AFR article on 27 Dec:“Andrew Smith, a veteran micro and...

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