Hello,
Welcome to another Mikro Kap research report. After diving into an Israeli medtech company, an Italian transmission systems firm, and a Japanese financial in the last three write-ups, it’s time to switch gears and look at something that doesn’t require heavy qualitative digging or deep business analysis to size up the risk-reward.
This one’s a special situation micro-cap listed on the barren lands of the ASX. The chart looks terrible, the financials even worse—but that’s mostly due to a loss-making segment that was sold off earlier this year. Strip that out, and what you’re left with is a cheap, cash-generating business hiding in plain sight.
Post-sale, the remainco trades at 9× P/E, 4× EV/FCF, and 0.7× P/B on trailing numbers. And that’s probably the floor—there’s still more cash that could come in over the next few quarters if a few things fall into place, plus additional upside tied to the equity stake in the acquirer.
So let’s dig into this illiquid stock—one that wealthy investors can’t really buy, hasn’t been mentioned on Fintwit, hasn’t been covered on Substack, and involves a transaction that takes some digging before you understand what it actually means for the upside.