Thanks Adam, I appreciate the information and detailed analysis you provide. A few more companies for me to look at, although I am familiar with SEQ and have also held IFL in the past. My problem with the micro cap end of the market is that a brilliant value investor will probably clean up, but for an also-ran like myself the field is far faster moving than I would like. Going to work each day and only doing this as a hobby has led me to believe I am better off in the mid cap space.
Like many posters in the portfolio section of HC I am in a period of time with limited ideas. After an excellent run on WDS, NHC and WHC (thanks to you and Gaurav Sodhi) I am in the enviable position of nearing 20% cash after selling down these holdings. The mid cap end of the market doesn’t feel compelling enough to invest in heavily at the moment. The ASX has thumbed its nose at materially higher risk-free rates and despite some adjustment downwards in high growth and tech, it seems valuations are largely the same as when interest rates were near 0%. Obviously you’re finding some value in the microcaps.
The challenge for me has become what to do about my high cash allocation as I am normally near 100% invested. My current plan is to adopt an 80/20 portfolio until I feel there are more exciting opportunities in the mid cap sector. Despite this, I have been nibbling on some companies over the last 6 to 8 months. For anyone who is curious, I have bought the following: ASX, BAP, BRG, CAR, REA, REH, SEK, SGR and TAH. Though it should be noted that this was just adding a small amount to existing holdings. Anyway, I am very curious to hear how you and other investors following the portfolio thread are investing their hard earned cash. For me it feels like a time to do nothing since I have no better ideas.
