Finally bought into the company today. I’ve been patiently...

Finally bought into the company today. I’ve been patiently watching and waiting. At $2.40 it was just too high but I really like this company so in the $1.80s it was time to pull the trigger.

Very solid grow over the past 7-8 years. Over 70% insider owned shares. While this is great for shareholder alignment it does cause an issue with such low volumes. The shares were at $1.83 and I had to buy at $1.89 and the share price went from $1.83 to $1.90 and I didn’t purchase that much at all ($8k). That’s a big jump for such a small amount of purchasing dollars so I wouldn’t want too have much capital in this company.

I have a valuation of $2.12 and with a 6.8% dividend yield for a semi-growth stock I think that’s pretty good. I have IV growing at 19% next year and then 12% the following year and IV of around $2.80 in a couple of years. That’s roughly a 50-60% increase from current share price. Their ROE has been consistently above 40-50% for the past few years which is an excellent result. ROTC has grown as well from in the 40s to 50s.

I do have a couple of queries. The main one being their EQPS hasn’t growth the past 4-5 years so it will be interesting to see how they grow the company in the future. There will most likely have to be an acquisition or 2. I have revenue projected at $83.70m and NPAT at $6.11m so I’m hoping they get close or surpass those numbers. Overall a very good quality company but just don’t want to have a huge amount of my capital allocated to it because of the volumes but at $1.80ish it’s worth purchasing.