Small-Cap Value

Small-cap value investing requires a different approach to large-cap value. Smaller companies generally don’t have the long history of success and dividend payments that are an integral part of the UK Value Investor newsletter’s approach. Instead, the company’s assets can be used for valuation instead of earnings. Ben Graham developed the original version of this approach in the 1930s while the strategy used here is a modernised version.

You can see the original small-cap strategy article here.

Haynes Publishing–On the road to nowhere?

April 10, 2012
Haynes Publishing–On the road to nowhere?

Just about everybody who has ever owned a car must know what a Haynes Manual is.  For many they bring back memories of a misspent youth trying to squeeze another horsepower or two from an aging Vauxhall Chevette or Mini 1000.  With the advent of ever more complex cars which are tuned and serviced...
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Promethean World–Investing in high tech education

March 19, 2012
Promethean World–Investing in high tech education

It’s time I got back to the task of building up my portfolio of small-cap, low debt, deep value investments.  This week the target is Promethean World, a company which makes interactive and collaborative technologies for education and business; think of white boards that you can write on and then move around what you’ve...
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Fiberweb – With the turnaround almost complete, are the good times about to begin?

March 5, 2012
Fiberweb – With the turnaround almost complete, are the good times about to begin?

There are lots of different ways to be a value investor.  When I’m investing in large companies I look for stability and strength above all, followed by the potential for growth and a low price, of course; but with small-caps I’m looking for something else entirely. The very fact that these businesses are small...
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Northamber – A Berkshire Hathaway clone?

February 27, 2012
Northamber – A Berkshire Hathaway clone?

Just last week I wrote about how investing in large and successful businesses is generally a happier affair than messing with sickly small-caps, and to prove the point I offer Exhibit A: Northamber. If you’ve been around the value investing blogs over the last few years you’ve probably already heard of Northamber.  I owned...
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Centaur Media – Do Intangibles Have Value?

February 20, 2012
media globe

This small-cap media company can be yours today for only 39p a share.  It has a long history of (adjusted) profitability and dividend payments and the yield is currently about 5%.  That may not sound like much but the dividend is currently in ‘recession mode’ at 2p per share, down from over 4p in...
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Flybe – A low cost airline in every sense

February 14, 2012
Plane

Flybe is the next candidate for my small-cap value fund which is based on a variation of the net-net investment strategy. Overview Flybe is Europe’s largest regional airline.  In 2002 it had a name change from British European to Flybe and moved to a super-low cost business model which it had to do to...
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Molins – Another brick in the net-net wall

February 8, 2012
Gears

I’m still very much in the process of filling up the 21st century net-net portfolio with mostly small companies trading at a discount to book value and sometimes tangible book value.  Because these companies are often not what I’d call ‘global superstars’ there is probably more risk involved in owning these things. That’s why I also...
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Small-Cap Value Step by Step with Psion

February 1, 2012
Small-Cap Value Step by Step with Psion

Digging around at the small-cap end of the market can be a dangerous activity, especially if you’re investing like a loose cannon by buying without a plan or strategy. Despite these dangers, value investors do love their small-caps and so it’s worth spending some time drawing up a repeatable and systematic plan for uncovering...
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Titon – A Classic Ben Graham Net-Net

January 24, 2012
Titon – A Classic Ben Graham Net-Net

If you run a net-net screen of some kind it’s likely that you’ll have come across this (very) small cap stock.  Titon Holdings is a Ben Graham net-net in almost every way. It’s a manufacturer, it has property, plant, fittings and fixtures and equipment to bolster his beloved tangible asset value.  It also has...
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3 Signs that AGA Rangemaster Could be a Bargain

January 17, 2012
3 Signs that AGA Rangemaster Could be a Bargain

AGA Rangemaster, owner of a truly iconic kitchen brand, could well turn out to be an incredible bargain.   In fact, investors can buy the company today for little more than the cash it holds in the bank.  It may be that – for the moment at least – a price of around 75p is...
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