The Mikro Kap

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Hello,

I have some big news to share.

A few months ago, I left my equity analyst position to dedicate myself fully to The Mikro Kap.

Given the opportunities I had at the company, this wasn't an easy decision to make. But I believe it was the right one. After all, nothing brings me more joy than discovering new interesting micro-cap setups.

Over the past two years, I’ve shared insights and ideas for free, and I hope they’ve been valuable. However, starting now, all new content will be behind a paywall.

To the ~4,000 readers who’ve taken the time to read and engage with my work, thank you! And an even bigger thank you to those who choose to support it moving forward.

Here’s my offer to you.

You pay:

• $30 per month or $240 per year ($20/month equivalent)

I give you:

• 12-15 in-depth micro-cap analyses per year

• Ad hoc management interviews and scuttlebutt reports

• Real-time updates on my buy/sell decisions

• Periodic portfolio reviews and insights

• Timely coverage of all important news and developments for covered companies

The reason I’m giving more than a 30% lower price to annual subscribers is because I value loyalty and would prefer readers who are long-term thinkers, and who evaluate my work based on annual output.

Let’s further break down what you can expect from The Mikro Kap:

1. / 12-15 unique micro-cap analysis per year

The Mikro Kap is a quality-first publication, not a blog for investors seeking weekly content or entertainment. While I could publish weekly, I believe it would compromise quality. I’d rather spend more time turning over rocks and making sure the ideas I present really offer the best risk reward I can find, than publish more regularly about only-average opportunities.

So with full-time devotion, 12-15 ideas every year feels like the sweet spot. There may be periods, like the past three months, where I find multiple ideas worth buying (four to be precise), but there may also be two-month stretches with barely one attractive opportunity. The market, luck, and focus will influence the tempo and timing of my posts, but you can count on 12-15 in-depth analyses delivered to your mailbox each year.

By now, you’re well aware of the types of situations I prefer, so I won’t waste your time repeating them.
Okay – maybe just one sentence:

“I like to fish in markets where people cannot fish, will not fish, or aren’t fishing, even though the fish are fat.”

Here are my last three buy decisions to give you an idea:

The Holy Trinity of Banking

Chaos Is A Ladder

Give Credit Where Credit Is Due

There’s also a backlog of many micro-cap ideas that will remain free to read.

Lastly, as any competent investor understands, buy decisions are few and far between. In a typical year, truly great opportunities can be counted on one hand—maybe two if it’s a good year, and you’re both lucky and persistent.

Which is exactly why I recently started the Mikro Kap Watchlist series. In this “series,” I dive deeper into unique opportunities from my watchlist that, in my opinion, are worth monitoring closely. So this way, you can act decisively when the moment comes, rather than spending weeks on initial research. These are the kinds of stocks that would likely be part of my portfolio if I were older, more diversified, or both.

So you can also expect coverage of unique ideas that I don’t own but still find appealing in terms of risk-reward. For example, in October, I covered two interesting situations in the UK’s luxury interiors sector.

Cannibal ante portas

Profit by Design

2. / Ad hoc management interviews and scuttlebutt reports

I can’t guarantee the pace of these reports, which is why I used ad hoc, but in a given year, you can expect me to share scuttlebutt notes or interview management teams that are inaccessible to most investors—those running companies often too small to hold earnings calls with analysts.

Here are a few examples of management interviews I’ve conducted in the past:

• First-ever video with $LDB.MI founder-CEO (written format)

Unique

• Interview with $DGL.AX CEO and CFO (video format)

Inside Specialty Chemicals

• Call with $MSV.AX CEO and CFO (paraphrased after the conversation)

This is not a drill

From time to time, before or after taking a large position, I visit companies to conduct scuttlebutt work and speak with key suppliers or customers. I did this once this year and reported on my visit to Lindbergh’s headquarters and warehousing facilities in April:

• $LDB.MI scuttlebutt report

Serial HVACquirer

3. / Real time updates on my buy/sell decisions

As in the past two years, all my buy and sell decisions will be shared immediately in Substack’s subscribers chat. Whether I win or lose, I’ll report on it. So, if you decide to subscribe and want to follow what I’m doing with my money, you can do so here: [link].

last big portfolio change

4. / Periodic portfolio reviews and insights

Portfolio reviews are meant to share my learnings, summarize key developments, and outline my expectations for the future of my positions. For example, here’s what I learned from 2023 and how I approached 2024.

Self-reflections

In medias res

5. / Timely updates on critical news and developments for covered companies

Lastly, you can expect timely coverage of all ideas I discuss, whether they are stocks I own or Mikro Kap Watchlist contenders.

After thoroughly researching a company, I’m confident I understand the business better than 90% of other investors. I also have email alerts set up for each company in my portfolio and quick access to the management of most, so you can expect regular updates on my maintenance due diligence in the subscriber chat.

important news on my largest position

This is it. I hope I've given you enough information to decide if this subscription is right for you.

And if you’re still undecided, reading or listening to my investing approach might help you make a decision. I’ll link it here:

• read

My life in Value

• listen

The Mikro Cap: Global Micro Cap Investing

PS
As a bonus, I’ve managed to convince Tikr’s founder to kick off their Christmas sale a few days early this year, and exclusively for The Mikro Kap paid subscribers. This early offer runs from today until December 14th and gives you 20% off all Tikr annual plans. If you subscribe before then, you’ll find the code in subscribers chat.

Thank you once again for your support, for reading my articles. And for the occasional wonderful comments, such as this one, that inspire me to keep doing this work!

screenshot

Feel free to share this post with anyone who might find it useful.

David

The Mikro Kap uses information sources believed to be reliable, but their accuracy cannot be guaranteed. The information contained in this publication is not intended to constitute individual investment advice and is not designed to meet your personal financial situation. The opinions expressed in such publications are those of the publisher and are subject to change without notice. Consult your financial adviser to understand whether any investment is suitable for your specific needs.

I may, from time to time, have positions in the securities covered in the articles on this website and reserve the right to buy or sell any securities mentioned in this article at any time, without prior notice.

This is not a recommendation to buy or sell stocks. Do your own due diligence.