Everyone open this post.
So guys( I know here are some girls) I wanted to share few perspectives.
We are here for what?
To find undervalued companies and invest in them?
To earn higher then market returns finding asymetric investments?
To waste each others time?
To boost our ego?
I believe we should concentrate on 2nd option.
We should be the smartest person, or the one who found the most undervalued company.
Also since when undervalued are only mid caps and large caps like ADBE, AMAZON, PYPL, UNH, CRM?
These all are good companies. Most of them undervalued. Safe investments. But is very possible that they will be value traps or dead money.
I see hear a lot of people who have every logical reason to believe stock is undervalued, but still nobody cares and investment is dead money for years.
What about finding small cap companies with real fundamentals, improving margins? Maybe one missed Q, but overall business is doing good?
What about real market research, where multibagger is possible, not just great year with 30% share price increase?
Yartseva in her study found that most multibaggers are with market cap under 500m.
Most multibaggers have improving FCF. All of them have positive equity. Most of them have improving return on Equity. So why are we here talking mostly only about large caps? Do all of us have constraint of capital of few billions to invest?
Anyway my bets now are GAMB, NMG ( New murchinson gold), RIGL, EQX and even OTC gem of ELTP. I am bagholder in ELTP and GAMB, I have great gains in RIGL, NMG and EQX. But I still have conviction on all and I believe they are value bets.
What are your high conviction small cap companies, already with positive FCF?
Come out of closet all the small cap value investors. 🙃