Sup, been a few weeks since last post but alas, my available funds come in slowly.
Currently trying to maintain small positions in attractive looking nano cappers looking to turn a corner or significantly improve on prior numbers.
Currently holding N1H and UBI. Buy in on WSI.
N1H is a simple proposition, looks like they're gonna announce a record $1m~ NPAT on $17m MCAP, they're doing this on significant improvements around revenue and other primary metrics. Buy side thin, sell side downwards pressure which I think will potentially clear in the event of a decent AR, but I don't think we're in for a negative shock given they've pulled the "humble brag" move of announcing a "market update" where they basically just spill their improved unaudited numbers, which I always tend to view as strength. I'm in slightly larger than my min buy currently, because I do believe the numbers will be good and the Top 20 is stacked by the owner of the company, so I suspect a divi could be announced in the short term future due to an obvious and rational amount of self interest.
UBI I tried to avoid the purchase but the 52 week low called my name and I figured as good a time as any. I'm trying to avoid these turn around "blue sky" type deals with heavier preference for straight up profitable businesses (currently targeting a 75/25 split between solid businesses and moon fuel companies, I have eyes on a few things, will talk about as I do more research), but they're calling for CFP EOFY 23 so I'm happy to let it ride given their most recent CR and available cash levels leaves them in a sweet spot for the next 12 months. On top of that, a helpful poster gave me some good insights on John Sharman, the current CEO, who did a turnaround on the crew that did the green whistles, and he has some good quality incentives for higher MCAP hitting, so at current levels, it's 5x return and then also around 8x for his other incentive level. They're starting to generate more revenue and find their own feet, hence the call for CFP. Honestly I've watched these guys for about 5 years now, so it looks like they'll finally get it done, and whilst saying they're undervalued/oversold is a major stretch due to them not actually being profitable, I don't quite understand how they're currently languishing at 28c, however, I am happy to buy at this level and my intention is to ladder up on good news and derisk appropriately.
WSI is "simple", if this is a value trap, I'm going out with my dick stuck in the cookie jar. $18m MCAP with what looks to be a double digit NPAT result. What's more to say?
