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No. of Recommendations: 1
Hi Anurag!

I agree with you about TST -- in fact, like you, I concluded that Jim Cramer would not risk his brand on things like bad reporting, etc., and bought when things looked black. (I think Michael Olsen may have spotted TST a while ago as a Tiny Gem.)

In fact, TST is just one member of a basket of small cap dividend payers that I like -- other components include ARKR, EEI, HNNA, FHCO, RSGUF and RMCF.

I especially like HNNA - I think they have maybe about four non-institutional shareholders! Last year they sent me a hand-signed holiday card and they send personal notes about things like early dividend payments, etc.

All of these companies seem to manage cash very well, allowing them to pay a solid and well-covered dividend. You could argue that it would be better to reinvest in growing the business, but there are plenty of small caps that do that -- it is nice to have a basket of shareholder-friendly, cash-conscious businesses with strong growth possibilities due to their small size.

ARKR may be the weakest of the group, but it pays an excellent dividend and showed responsible dividend behavior through the GFC. It also fits Stillwater's venerable founder model.

I like Jim's MUE portfolio and have invested in RIG, DF, WDC and TXT based on his analysis. I am thinking of selling DF, however, since it seems a little overpriced given Jim's latest discussion of it.

Anurag, what do you think of the Indian portal company SIFY? A person I like and admire very much acquired a controlling interest in it a couple of years ago (he bought Satyam’s stake), and although I have no special knowledge about SIFY at all, I have very high confidence in his abilities. But I wonder what you might think of it? I know in general that segment of the Indian market seems very discredited these days.

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