ANTHONY CLARK: Digging for hidden gems
There are good opportunities for private investors if they are prepared to do the work
I’ve written consistently in this column in IM that often the market cannot see the wood for the trees. Great, uncovered value stocks remain hidden from most in an ever-dwindling JSE.I’ve highlighted several micro-cap gems that have little or no market coverage, apart from me at SmallTalkDaily Research.This is the opportunity for the private investor to get one up on the big institutional boys and bank some real winners by doing some detective work.Often the stocks are simply too small to bother the large funds, or their liquidity precludes their involvement. All the better for the retail investor.I have showcased small family-owned specialist packaging business Bowler Metcalf, whose operating performance despite Covid-19 saw earnings rise 26% to 67.6c per share, with a 19.4c interim dividend.The stock also has the benefit of huge cash (500c per share) and property asset balances (240c), leaving the core operating assets in at derisory levels of a p:e of under three times. Bowler, s...
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