New Nanocap Idea
A high quality VMS business flying under the radar
It’s been a while since I’ve written about any new ideas. I’m sorry but I also don’t want to simply push out material that is either already well understood or adds nothing for readers in terms of idea generation.
Today’s post will be about a highly illiquid stock that I own. I will refrain from naming it as I have no interest in taking flack about moving the stock price but if will give you enough information to be able to determine the stock if it is something that does interest you. The elevator pitch here is a vertical market software with sticky recurring revenues hiding in a nanocap and its revenue quality is masked by distribution of a large third parties tests to end customers that has very low margins. The business recently turned profitable at very early scale in its growth plans and future growth should lead to significant margin expansion as fixed costs for its software and overhead and working capital should be covered.