AFR article on 27 Dec:
“Andrew Smith, a veteran micro and small-cap stock picker at Perennial Asset Management, says Australia is a particularly rich hunting ground due to a lack of interest in the sector among institutional investors and general worries over surging interest rates.
The fund manager names three ASX-listed micro-caps he’s bullish on, arguing they are market leaders and trade on cheap valuations.
The first is medical software and medication management group MedAdvisor. It is trading around 20¢ on a market cap of $110 million.
“People have missed how this business transformed dramatically in the last 12 months,” he says.
“It’s now a profitable high-margin business, taking market share. It trades on one times enterprise-value-to-sales, versus peers in the US at five times sales.
“We’ve sold two assets in our private fund for five times sales this year for cash. So this five times enterprise-value-to-sales is a real metric, and MedAdvisor is at an 80 per cent valuation discount to this.“
https://www.copyright link/wealth/personal-finance/these-nine-micro-cap-stocks-are-tipped-to-surge-in-2024-20231211-p5eqid
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