SCHEDULE: Galloway Capital Takes 6.45% Stake in Chicago Rivet

Activist investor Galloway Capital Partners discloses a 6.45% stake in Chicago Rivet & Machine Co., citing undervaluation and urging strategic changes.

Summary

• Galloway Capital Partners, LLC, Galloway Capital, LP, and Bruce Galloway (collectively, the "Reporting Persons") have acquired an aggregate of 62,300 shares of Common Stock in Chicago Rivet & Machine Co.
• This ownership represents approximately 6.45% of the Issuer's outstanding shares, based on 966,132 shares outstanding as of November 7, 2025.
• The shares were acquired for investment purposes, with open market purchases occurring from June 2024 through December 2025 at an approximate aggregate purchase price of $11.66 per share.
• The Reporting Persons believe Chicago Rivet & Machine Co. is materially undervalued relative to its intrinsic earnings power and strategic position.
• They estimate the company has the potential to generate $4 to $5 per share in sustainable earnings.
• Galloway Capital intends to engage with the Board and management to discuss the company's performance, operations, management, governance (including potential Board changes), capital allocation policies, and strategy.
• The Reporting Persons advocate for a more proactive and professional investor relations strategy and the engagement of an experienced Wall Street advisor to better communicate the company's value to institutional investors.

Sentiment

Score: 8

Explanation: The sentiment is highly positive regarding the company's intrinsic value and future earnings potential, but critical of the current market perception and management's investor relations strategy. The investor sees significant untapped value.

Positives

• The company is believed to be materially undervalued, suggesting significant upside potential for shareholders.
• Chicago Rivet & Machine Co. is uniquely positioned to benefit from protectionist policies, enhancing its competitive standing as a domestic manufacturer.
• There is a potential for the company to generate strong sustainable earnings of $4 to $5 per share, significantly higher than current market perception.

Negatives

• The public markets do not adequately understand the company's value proposition, earnings power, or strategic advantages.
• The company's share price is trading at a significant discount to its intrinsic value.

Risks

• The primary risk identified by the Reporting Persons is the market's failure to adequately recognize the company's intrinsic value, earnings power, and strategic advantages, leading to an undervalued stock price.

Future Outlook

The Reporting Persons intend to continuously review their investment in Chicago Rivet & Machine Co. and may acquire additional securities or sell existing holdings based on various factors including the Issuer's performance, market conditions, and strategic alternatives. They plan to engage with the Board and management to propose initiatives aimed at unlocking shareholder value, potentially including changes to governance, capital allocation, and strategy.

Management Comments

• "Chicago Rivet is materially undervalued relative to its intrinsic earnings power and strategic position."
• "The Company is uniquely positioned to benefit from the Trump Administrations tariff and protectionist policies, which materially enhance the competitive positioning of domestic manufacturers."
• "Chicago Rivet has the potential to generate $4 to $5 per share in sustainable earnings, far in excess of what is currently reflected in the stock price."
• "The public markets do not adequately understand the Company's value proposition, earnings power, or strategic advantages."
• "The Company should immediately pursue a more proactive and professional investor relations strategy with more detailed press releases, as well as engaging an experienced Wall Street advisor, to ensure Chicago Rivet is properly positioned and communicated to the institutional investment community."

Industry Context

The filing highlights Chicago Rivet & Machine Co.'s strategic position within domestic manufacturing, asserting that the company is uniquely poised to benefit from protectionist trade policies, specifically referencing the 'Trump Administration's tariff and protectionist policies.' This suggests a belief that the company's competitive advantage is enhanced by a political and economic environment favoring domestic production.

Comparison to Industry Standards

• The filing asserts Chicago Rivet & Machine Co. has a unique strategic position and competitive advantage within domestic manufacturing, particularly benefiting from protectionist policies.
• It does not provide specific comparisons to named industry peers, projects, or global benchmarks to support this assertion.

Stakeholder Impact

• Shareholders: Potential for increased shareholder value if the company addresses the perceived undervaluation and implements suggested strategic changes, including improved investor relations.
• Management and Board: Will face engagement and potential pressure from a significant activist shareholder regarding company performance, governance, and strategy.

Next Steps

• Galloway Capital Partners intends to review its investment in the Issuer on a continuing basis.
• Reporting Persons may acquire additional securities or sell existing holdings.
• Reporting Persons may consider, explore, and/or develop plans and/or make proposals regarding the Issuer's performance, operations, management, governance (including potential changes to the Board), conflicted party transactions, capital allocation policies, and strategy.
• Reporting Persons intend to engage the Board and management to discuss these matters.
• The company is urged to pursue a more proactive and professional investor relations strategy.
• The company is urged to engage an experienced Wall Street advisor.

Key Dates

Recommendation

Based on the filing, a seasoned investor would likely view Chicago Rivet & Machine Co. as a 'strong buy.' The activist investor, Galloway Capital, has identified the company as materially undervalued with significant sustainable earnings potential ($4-$5 per share) and a strong competitive position benefiting from protectionist policies. Their substantial stake (6.45%) and stated intent to engage management to unlock this value suggest a catalyst for future share price appreciation. The call for improved investor relations and strategic advice indicates a clear path to addressing the market's current misunderstanding of the company's intrinsic worth.

Keywords

Chicago Rivet & Machine Co., Galloway Capital Partners, Schedule 13D, Activist Investor, Shareholder Value, Undervaluation, Corporate Governance, Investment Strategy, Common Stock, Domestic Manufacturing