10 Tiny Stocks That Are On Fire Right Now

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6. Compass Diversified Holdings (NYSE:CODI)

Year-to-Date Performance: 141.40%

Compass Diversified Holdings (NYSE:CODI) is one of the tiny stocks that are on fire right now. On March 30, Compass Diversified entered into a definitive agreement to sell the food service business of its subsidiary, Sterno, to Archer Foodservice Partners for $292.5 million. Archer, a portfolio company of Wynnchurch Capital, will acquire the division, which generated ~$30.3 million in adjusted EBITDA in 2025. Following the divestiture, Compass Diversified will retain Sterno’s home fragrance business, which will continue to operate under the Rimports name.

The primary objective of the sale is to accelerate the company’s deleveraging strategy. Compass Diversified intends to use the net proceeds to repay outstanding debt, which is expected to bring its senior secured net leverage ratio below 1.0x. By reducing this ratio before June 30, the company also expects to avoid fees associated with excess leverage, further strengthening its balance sheet and narrowing the gap between its market price and intrinsic value.

The transaction marks the end of a decade-long partnership between Compass Diversified and Sterno’s food service unit, a brand with a 125-year history in portable heat. Sterno CEO Geoffrey J. Feil will continue to partner with Compass Diversified Holdings (NYSE:CODI) but will shift his focus entirely to leading Rimports in the home fragrance and décor market. The deal is subject to regulatory approvals and is anticipated to close in May.

Compass Diversified Holdings (NYSE:CODI) is a holding company that acquires and manages controlling stakes in middle-market businesses across branded consumer and industrial sectors. Its portfolio includes subsidiaries involved in manufacturing, consumer products, and industrial services.

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Click to continue reading and see the 5 Tiny Stocks That Are On Fire Right Now.

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