Real Estate Arbitrage (this Aussie small cap is worth a look)
Profitable, debt-free, founder-led business that has quietly compounded earnings at over 20% per year. P/E 11 with a 5% dividend yield.
Dear Readers,
Welcome to another edition of ROE The Boat.
What if I told you there’s a profitable, debt-free, founder-led business that has quietly compounded earnings at over 20% per year, pays a growing dividend, and still trades at just 11 times earnings?
No, it’s not a hidden gem buried in some obscure corner of the market. It’s been listed on the ASX since 1999 - hiding in plain sight.
For this issue we’re heading back to to Australia to take a closer look at a company that pioneered an entire industry nearly 50 years ago and is still growing today.
Every month we publish exclusive research on profitable growing small/microcaps trading at cheap prices.
To read these reports, and to access the full archive, consider becoming a paid subscriber. An annual subscription is just $100.
The company I’m sharing ticks the following boxes…
founder-led
20% operating margins
scalable business model
recurring revenue streams
high returns on capital
no net debt
growth opportunities ahead
5% dividend growing every year
Let’s dive in…
Please note: this article should act as an introduction to the company mentioned and is not a complete deep dive. Make sure you do your own research before investing in any company mentioned in this newsletter.