Certainly agree that many funds are actively looking at the...

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HarryFoodTech

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11/04/24

08:25

Post #: 73288228
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Originally posted by TheAnalyst007: ↑

Noticing many funds commenting on the significant undervaluation of small and especially micro-cap stocks that is currently present. The below slide is from Regal, one of the top performing Aussie funds. The smaller end of town seems to the focus for the bigger end of town at the moment, which is perfect timing for EYE given how strongly it is now performing fundamentally. The difference between now and the last few years is that the fundies are actively looking for stocks like EYE, which they suspect will significantly outperform. Helps as well that it is also in healthcare, which is another segment of the market expected to significantly outperform. So ignoring the fundamentals here, EYE will certainly be popping up on the scanners of fund managers, as it is a solid play for both the small/micro cap and the healthcare rebound.

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Certainly agree that many funds are actively looking at the undervalued small and micro-cap stocks at the moment. It's hard to find potential value in the $A500M+ cap stocks and a small exposure to medical growth companies such as Nova Eye has very little downside. If the stock tanks, they will only lose their investment (say $1 - $2M). But if it takes off and yields a 5- or 10-bagger than the fund manager becomes a hero. At this stage, and at the current market cap, an acquisition by a larger player becomes a very likely chance.

EYE Price at posting: 28.0¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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