A new player riding the infrastructure boom

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

Assessing the investment case for Imdex

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

Imdex: What the market missed

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

Two tech stocks in elite sports

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

Mining services – clear signs of a recovery

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

Earnings momentum lifts at Imdex

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

Cash is King

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

A growth company ... on value metrics

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

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 -