Archive for the ‘Nameless – email me’ category

Company X – Email Me, Then Buy It

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I don’t make a habit of writing about small cap companies with very little liquidity given the difficulties of entering and exiting a position, but today I’m making an exception because I believe this Company will grow into a much larger one over the coming years (and therefore eliminate the share liquidity issue). However, given current trading dynamics of the stock, I have kept the Company nameless below. If you’d like to learn more just send me an email at: analyst at this domain.

Company X provides direct investment exposure to one of the world’s fastest growing economies without the risks typically associated with emerging market investment opportunities. This company possesses all the qualities one would look for in a great long-term investment: 

  1. A management that is 100% aligned with shareholders. The founder takes no salary, stock options, performance allocation, bonus or anything else. He started the company because he wanted to invest his own money in the country (he has invested the majority of his personal wealth). In total, Management owns 33% of the company and 70% – 80% are owned by roughly 20 people / institutions.
  2. A simple, predictable business model with near zero operational risk. The founder started the company after searching for ways to get early access into one of the world’s biggest secular growth stories. But he couldn’t find anything investible – most of the available opportunities required taking on very large operational or financial risks (mining companies, for example). One area he keyed in on was real estate: it offered very strong leverage to the growth of the economy without any of the operational risks. So he built a company focused on acquiring, constructing and managing real estate in the center of the country’s capital and largest city. He bought in early at discounted prices and put together land packages for current yield and future development. The “future development” part is where the blue sky upside comes from.