I love the opportunities pennies provide, but sometimes the best pennies are the ones you hold onto
eg 2 years ago CAJ, trading at 4c, m/c of $12m, 3 x EBITDA, now 2 years later at 43c and m/c of $200m. MNF trading at 2x EBITDA at under 20c now $1.60....earlier this year MBE at 1.9c, trading at 6x EBITDA, now at 21c...theres heaps of examples out there of quality micro industrials with large re-rates, but they are some I have had large positions in
for me, buying quality micros, that are demonstrating strong earnings and sector momentum, and ones that can legitimately sustain large re-rates based on fundamentals, and importantly can attract institutional support, are the way to go and have provided me with outstanding results
50% in a day is good....1000% in a year is even better
