Dear Readers,
For this issue I want to share with you another UK small cap that I’ve recently added to the Pirate Pension Fund.
It has an exceptional long-term record, a founder-style CEO who owns a chunk of the company, and also has an impressive moat built on scale, specialist expertise with sticky customer relationships.
The company has had a tough few years and does have a few hairs on it.
However, the underlying business model remains impressive, and is now returning to growth mode.
I believe the share price is due for significant re-rating and I’m not the only one.
Just this year we have seen the following funds appear on the shareholder register…
A US small cap value fund, a Canadian deep-value fund managed by a well-known investor, a Dutch family office, and a German ‘Buffett-loving’ fund have all been building significant positions.
These funds have excellent track records and recognise value when they see it.
The share price is starting to gain momentum having printed a giant monthly green candle for September, broken out of a six month consolidation phase, while also crossing the 200 day moving average.
Something is stirring in the undergrowth.
Let’s dive in…
Please note: this article should act as an introduction to the companies mentioned and is not a complete deep dive. Make sure you do your own research before investing in any company mentioned in this newsletter.