Coffee Microcaps April 2024 Newsletter
Microcap Green Shoots, Growing Legs?
Microcap Green Shoots, Growing Legs?
Hi Everyone
The S&P/ASX Emerging Companies Index TR finished up +2.76% for the month of April 2024. This continues the good start we have seen from the microcap end of the market in 2024. At the end of April, the S&P/ASX Emerging Companies Index TR is up 8.93% for 2024 versus the S&P/ASX Small Ordinaries Index TR and the S&P/ASX 200 Index TR, which are up 4.25% and 2.34%, respectively. Thus, I have kept the same byline in this newsletter as last month. Again, is the ASX microcap bear market of the last two years over? It is probably too early to call the end of the bar market, but we have seen some very positive signs and momentum in the ASX microcap market in 2024. The green shoots have shown some further growth in the last month.
Upcoming Coffee Microcaps Zoom Webinar Events
On Thursday, May 9th 2024, we will have,
Billy Tucker, CEO of Beonic Ltd (ASX: BEO) 9.00-9.30
Mark Read, CEO of Verbrec Ltd (ASX: VBC) 9.30-10.00
Allan Savins, CEO of BNK Banking Corporation Ltd (ASX: BBC) 10:00-10:30
Daniel Lai, CEO of Archtis Ltd (ASX: AR9) 10:30-11:00
You can register for this webinar here.
On Friday, May 10th 2024, we will have,
Keith John, CEO of Pioneer Credit Ltd (ASX: PNC) 9.00-9.30
Martin Filz, CEO of Pureprofile Ltd (ASX: PPL) 9.30-10.00
Ian Olson, CEO of Pointerra Ltd (ASX: 3DP) 10.00-10.30
Chris Clark, CEO of RocketDNA Ltd (ASX: RKT) 10.30-11.00
You can register for this webinar here.
For anyone who doesn’t know, I regularly host presentations from ASX Microcap companies via Zoom Webinars. Two companies usually present on Thursday mornings from 9 a.m. to 10 a.m. AEDT Sydney time.
I want to thank Raas Research for sponsoring all the Coffee Microcaps Virtual events.
The ASX Microcap companies that present generally have the following four criteria.
•Under AUD$300m in market capitalisation
•In revenue and approaching cashflow breakeven or already profitable
•Outside the resources and biotech sectors
•"Industrial Microcaps” Include microcap technology, financial services, consumer goods, industrial products or services business, healthcare stocks, etc.
I have created a separate email list for invites to these Zoom events so that I am not spamming all my subscribers. If you want to be added to the events list, please email me at mark@coffeemicrocaps.com, and I will add you. I would love for you to join us for these events, which are free to attend.
Please check the Coffee Microcaps social media pages for details on the times, dates, and presenting companies.
Coffee Microcaps YouTube Channel
All the Zoom events get recorded and uploaded to the Coffee Microcaps YouTube Channel. In addition to the ASX microcap company presentations, I interview leading ASX microcap fund managers on some of their top picks. Occasionally, we also have presentations or interviews with some international microcap investors.
So, if you can’t join the Zoom webinars due to work, kids, life, or whatever, subscribe to the Coffee Microcaps YouTube channel and hit the bell to receive notifications when new content is added.
Also, the description section of each video on YouTube has relevant chapters, so you can jump to the start of a specific company presentation if that’s what you are after in a particular video.
Coffee Microcaps Morning Meeting, April 11th 2024
Firstly, Close The Loop Ltd (ASX: CLG). After a long absence, I welcomed back fellow Irish man Joe Foster. Joe walked us through where the business is currently, following some recent acquisitions and expansions into new international markets. CLG has deepened its relationship with its OEM partners, especially HP, in its e-waste and print waste recycling division. CLG has also fully launched its TonerPlas product in the Australian market and is looking to drive organic growth for this product with major asphalt companies in Australia. However, the product also has international potential. There are many moving parts in the CLG business, but it is positioning itself squarely as a key player in the circular economy. This was an interesting presentation from Joe for all microcap investors, especially for ethical or ESG-focused microcap investors.
You can watch the CLG webinar recording on the Coffee Microcaps YouTube Channel.
Coffee Microcaps Morning Meeting, April 18th 2024
Secondly, we were delighted to welcome back Matthew Jinks from SKS Technologies Group Ltd (ASX: SKS). Matthew talks about how, after investing in the company’s systems and product offering over the last few years, they are not starting to see the fruits of this capex with improving margins and sales. The business now has a national presence and is especially focused on work packages for enterprise clients and the Department of Defence in the NT, where they have a strong presence. With a turnaround of the business looking pretty much complete, the business is really looking to focus on revenue and profit growth moving forward.
You can watch the SKS webinar recording on the Coffee Microcaps YouTube Channel.
Coffee Microcaps Morning Meeting, May 2nd 2024
Finally, we were delighted to have another Irish CEO when we hosted Sean Halpin from Scidev Ltd (ASX: SDV) just last week. Sean walked us through the business, the most interesting part being SDV’s solution for treating PFAS contamination in water and at physical sites. SDV has a world-leading product in treating this type of contamination, and it has emerged as a major environmental concern for governments worldwide. Australia is on the front foot with this compared to other nations, as shown by recent contract wins with the Victorian state government and other public bodies. SDV is now looking at how to take its product to international markets such as the USA and Europe, which are also starting to respond to this major environmental and public health issue
You can watch the SDV webinar recording on the Coffee Microcaps YouTube Channel.
Content Recommendation
As part of this newsletter, I also want to highlight some good content worth sharing with my subscribers. Hopefully, the content will be something subscribers will also enjoy and get some value from.
Australia is not an outlier because we are still in a bear market here in ASX microcap land (notwithstanding the positive signs noted above). The Canadian microcap market has also been torrid over the last few years. Thus, this recent presentation, “The Death of Microcaps?” by Mathieu Martin from Rivemont Investments and the author of the Stocks and Stones Substack blog and Twitter handle of the same name, was interesting to watch and reminded me that globally, this asset class has been in a bear market but there is cause for optimism. The key message for me from Mathieu's presentation was that stocks at this end of the market are more overlooked than normal, and that is where the opportunity is.
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