News & Insights #31
A new Hidden gem *** Investor events and a spin-off for Hong Kong stocks *** and more
Links, references & more
» Company write-ups
I just highlighted another Hidden gem, which seems to be entering the discovery phase. Last week, several institutional investors participated in buying a block of 2m shares.
Hidden gem #10; U.S. SaaS microcap
The group of high-quality businesses led by great executives is a minority amongst microcaps. This particular SaaS/AI company saves its customers a ton of time, resulting in sticky customer relationships, ie very strong (c100%) net customer retention rates. It has now turned solidly profitable and is well on its way to start generating very strong free cash flow (FCF) and returns on invested capital (ROIC).
There are quite the number of potentially interesting stocks out there that are keeping me busy. The most likely next candidate is a microcap high-dividend Hong Kong stock with a business mix that has been shifting towards high-margin data activities.
The US dollar strength since Trump’s election seems to have made the Latin largecap staples stock a bit less opportune in the short-term.