Interesting profitable Small and Micro Caps

Do any of you have profitable small or micro-caps on your watchlist or within your portfolio?

I am interested in looking at some small “profitable” companies and was wondering if any of you have some good suggestions that I can look into. Mainly thinking of AIM or other european stocks, but I am open to stocks from anywhere :smiley: .
I would count the company as “profitable” if it was profitable either before the pandemic or during it, even if last year it was not (So as long as it was profitable in one of the two, 2019 or 2020).

I will start with one, RA International.

2 Likes

MWE MTI Wireless Edge

1 Like

Boston Omaha $bomn - I win

Let’s check this thread in 10 yrs time :sunglasses:

3 Likes

First we have to classify what are market cap for those. There are several classifications according to the market where they are traded.

The US market cap classification is higher than other countries.

1 Like

How about we generalise to companies with an mcap under 100m?

1 Like

NASDAQ: MNDO
mcap of ~$50 million
It’s one of the first stocks I ever bought, and the only one from that time that I haven’t sold. It’s a small company in a space that is increasingly dominated by larger players. It’s more of a nano cap value play as this company doesn’t really grow and pays out almost all of its profits as an annual dividend.

It doesn’t have any debt though so the balance sheet is very nice. The op cash flows are steady and cover the dividend nicely. They have also made some acquisitions (entirely cash funded) which allowed them to still have some rev growth and maintain their net income.

I have a total return of about 49% on it through two and a half years (did not reinvest the last couple of dividends though).

1 Like

Let’s say under 200m EUR/GBP/USDto give some leeway.
It’s just an arbitrary number though. If its a bit above then that it still okay, its just to get ideas.

Question is are we able to find these on 212, for a small and micro cap pie?

1 Like

As long as the stock exists and it can be reached somehow, I am happy. Ideally on T212 and fractional, but if I think it is a good investment I am happy to search it elsewhere :smiley: .

RAI is fractional.
MNDO ad BOMB are not currently fractional.
MWE not currently available on T212 from what I can see.

Some good ideas coming in :smiley: , any more ideas?

Semler Scientific.

How small do you want to be?

1 Like

Lets say anything under 200m GBP/EUR/USD, but considering that we are looking at small and micro caps lets say that the smaller the better :smiley: .

1 Like

Not sure if this qualifies, but: Virpax Pharmaceuticals (VRPX).
They’re not currently profitable but they’re a newly IPO’d Pharma company. IPO was at $10 currently hovering around $5 with a market cap of about $25M.

They’re going through clinical trials for a few different drugs, the most significant being Envelta, with expected revenues of $7B. This would put it in the top 10 of the highest earning pharmaceutical products worldwide. It’s early days though and any real gain is likely a year away at least, with decent potential for offerings along the way. Here’s a link to one of their presentations: https://s3.amazonaws.com/cdn.irdirect.net/PIR/1402/5325/VRPX%20Non-Deal%20Road%20Show%20Presentation%2003.02.2021%20Final.pdf

Happy to remove if this isn’t in the proper spirit of this thread.

2 Likes

Try Accsys Technologies (‘AXS’) - UK AIM listed business with a £275m market cap. Positive EBITDA etc and with a strong 3-5 year expansion plan underway.

They basically make a bespoke wood protection products which treats wood from sustainable forests and gives it better protection than higher carbon, man made wood products. So there is a strong environmental and sustainability angle here too.

Lumber prices are at multi year highs, so wood is currently in demand which should provide a tailwind but there are good growth plans on their website.

Appreciate this isn’t as exciting as a Biotech or Crypto punt but it’s a multi year buy on the dips and hold investment for me. I hold. DYOR.

1 Like