This was an awesome read. Would love to have a deeper dive into his actual process. I'm also interested in what the companies looked like in the past just based on financial statements. It seems that some looked good, others bad, but those that looked bad had some sort of change going on within the company
The financials I include al span a couple year before his pitch and after so you can see that the financial tended to not always be great before he invested.
Great read! Thanks for sharing this work freely publicly!
I have 2 points about Azeus I wanted to mention
- ttm p/e is ca. 25 and not > 100
- 1 Billion HKD = 172 SGD contract over the next 5-10 years with 75% of that being high margin SaaS-revenue as catalyst. (current ttm earnings = 10 mill SGD)
This is a high-quality blog. I liked Hammond Manufacturing. It’s a stock with similarities to Card Factory: it's cheap, with no growth expectations factored into the price. Growth isn’t necessary to justify the stock’s value (so if it happens, it would be a bonus). Additionally, almost no one is following it, making it an interesting opportunity
However, it is important to note that the results should be viewed with some degree of caution due to the short time period and relatively poor performance in 2023. Additionally, it should be taken into account that some of the companies included in the analysis are small. As documented in research studies, there is a strong small-cap premium for the smallest 5-10% of the stock market, which may impact the returns. According to these research studies, the returns for these (smallest) stocks range from 20% to 30% per annum.
Related to the short time period of the reported investment returns of about 6 years: It is possible that these returns were mainly influenced by chance. A performance track record of > 20 years would be much better.
I think al of these are valid points. I do expect Daniel to keep out performing but not 50% per annum going forward. I still think there is a lot to learn for every smallcap investor by looking at Daniel's pitches.
This was an awesome read. Would love to have a deeper dive into his actual process. I'm also interested in what the companies looked like in the past just based on financial statements. It seems that some looked good, others bad, but those that looked bad had some sort of change going on within the company
The financials I include al span a couple year before his pitch and after so you can see that the financial tended to not always be great before he invested.
Great read! Thanks for sharing this work freely publicly!
I have 2 points about Azeus I wanted to mention
- ttm p/e is ca. 25 and not > 100
- 1 Billion HKD = 172 SGD contract over the next 5-10 years with 75% of that being high margin SaaS-revenue as catalyst. (current ttm earnings = 10 mill SGD)
This is a high-quality blog. I liked Hammond Manufacturing. It’s a stock with similarities to Card Factory: it's cheap, with no growth expectations factored into the price. Growth isn’t necessary to justify the stock’s value (so if it happens, it would be a bonus). Additionally, almost no one is following it, making it an interesting opportunity
However, it is important to note that the results should be viewed with some degree of caution due to the short time period and relatively poor performance in 2023. Additionally, it should be taken into account that some of the companies included in the analysis are small. As documented in research studies, there is a strong small-cap premium for the smallest 5-10% of the stock market, which may impact the returns. According to these research studies, the returns for these (smallest) stocks range from 20% to 30% per annum.
Related to the short time period of the reported investment returns of about 6 years: It is possible that these returns were mainly influenced by chance. A performance track record of > 20 years would be much better.
I think al of these are valid points. I do expect Daniel to keep out performing but not 50% per annum going forward. I still think there is a lot to learn for every smallcap investor by looking at Daniel's pitches.