Andrew Smith

Revasum manufactures a portfolio of precision solutions that are integral to the manufacturing of semiconductor wafers. The company’s portfolio includes – polishers, grinders and chemical-mechanical planarization (“CMP”) systems for both Silicon and Silicon Carbide (SiC) wafers. Show More

Andrew Smith

This time last year, we nominated a high conviction small cap for Livewire in an out-of-favour sector, healthcare. One of our preferred exposures was Integrated Diagnostics (ASX: IDX). Pleasingly, developments since have either delivered on our expectations or exceeded them resulting in the share price being up 41% at the... Show More

Andrew Smith

We first heard of Acrow (ACF) many years ago before it was listed, when researching listed competitor GCS. This was before the east coast infrastructure boom, and thus the business was struggling and capital deprived under private equity ownership. Despite that, there were several corporates interested in acquiring the assets... Show More

Andrew Smith

Navigator Global Investments delivered a quality FY18 result with EBITDA +15% and dividends +14% both in US$. This capped off a successful year, which saw the share price almost double. Show More

Buy Hold Sell
Buy Hold Sell

They say big things come in small packages, but nowhere is that truer than in small stocks. These small companies offer the possibility of big returns, but that often comes at the price of higher volatility. In this week’s episode of Buy Hold Sell, David Allingham from Eley Griffiths Group... Show More

Buy Hold Sell
Buy Hold Sell

When we last spoke to Andrew Smith from Perennial Value Management and David Allingham from Eley Griffiths Group, small caps were coming off the back of a period of underperformance. It’s a different story now, with the Small Ordinaries rallying hard in the back half of 2017. But are attractive... Show More

Buy Hold Sell
Buy Hold Sell

12 months ago, David Allingham from Eley Griffiths Group and Andrew Smith from Perennial Value Management went head-to-head with their views on 5 microcap stocks. Since then, the smaller end of the market has been buoyant, with the small ords up ~15%, and both managers exceeding this mark by handsome... Show More

Andrew Smith

Imdex (ASX:IMD) is a leading global mining equipment, technology and services company. Their solutions improve the process of identifying and extracting what is below the earth’s surface for drilling contractors and resource companies. Perennial holds Index shares in both its Smaller Companies Trust and Microcaps Opportunities Trust, in this video... Show More

Andrew Smith

Starting with quality of the earnings, the data was encouraging. Revenue growth continues to be strong reflecting the recovery in the mining cycle. More encouraging was the expansion in EBITDA margins (from 16.5% to 19.2%) and this was despite the disclosure of an additional $5 million invested in technology development... Show More

Andrew Smith

After several years of underperformance investors were initially attracted to the better valuations which were available in Small Caps. However more recently there has been a noticeable improvement in risk appetite. This has added fuel to the rally with investors taking comfort from the almost synchronised growth that is occurring... Show More

Andrew Smith

The size and diversity of the Microcaps universe provides for good investing opportunities. This is an area of the market that has been under researched, we have managed to find two tech stocks that are involved in elite sports (PWR Holdings and Catapult). Show More

Andrew Smith

In sharp contrast to the ASX listed space, the mining industry has been providing anecdotal feedback of an upturn since August. A break in the fundamentals in the share price provides a good investment opportunity with a good example being RPM Global. Show More

Andrew Smith

Navigating the almost 2000 stocks in the microcap universe can be daunting for investors, particularly as broker coverage is so thin. But this is precisely what attracts us. We use our large research team and disciplined process to uncover great value stocks whose growth prospects are being ignored by the... Show More

Andrew Smith

Earnings updates from domestic companies were limited during April and continue to be so in May given the six monthly earnings cycle. However, investors can still draw on the quarterly reports from offshore companies to pick up trends which may influence stocks closer to home. Show More

Andrew Smith

Today’s third quarter update highlights a pick-up in momentum with third quarter revenue growth of 39% compared to second quarter growth of 13.4% and first quarter growth of 6.0%. Indicators from March were also strong with a 44% lift in tools on hire foreshadowing strong revenue growth in the coming... Show More

Andrew Smith

During reporting season we were faced with many presentations that had flattering adjusted EBITDA and normalized NPAT figures – but these two numbers do not reveal the whole story to investors. To assess a company’s true health we make a beeline for their cashflow statement – a much more difficult... Show More

Andrew Smith

PWR Holdings provides engineered cooling solutions to high-end auto and industrial customers and has become a world leader in these markets. In the 1HFY17 result, they delivered considerable organic growth but this was masked by the strong move of the AUD against the GBP as well as a ramp up... Show More

Andrew Smith

Imdex delivered a 24% lift in EBITDA on 10% revenue growth for the 1H17. The most impressive performance came from the REFLEX Instruments division with 20% growth in tools on hire. The 2H17 is also off to a strong start with 26% growth in January 2017 – a clear sign... Show More

Thanks Clinton, see detailed response from our analyst Ryan Sohn "Revasum has an intellectual property portfolio built up through over 30years of technology development. This by its nature is difficult to replicate and presents significant barriers for new players. The marker is very consolidated with 0-2 competitors in each of Revasums product segments. Importantly these players are extremely large and are focused on larger segments of the market thereby creating a vacuum for Revasum to exploit. Revasum revenue model is dedicated to the construction of new fabs and production facilities. As such, there is a degree of lumpiness to the equipment cash flows, however this needs to be considered with regard to the overall outlook for semiconductors with numerous powerful growth drivers that are only beginning to play out and will likely to support new equipment sales over the long term (Electric Vehicles, 5G and Internet of Things). Revasum also provides consumables and services which by its nature act as a recurring revenue stream. Overlaying this with the low valuation in comparison to its peers and the broader market Revasum provides an attractive investment proposition. "

On Revasum: Riding the tailwind of EV, IOT & 5G -

Thanks James. Although we use many valuation techniques and qualitative assessments for stocks, direct selling (or buying) has always been a strong signal in our process

On Navigating the Small Cap minefield -