Any spiffy pops today?, page-10

In the 6-12 months before I first bought it, I had been starting to invest in smaller market cap companies on the ASX. Some of these were recommended by motley fool and I was understanding that risk could be mitigated by more diversification and buying smaller parcels over time, adding to winners. Dicker was not recommended by that service, but I was getting more comfortable with smaller cap companies. I also started to rate all companies with a 'risk assessment'. Dicker seemed to have lower risk compared to many of the others so that was a key factor. Also the COO had been buying which gave me some confidence.

Some of the things I liked were: profitable, positive cashflow, had diversified customers, double digit revenue growth, transparent reporting, good ROE, PE <30, market cap > $250M, high ownership by key insiders, owner founder and management team in place for a long period. I also liked that it was in an industry that had positive tailwinds.

To put all this in perspective, even after buying multiple parcels since, it accounts for about 3.2% of my investments, and now making up about 4.5% of the portfolio. Its my 6th largest position now, from about 50 companies.