There’s a single New Jersey deli doing $35,000 in sales valued at $100 million in the stock market

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

The Paulsboro, New Jersey-based Your Hometown Deli is the only location for Hometown International, which has an eye-popping market value despite totaling $35,748 in sales in the last two years mingled, according to securities filings.

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

Hometown, which appears to have begun trading in 2019, according to FactSet, has allowances that trade over the counter and rarely has more than a few hundred shares change hands per day. Often, there are no trades logged in an complete trading day.

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

Hometown did not immediately return a solicitation seeking comment made to the phone number listed in the company’s securities filings. A manager was not available to comment at the deli’s phone edition.

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

The company sold 2.5 million dividends last year and has about 60 total shareholders, according a filing.

Hometown reported more than $600,000 in expenses final year, up from about $154,000 in 2019. The company also reported a net cash gain of $2.2 million from asset activities, such as selling stock, in 2020.

Einhorn’s highlighting of Hometown comes as politicians, regulators and high-profile investors bear publicly fretted about the boom in certain types of stocks over the past year.

As a new wave of retail investors joined the market in just out months, special purpose acquisition companies have launched at a record pace and some stocks, like GameStop and Unearthing, have seen wild swings after being bid up by traders on Reddit or hedge funds.

The over-the-counter stock buy, often referred to as pink sheets and penny stocks, have historically been a risky place for investors. Divide ups of penny stocks have also soared in recent months.