Andrew Smith

Andrew
Smith

Head of Smaller Companies and Microcaps
Perennial Value Management

Andrew commenced with Perennial Value in July 2008. Prior to joining Perennial Value, Andrew was Head of Research at Linwar Securities, a boutique broker specialising in smaller company research. Andrew joined Linwar in 2003 and during this time he gained a deep understanding of stocks across the small cap spectrum. Andrew commenced his career at Tyndall in their graduate program, where he gained experience across a number of functions including accounting, product development and stock analysis. Andrew is responsible for managing the Small and Microcap portfolios at Perennial Value. Andrew attained First Class Honours in Finance while achieving his Bachelor of Commerce degree at Sydney University.

Expertise

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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

ASX:IMD IMDEX

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

ASX:IMD What the market missed

A sector flying under the radar

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

healthcare lithium china baby food ASX:LHC ASX:IDX

Do opportunities exist in an expensive Small Cap market?

Andrew Smith

Recent broker reports have highlighted that the Australian Small Cap market is beginning to look stretched from a valuation perspective. Show More

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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

ASX:CAT ASX:PWH

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

How to invest in microcaps alongside the Perennial Value team

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

microcap Sponsored Content SMALLCAP

Two offshore results that matter for Aussie Small Caps

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

ASX:ANG ASX:RUL

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

ASX:IMD

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

ASX:PWH

Further signs of life in Mining Services

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

mining services ASX:IMD February 2017 Reporting Season

Navigating the Small Cap minefield

Andrew Smith

Many Fund Managers are guilty of spending a disproportionate amount of time talking about the stocks they have successfully invested in rather than the poorly performing stocks they successfully avoided due to their investment process. Show More

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Signs of life in Mining Services

Andrew Smith

Runge Pincock Minarco provides software and advisory work for mining companies, and provided a strong earnings update this week. This will see the company produce $3.1m EBITDA for the 1H17, despite higher R&D spend. Given software license sales are usually skewed to the 4th quarter, they are well placed to... Show More

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 -