Profitable Micro-caps (Revenue greater than $10m)

[percy]

Thanks Steve.Plenty there to keep me out of trouble,or is it there is plenty there to get me into trouble!!!!!. I held TAG for a number of years,always a profit around the corner.!! I sold out at about 20cents then they floated medical software company Iso ??? and Tag shares went to about $1.20 six months after I sold.I note Lizard posted on the software company,within the last year.They ran into problems in UK and the shares fell out of bed.Don't think I would buy a Peter Wise company again.His cousin Gary Wisse was on the board.

[buns]

steve can you add on a filter showing ROE and net debt?

[steve fleming]

steve can you add on a filter showing ROE and net debt?

that should be possible....its easier if i email you it

[Lizard]

Another one to add to the list (missed the $20m cut off originally, but now sneaks in)

MNY – Money3 Corporation Limited


m/c = $19m (42.7m @ 44c)
Cash = $3m
EV = $16m

Today confirmed FY11 NPBT of $3.5m, so NPAT of $2.5m ish

Div Yield = 9%
EV/EBITDA = 4.5

Per Bell Potter Research Report:

“MNY is a profitable and ungeared participant in the micro-lending sector that should benefit from recent regulatory reform. With significant demand for microlending and barriers-to-entry for mainstream financial institutions, MNY is well placed to grow both its branch network and its product offering.

MNY is priced at a significant discount to its asset backing at 0.7x NTA or 0.5x book and remains firmly in single-digit P/E territory on 7x FY11f EPS.

The single-digit P/E comes with an attractive dividend yield of 9%. MNY is both small and illiquid and for that reason will be discounted relative to peers
but for investors comfortable with that profile, the risk is compensated by the opportunity to grow by a combination of branch roll-out, expanded product offering and acquisitions.

The company’s management team have successfully maintained profitability both before and after its October 2006 IPO while steadily growing both revenue and loan volumes.”

Had another look at this one the other day - now at 38cps. Comes out well on lots of metrics, although I can't quite bring myself to own shares in a loan shark. But my valuation was more than twice current s.p., assuming they're being straight up on provisioning for bad debts.

[Lizard]

ADG Global Supply – supporting the mining industry

m/c - $17m

provider of industrial products, supply chain and global procurement services to exploration, drilling, mining, oil and gas clients located in remote places. Approx half of revenues come from African based resources and energy clients.

Recently reported FY11 revenues of $52m, a 45% increase from FY10. Unaudited FY11 EBIT of $1.3m and estimated NPAT of $750k.

There is a growing demand for ADQ’s integrated product and service offering in the resource and energy markets, and a considerable pipeline of opportunities. Some major deals and contract wins have been announced in recent months. ADQ is expecting further uplift in revenue with an improved EBIT margin for FY12. I understand one broker has a FY12 NPAT estimate of $2.5m.

What i also really like about ADQ is its shareholder base – which includes key clients (Traverse Drilling), key suppliers (Magna Tyres Holland ) and some prominent small cap institutions that added to their positions in the recent placement.


With a m/c of $17m you are paying a bit for growth, but it does appear that it has the making of what realisticaly could become a very substantial (ie $100+m t/o) company within the next two years.

ADQ also reporting a good quarter and now sitting nicely going into first half. Spread is too wide to pick any up easily at the moment though - definitely wouldn't want to pay up, as under 6cps looks like a fair entry to me.

[Lizard]

Just took a look at Corum Group (COO) on your list. Has increased market cap quite a bit since you posted.

Is a software company in various eCommerce/Pharmacy software/Real Estate software and Real Estate training. Looks like they are on a positive track, with great cashflow for their size and just returning to growth. Had a few glitches in the past, but new management and issues regarding debt and litigation have all recently been resolved. Would think they will be in a position to pay divs in 2013 or to invest in growth.

Biggest downside is that between the top twenty shareholders and those with unmarketable parcels, there probably isn't much stock going to change hands.

Anyway, just thought I'd put a note on for the record.

[ob1kinobi]

Anyone here taken a ride on Jumbo Interactive Ltd?

This came up in SF's search in Dec, and since then its been flying.

MCap now 64mil, SP as of close yesterday $1.525

EPS 12.86, P/E 11.85

The trains already left the station but there was a profit upgrade anns yesterday too

[Lizard]

Didn't see this one on your list, Steve.

Market cap approx $2.4m (at offer of 4.0cps)
Revenue $15m
NPBT of $0.43m in 2011 (December year end)

Software business - Management seems a bit casual, as they have twice been suspended this year - once for not having enough independent directors and once for not filing the Annual Report on time.

Last quarterly suggests a rather disappointing start to the year - followed by some reassurance in the response to ASX query. However, announcement today that the founder retires next Friday, so could see some new blood make something of it.

One for the watchlist only at this point.

[steve fleming]

Didn't see this one on your list, Steve.

Market cap approx $2.4m (at offer of 4.0cps)
Revenue $15m
NPBT of $0.43m in 2011 (December year end)

Software business - Management seems a bit casual, as they have twice been suspended this year - once for not having enough independent directors and once for not filing the Annual Report on time.

Last quarterly suggests a rather disappointing start to the year - followed by some reassurance in the response to ASX query. However, announcement today that the founder retires next Friday, so could see some new blood make something of it.

One for the watchlist only at this point.

Hi Liz,

COM actually has its own thread

http://www.sharetrader.co.nz/showthr...ghlight=comops

I have sold since - I hope the new management team has more sucess than the previous. COM also has a history of a fair bit of accounting manipulation that makes kind of interesting reading if you want to go back over the 10 and 11 annual reports.

[Lizard]

COO now on a small run and price queried. Has been looking good, but too illiquid and I have enough illiquid micro-caps for now!