Coffee Microcaps June 2023 Newsletter

Live Conferences & Upcoming Webinars

Hi Everyone

Welcome to this month’s edition of the Coffee Microcaps newsletter. June 30 marked what can only be described as “annus horribilis” for ASX microcap investors. While the 1-year number doesn’t look too bad, it belies a really tough year for microcap investors. However, we have seen some pretty decent takeover action in the microcap technology space throughout the last 12 months. Most offers came at very hefty premiums to the last traded prices, which is encouraging and signifies the value at this end of the market presently. In next month’s newsletter, I will have the performance of Australian microcap managers detailed for the last year, so watch out for that.

The performance of the S&P/ASX Emerging Companies Index as of June 30 2023.

New Virtual Events Sponsor

I am delighted to announce that Sharesight has been onboarded as the new sponsor for all our virtual events here at Coffee Microcaps. If you are unfamiliar with the business, they provide investors with powerful portfolio tracking software that lets you check your investments in one place with the award-winning performance, dividend tracking and tax reporting. As a user of the software myself, I am happy to recommend it and have them aligned with the Coffee Microcaps brand.

I would also like to take this opportunity to thank DMX Asset Management, who has been the virtual event sponsor for the last 18 months.

Upcoming Coffee Microcaps Zoom Webinar Events

For anyone who doesn’t know, I regularly host presentations from ASX Microcap companies via Zoom Webinars. These events usually happen on Thursday mornings from 9 am - 10 am Sydney time, with two companies presenting.

I want to thank Sharesight 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” In other words, 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. These events are free to attend.

The next events will occur at the end of July and early August once the June Quarter Appendix 4c’s are released. Keep an eye on the Coffee Microcaps social media pages for details of the times, dates and presenting companies.

Coffee Microcaps YouTube Channel

All the Zoom events get recorded and uploaded to the Coffee Microcaps YouTube Channel. As well as the ASX microcap company presentations, I do interviews with 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, you can subscribe to the Coffee Microcaps YouTube channel and just hit the bell for notifications when new content gets added.

Also, if you look in the description section of each video on YouTube, it has the relevant video 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 Thursday, June 8th

Glenn Riddell COO & Ben Milsom CCO, of Plenti Group Ltd (ASX: PLT) 9.00-9.30
Craig Dower, CEO of QANTM Intellectual Property Ltd (ASX: QIP) 9.30-10.00 You can watch the recording on the Coffee Microcaps Channel below.

Coffee Microcaps Morning Meeting Thursday, June 23rd

Peter McGrath, CEO of Comms Group Limited (ASX: CCG) Kinda Grange, CEO of Maggie Beer Holdings Limited (ASX: MBH) Bradley McCosker, CEO of Australian Bond Exchange Holdings Limited (ASX: ABE) You can watch the recording on the Coffee Microcaps Channel below.

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.

This month, I wanted to share an interesting article, “From Hustle to Scale” by Ian Cassel from Microcap Club. Ian talks about the evolution of a microcap from a nanocap (under $50m market cap) to a microcap ($50 - $500m) and how management is crucial to this progression, and that you may need different management skills for different stages. This might even mean the founder stepping aside from the CEO role. I really liked his quote,” The MOAT of any small business is the management.” The article also gives a constructive overview of how to think about a microcap company's current CEO or newly appointed CEO and whether they are the right type of leader for the current stage of the business’s evolution.

Thanks for reading. If you haven’t already subscribed, you can do so below.