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

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

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

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 -