‘Scale’ is a Two-edged Blade

I have heard many people cite ‘scale’ as a business’s barrier to entry or even its competitive advantage. Normally, the argument goes along these lines: ABC Company is XXX big, thus they can afford numerous overheads/compliance/regulatory costs and/or certain capex and/or … Continue reading

Revisiting Some Older Calls

Let me spend some time here updating older calls as we go into 2018.   Top Ten Investment Cases in AWSM While Blue Label Telecoms (BLU) still remains in AWSM’s top ten, we have obviously exited Consolidated Infrastructure Group (CIL). … Continue reading

CIL: H1:17 Earnings Miss, Share Price Misses More

I have written about Consolidated Infrastructure Group (CIL) a number of times (see this), but after the stock’s earnings miss yesterday I think I should update that view. I cannot speak for the market, but I was expecting HEPS of … Continue reading

Small Caps With Foreign Exposure

There is a misconception that the small (and mid) caps on the JSE are purely domestic. While historically relatively true, many small caps have steadily pushed outside of South Africa in the last decade or three. Let’s pause and consider the … Continue reading

When Book Value is Rubbish

Firstly, for some academic background to this article read this one: Smoke, Mirrors & Balance Sheets. Now, when is it justified that a stock trades below book value? Well, the answer is simple enough: when book value is overstated. But how … Continue reading