Greenfield Discovery
Deep value (with a catalyst) is on the way.
Not investment advice: First, read my full disclaimer here.
Recently I’ve gone off the beaten path, searching for and finding what I perceive to be great investment opportunities that are off the radar of investors. There is both freedom and loneliness going down a trail less followed. From an investor standpoint, it takes knowing what you are looking for, going deep into the details and the conviction to follow through and make it a core part of your investment portfolio.
The result? Three companies I will share over the coming months I believe have asymmetric upside versus downside potential.
While these are three very different companies, they share the following qualities:
1/ Small in size: The largest is sub ~$200M USD market cap.
2/ Growing: Each is at a unique inflection point that is not appreciated by investors.
3/ Inexpensive: Ranging from a 1.5 - 7x future P/E with various degrees of manageable debt.
4/ International: None are in the United States.
5/ Unloved: I can’t find coverage of these companies, anywhere.
Most importantly, two of the three are managed by what I perceive to be excellent management teams. The other? It has three plus distinct paths to be worth its enterprise value.
When I did Sunday’s Idea Brunch, I mentioned: I have little doubt I’m the only investor thinking about 2-3 companies when I wake up in the morning. I try to focus my attention there, even though it takes time to build a position because they’re so tiny.
I’m excited to share these with you. Expect the first profile next week.
As we enter the core of Q1 earnings season, here are opportunities I’ll be keeping a close eye on. I own positions in all of them and several were previous write-ups (linked where this is the case):
