi-channel retailer of stuffed toys and related items. As of January 29, 2022, Build-A-Bear Workshop, Inc. (NYSE:BBW) has 346 stores in operation, including 305 in the US and Canada, 41 in the UK and Ireland, and 72 franchised locations throughout other countries.
Build-A-Bear Workshop, Inc. (NYSE:BBW) was Cannell Capital’s fifth-largest holding at the end of Q1 2022, after increasing its position by 30%. The hedge fund first acquired Build-A-Bear Workshop, Inc. (NYSE:BBW) shares in the fourth quarter of 2012, paying an average price of $3.82 per share. Cannell Capital was the leading shareholder of Build-A-Bear Workshop, Inc. (NYSE:BBW), with 1.67 million shares worth over $30.53 million.
The number of hedge funds tracked by Insider Monkey having stakes in Build-A-Bear Workshop, Inc. (NYSE:BBW) grew to 19 in Q1 from 13 in the preceding quarter. As a result, the hedge funds’ collective net ownership increased by more than $13.77 million to $66.18 million.
4. The ODP Corporation (NASDAQ:ODP)
Cannell Capital’s Stake Value: $31,340,000
Percentage of Cannell Capital’s Portfolio: 4.73%
Number of Hedge Fund Holders: 24
The ODP Corporation (NASDAQ:ODP) provides business services, products, and digital workplace technology solutions for small, medium, and large organizations. The corporation runs 1,400 retail locations, e-commerce platforms, and a business-to-business sales team.
Hedge fund sentiment around The ODP Corporation (NASDAQ:ODP) waned in Q1 2022, with 24 long hedge fund positions. In contrast, 28 funds had a positive stance on the stock in the previous quarter. HG Vora Capital Management held the largest stake in The ODP Corporation (NASDAQ:ODP), with a position worth $229.15 million at the end of March. Greenlight Capital followed it with a $64.40 million position.
Regulatory filings revealed that Cannell Capital owned 683,827 shares of The ODP Corporation (NASDAQ:ODP) at the end of the first quarter of 2022, valued at $31.34 million, representing 4.73% of the portfolio. The ODP Corporation (NASDAQ:ODP) has been in Cannell Capital’s portfolio since the second quarter of 2021.
3. Heritage-Crystal Clean, Inc (NASDAQ:HCCI)
Cannell Capital’s Stake Value: $33,246,000
Percentage of Cannell Capital’s Portfolio: 5.02%
Number of Hedge Fund Holders: 15
Heritage-Crystal Clean, Inc (NASDAQ:HCCI) provides used oil collection, hazardous and non-hazardous waste disposal, and parts cleaning services to small and mid-sized clients in the industrial and auto maintenance sectors in the US and Canada through its subsidiary, Heritage-Crystal Clean, LLC.
On May 16, Barrington analyst Kevin Steinke increased his price objective on Heritage-Crystal Clean, Inc (NASDAQ:HCCI) to $40 from $39 and reiterated an Outperform rating on the stock. According to the analyst, Q1 results were above expectations, and the business also upped its predictions.
In Q1 2022, investors were enthusiastic about Heritage-Crystal Clean, Inc. (NASDAQ:HCCI), and 15 hedge funds owned positions worth $105.18 million in the company, compared to 14 funds with stakes valued at nearly $105.45 million a quarter earlier.
Insider monkey data shows that Cannell Capital owned 1.12 million shares of Heritage-Crystal Clean, Inc. (NASDAQ:HCCI) at the end of Q1 2022, worth more than $33.25 million, representing 5.02% of the portfolio. Cannell Capital is Heritage-Crystal Clean, Inc. (NASDAQ:HCCI)’s most significant stakeholder.
2. Franchise Group, Inc. (NASDAQ:FRG)
Cannell Capital’s Stake Value: $33,507,000
Percentage of Cannell Capital’s Portfolio: 5.06%
Number of Hedge Fund Holders: 21
Franchise Group, Inc. (NASDAQ:FRG) owns and runs companies open to franchise opportunities. Its six operational sectors are Vitamin Shoppe, Pet Supplies Plus, Badcock, American Freight, Buddy’s, and Sylvan. Securities filings show that Cannell Capital owned 808,762 shares of Franchise Group, Inc. (NASDAQ:FRG) at the end of March 2022, worth $33.51 million, representing 5.06% of the portfolio. In addition, the hedge fund boosted its stake in the company by 32%.
On July 5, Baird analyst Mark Altschwager reiterated an Outperform rating on the shares of Franchise Group, Inc. (NASDAQ:FRG) while lowering her price objective to $42 from $53. The expert noted that negotiations between Kohl’s Corporation (NYSE:KSS) and the winning bidder, Franchise Group, Inc. (NASDAQ:FRG), fell apart. He also decreased his projections and price goal due to the buyout being off the table and a worsening retail environment.
21 of the 912 hedge funds had positions in Franchise Group, Inc. (NASDAQ:FRG) as of the first quarter of 2022, worth $180 million, compared to the same number of funds in the preceding quarter holding stakes in Franchise Group, Inc. (NASDAQ:FRG) worth $215.60 million.
1. North American Construction Group Ltd. (NYSE:NOA)
Cannell Capital’s Stake Value: $37,397,000
Percentage of Cannell Capital’s Portfolio: 5.65%
Number of Hedge Fund Holders: 10
North American Construction Group Ltd. (NYSE:NOA) provides heavy construction, mining, and equipment maintenance services in Australia, the US, and Canada. The business ran a fleet of heavy equipment consisting of 632 units as of December 31, 2021. North American Construction Group Ltd. (NYSE:NOA) is the biggest holding in Cannell Capital’s portfolio.
At the end of March, a total of 10 hedge funds tracked by Insider Monkey held long positions in North American Construction Group Ltd. (NYSE:NOA), an increase of 2 hedge funds from the fourth quarter of 2021. In addition, in April, North American Construction Group Ltd. (NYSE:NOA) announced a quarterly dividend of C$0.08 per share. The company has paid dividends every year since 2014.
According to Insider Monkey’s hedge fund database, Cannell Capital held the most prominent position in North American Construction Group Ltd. (NYSE:NOA). Cannell Capital had a $37.40 million stake in the company. Holding an $11.16 million position in North American Construction Group Ltd. (NYSE:NOA), Renaissance Technologies is the second largest shareholder.
You can also take a peek at Top 10 Stock Picks of James Morrow’s Callodine Capital Management and Top 10 Stock Picks of Roberto Mignone’s Bridger Management
