Alpha Buying: Unlocking Value Through a Catalyst

The Power of Patience: Leveraging Schedule 13D Filings

Individual investors possess a unique advantage: the ability to take a long-term view. Unlike institutional traders who may react to every news flash or economic forecast, we can patiently observe, dig deeper than the headlines, and position ourselves ahead of major developments. Among the most effective tools for this approach are Schedule 13D filings.

Schedule 13D is required when an investor acquires more than 5% of a company's shares and intends to take an active role. This is more than a regulatory formality—it signals that a well-resourced, strategic investor sees a significant disconnect between a company’s market price and its intrinsic value, and is prepared to act. When such filings appear, the investment landscape often shifts.

Spotlight on Recent 13D Filings

This edition of Alpha Buying highlights four companies—MYO, TRMD, LAKE, and CVR—where recent 13D activity merits attention. These are not high-flying momentum stocks, but rather overlooked opportunities where value, lack of attention, and the potential for corporate change converge.

Myomo, Inc. (AMEX: MYO) – Governance as a Catalyst

Myomo is a niche medical technology firm specializing in wearable robotic devices that aid individuals with neuromuscular impairments. Its flagship product, a powered arm brace, leverages sensors and software to interpret user intent and assist with movement, primarily serving those affected by stroke, spinal cord injuries, or other neurological disorders. While revenue growth has been inconsistent due to reimbursement hurdles and lengthy sales cycles typical in medical devices, the underlying technology addresses a growing clinical demand.

Recently, Horton Capital Partners surpassed the 5% ownership mark and filed a Schedule 13D, signaling a shift from passive to active involvement. Their primary objective is to overhaul the company’s governance, advocating for annual director elections instead of a staggered board.

Though this may seem procedural, such changes can be transformative for smaller firms. Staggered boards often insulate management, while annual elections enhance accountability. For a stock trading at low valuations and largely ignored by analysts, this governance push could spark broader strategic discussions.

The key takeaway isn’t whether the proposed changes are immediately adopted, but that a committed shareholder is challenging the status quo. For early investors, MYO now presents an opportunity tied to potential governance-driven value creation.

Lakeland Industries, Inc. (NASDAQ: LAKE) – An Activist Steps In

Lakeland Industries produces protective apparel for hazardous and industrial settings, offering both disposable and reusable garments that shield workers from chemicals, fire, heat, and biological threats. Its customer base includes sectors such as manufacturing, oil and gas, utilities, healthcare, emergency services, and government agencies. While demand can fluctuate, the need for safety gear is ongoing and often mandated by regulations.

The company drew attention when Global Value Investment Corporation disclosed an 8.38% stake. This is a significant position, large enough to influence outcomes and prompt engagement with management.

The language in the filing is classic early-stage activism: the investor reserves the right to discuss operations, governance, capital structure, and strategic alternatives. There are no public demands yet—just a clear signal of intent and flexibility.

This is often how activist campaigns begin. The initial filing establishes a foothold; subsequent actions clarify the activist’s goals. Investors who recognize these early signals often benefit more than those who wait for a fully developed campaign.

Chicago Rivet & Machine Co. (AMEX: CVR) – Microcap Activism with Impact

Chicago Rivet & Machine is a small-cap manufacturer specializing in rivets, fasteners, and assembly equipment, serving industries such as automotive, aerospace, and general manufacturing. With modest growth, limited analyst coverage, and thin trading volumes, the company often escapes institutional notice—even when its financials are solid and its assets undervalued.

The recent 13D filing by a group led by Galloway, which now owns about 6.45% of the company, is noteworthy. This stake was accumulated gradually over more than a year.

The filing makes it clear: the shares are considered undervalued, and the investor may engage with management and the board regarding strategy and alternatives. In the microcap space, even one determined shareholder can alter a company’s direction.

Change in these situations is rarely swift—liquidity is limited and timelines are extended. However, when activism meets neglect, the results can be significant. CVR now has a visible path to a potential catalyst where none existed before.

TORM Plc. (NASDAQ: TRMD) – A 13D as a Blueprint for Mergers

TORM plc operates a fleet of product tankers transporting refined petroleum products worldwide. Its financial performance is closely tied to global trade patterns, refinery activity, and spot shipping rates, making it a cyclical business. Like many shipping firms, TORM’s valuation is driven more by asset values and cash flow than by steady earnings, and capital allocation decisions can greatly affect shareholder returns.

TORM’s recent Schedule 13D is unusually candid. The investor explicitly states that industry consolidation is beneficial and that they are exploring strategic options, including a possible merger with Hafnia.

This filing goes beyond standard language, detailing analyses of potential synergies, comparative asset values, share-based deal structures, and direct engagement with TORM’s board. The investor also indicates a willingness to communicate with other shareholders and outside parties.

At this stage, TORM is no longer just a cyclical shipping play—it becomes a strategic asset in a broader consolidation narrative. Whether or not a deal materializes, the involvement of an informed, proactive shareholder changes the risk-reward profile.

Applying These Insights in Alpha Buying

Following activist investors is not about blindly copying their moves—it’s about improving your odds.

• Look for undervalued stocks.
• Identify credible activists with meaningful stakes.
• Assess whether there is a realistic path to change.

The market often lags in responding to these signals because they require careful analysis of filings, not just headlines. That’s where the opportunity lies. The initial 13D is rarely the conclusion—it’s the starting point.

MYO offers a governance-driven catalyst. LAKE showcases early-stage activism. CVR demonstrates the outsized impact of concentrated ownership in microcaps. TRMD brings merger potential to a cyclical sector.

None of these situations guarantee success, but each one shifts the probabilities in your favor.

This is the essence of Alpha Buying: seeking out undervalued opportunities where meaningful change is likely. The process may seem tedious, but the long-term rewards can be substantial.