There is a single deli in New Jersey that makes sales of $ 35,000, valued at $ 100 million in the stock market

Hedge fund manager David Einhorn warned of the dangers facing retail investors in the market and one of his main examples was a small delicatessen in New Jersey with a market capitalization of over $ 100 million.

Your Hometown Deli, based in Paulsboro, New Jersey, is the only location for Hometown International that has an attractive market value, despite a total of $ 35,748 in sales over the past two years combined, according to securities records.

“Someone pointed us to Hometown International (HWIN), which owns a single deli in rural New Jersey … HWIN reached a market level of $ 113 million on February 8th. The largest shareholder is also the CEO / CFO / Treasurer and a principal who happens to be the high school wrestling coach by the door. The pastrami must be amazing, “Einhorn said in a letter to customers published on Thursday.

The hometown, which seems to have started trading in 2019, according to FactSet, has shares that are traded over the counter and rarely more than a few hundred shares change hands a day. Often, there are no transactions recorded in a full day of trading.

However, the company’s market capacity is just over $ 100 million, according to FactSet.

The hometown did not immediately return a request for comments on the phone number listed in the company’s securities records. A manager was not available to comment on the store’s phone number.

According to the last 10-K filed by the company, the company’s sole headquarters was closed between March 23 and September 8 last year due to the coronavirus pandemic. During that time, the company’s stock price rose to $ 9.25 per share from $ 3.25 per share. It was last traded at just under $ 14 per share.

The company sold 2.5 million shares last year and has about 60 shareholders in total, according to a file.

The hometown reported spending of more than $ 600,000 last year, up from about $ 154,000 in 2019. The company also reported a net cash gain of $ 2.2 million from financing activities such as be the sale of shares in 2020.

Einhorn’s highlighting of his hometown comes as politicians, regulators and investors have publicly worried about the boom in certain types of stocks over the past year.

As a new wave of retail investors has joined the market in recent months, special-purpose procurement companies have launched at a record pace, and some stocks, such as GameStop and Discovery, have seen wild fluctuations after which were auctioned by traders on Reddit or hedge funds.

The over-the-counter stock market, often referred to as pink sheets and penny stocks, has historically been a risky place for investors. Shares of penny stocks have also risen in recent months.