Coffee Microcaps October 2023 Newsletter
Microcap Fund Manager Interviews
Hi Everyone
Many thanks to those of you who joined us at the Coffee Microcaps Live Conferences in Sydney on October 31st. It was great to see some old faces and indeed some new ones as well. The next in-person events should happen around March/April 2024, so watch out for further details of that event in upcoming newsletters.
Microcap Fund Manager Interview, October 26th 2023
I have been catching up with a couple of microcap fund managers in recent times, given this bear market we are in, to see what stocks they are looking at. This past month, I caught up with two more fund managers.
The first PM up is Peter Johns from The Westferry Fund. Peter should be no stranger to ASX microcap investors, as this is his third time joining us for an interview. He is also a regular poster on X/Twitter.
Peter chose Connexion Telematics Ltd (ASX: CXZ) and XRF Scientific Ltd (ASX: XRF) for our interview.
You can watch the recording on the Coffee Microcaps Channel below.
Microcap Fund Manager Interview, October 30th 2023
The second PM up is Paul Palumbo from Acorn Capital. Paul was joining us for the first time, and it was great to hear from him. Hopefully, we can get some more of the Acron team in for an interview or two during 2024.
Paul chose Micro-X Ltd (ASX: MX1) and ImpediMed Ltd (ASX: IPD) for our interview.
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.
As anybody following the ASX microcap/small-cap stock research space over the last decade will know, the decline in analyst coverage and research has been a real blight on this end of the market. While the ASX research service does provide some research, it is far from an ideal solution and certainly lacks breath, given the long tail of small and microcap stocks on the ASX. There are also issuer-sponsored research providers who have come to the fore and generally with good quality research, albeit limited to the companies who will actually pay and recognise the value of it.
With the UK now out of the EU and making significant noises about making London the centre of finance in Europe again through regulation changes, a recent paper on investment research made for interesting reading. With EU regulations such as MiFID 2 no longer a consideration, the UK seeks to boost analyst research coverage of UK equities and, specifically, UK small caps. The recent report which was commissioned, had some solid recommendations which could be equally applicable in the Australian market. Let us hope the ASX, ASIC and Treasury are in touch with their UK counterparts on this issue and taking note of what follows from this report in terms of new UK regulations.
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