Hidden gems in global small cap value $XPEL, $TRRVF and $JSCIF with Chris Waller

Hidden gems in global small cap value $XPEL, $TRRVF and $JSCIF with Chris Waller | S07 E21 – The Acquirers Podcast

Market views

Bullish

JUDGES— Judges Scientific acquires small scientific instrument companies, often monopolies or near-monopolies in specialized equipment, at attractive valuations of 4-5 times EBIT. The company targets businesses spinning out of colleges, particularly in the UK, that produce high-value scientific instruments.
TERRAVEST— TerraVest employs a disciplined acquisition strategy, focusing on buying 'mom and pop' businesses in niche industries where there are only a few companies. They prioritize cash generation over aggressive growth, which allows them to make strategic acquisitions at attractive valuations.
XPEL— XPEL is currently operating with a bloated cost base due to overinvestment in anticipation of continued high revenue growth. The company has acknowledged this issue and is working on reducing costs and growing into their existing infrastructure, which could lead to improved financial performance.
SMALLCAP— There are significant opportunities in small cap value stocks due to strong market forces creating dislocations. Despite challenging market conditions, these forces are creating potential for value investors in this segment.
UKEQUITIES— UK equities have been undervalued for an extended period, presenting potential investment opportunities. This trend of undervaluation is not unique to the UK but is particularly pronounced there.

Not investment advice.