There is a single deli in New Jersey that sells $ 35,000 in the $ 100 million stock market

Hedge fund manager David Einhorn warned of dangers to retail investors he sees in the market, and one of his prime examples was a small New Jersey deli with a market cap of more than $ 100 million.

The Paulsboro, New Jersey-based Your Hometown Deli is the only location for Hometown International, which has dazzling market value despite total sales of $ 35,748 in the past two years combined, according to filings.

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

The hometown, which appears to have started trading in 2019, according to FactSet, has stocks traded over the counter and rarely more than a few hundred shares change hands per day. Often no trades have been recorded on an entire trading day.

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

The hometown did not immediately return a request for comment to the telephone number listed in the company’s filings. A manager was not available to comment on the deli phone number.

According to the company’s latest 10-K filing, the company’s only location was closed from March 23 to September 8 last year due to the coronavirus pandemic. During that time, the company’s stock price rose from $ 3.25 per share to $ 9.25 per share. It last traded at just under $ 14 a share.

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

Hometown reported more than $ 600,000 in expenses 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 stock sales, in 2020.

Einhorn’s attention to Hometown comes as politicians, regulators and high-profile investors have publicly tormented the boom in certain types of stocks in the past year.

As a new wave of private investors hit the market in recent months, specialty acquisition companies have taken off in record time and some stocks, such as GameStop and Discovery, have seen wild swings after being bid 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 skyrocketed in recent months.