One of the key attributes we look for in a management team is clear evidence that they have “skin in the game”. All the evidence suggests that this is a powerful mechanism to ensure shareholders benefit from the best that management has to offer. In this wire, we discuss the... Show More

The market moves in cycles which are often extreme. We are currently experiencing a market which appears almost exclusively focused upon momentum rather than value, quality or traditional fundamentals. Should investors give up on fundamental value investing strategies and follow the markets’ momentum focused lead? Or is it time to... Show More

Meeting with management from small cap companies is an important part of any professional investors process. Here we share our thoughts following recent meetings with the teams from 5 microcap companies on our radar, including Pioneer Credit, Gale Pacific, Joyce Corp, Blackwall and Zenitas Healthcare. Show More

At a time when so many investors are focused on technology and growth, it is understandable why the market is less interested in a seemingly old-economy company like Joyce Corporation Limited (ASX:JYC). Joyce’s origins go back over 130 years, and at one point was Australia’s largest foam and furniture manufacturer,... Show More

In our search for under-valued high quality ASX listed smaller companies we occasionally come across an opportunity which truly stands out from the crowd. In this article we discuss a company which is currently trading at less than 10 times FY18 earnings despite expected earnings growth of 15-20% p.a. over... Show More

We believe the true test of being on the right investment path is whether you can sleep well at night. If you find yourself awake in the middle of the night mulling over your investment portfolio’s downside risk you probably need to make some changes. In this article we discuss... Show More

We have noticed that investors often gravitate towards exciting but unproven business models which promise revolutionary change. In contrast, investors often tend to overlook more simple business models which are generating cash flows here and now. We view this behavioral bias as a key driver behind the opportunity set we... Show More

Gaining access to the best IPOs and Capital Raisings appears to remain the preserve of institutional and high net worth individuals at present. Whilst this plays to our advantage in DMX Asset Management we would like to see the market playing field level over time to allow fairer access to... Show More

Livewire reached out to us on the topic of small caps, specifically the outlook, what our strategic approach is in current market conditions, and what opportunities we are seeing today. Show More

Finding high quality businesses to invest in means sifting through many, many companies which don’t make the grade. The higher the grade required, the more sustainable and repeat-able the process in our opinion. Our shopping list for high quality stocks is long and hard to achieve: i) Profitable and generating... Show More

Expectations for the upcoming reporting season are at the highest they have been in 3 years. In our experience, heightened expectations often lead to disappointments. This is particularly the case for industrials with global operations which in the last 6 months have had to contend with the impact of Brexit... Show More

The ASX Small Ords has out-performed the All Ords by 10% over the past 2 years. Will this continue longer term? We think so based upon the 5 underlying drivers of this recent out-performance which we believe will remain in place looking forward. The increasing scarcity of under-valued assets across... Show More

We have noticed a number of recurring comments in recent months which all add up to the same underlying theme: extreme investor caution. This is consistent with the data presented in the chart below which shows that global fund management cash levels are currently at multi-year highs. This highlights just... Show More

A sobering fact: 81% of ASX listed companies with a market cap below $100m are currently loss-making. And another: 90% of the same companies don’t pay a dividend. These are decisively low hit rates for investors focused upon predictable shareholder returns in stable business models. We believe knowing and understanding... Show More

Investing in smaller companies has traditionally been a core strategy to achieving significant long term wealth generation for high net worth individuals, family offices, entrepreneurs, etc. And for good reason - we believe there are many compelling reasons to include smaller companies in all portfolios. In this article we investigate... Show More

In our experience, there is no one magic formula which guarantees out-performance in every scenario. However, over many years of working as a professional investor, you notice clear similarities and trends which generally hold true. One of these themes is that the share price performance of family companies often seem... Show More

Intrinsic value is a core value investing concept which is simple and yet often misunderstood. At DMX Asset Management we always compare a stock’s intrinsic value with its current market value when making investment decisions. Our objective is to only invest when intrinsic value is far in excess of the... Show More

The Australian smaller companies universe is home to a number of companies which are building global leadership positions in their respective niche markets, and yet somewhat surprisingly remain largely unrecognised in the local investment community. Identifying these types of businesses is both our passion and our bread and butter. We... Show More

Value investing requires discipline and an ability to see through the noise so as to buy when others are fearful. With a good degree of self-awareness and an open mind we strongly believe it remains a superior investment strategy, and one which can lead to substantial outperformance. This article addresses... Show More

Smaller companies generally trade with lower liquidity than larger companies reflecting their lower market caps, smaller market following, and large founder stakes. Contrary to popular opinion, we view lower liquidity as core to the smaller company investment opportunity since smaller companies only trade at low liquidity levels when they are... Show More