Quick Value #264 - 7 beaten down small caps
A list of 7 small caps I've been buying
Today’s post:
Group of 7 small caps down 20-30% in the past month
Average market cap of $1bn with 2x leverage
Collectively trading at 5x earnings/FCF
Consider this a “markets in turmoil” version of VDL. Today I’m highlighting a few names I’m buying or adding to. Some of these are special sits (activist, post-spin, recently completed large divestitures, etc.) and some are plain vanilla cheap stocks with capital allocation as their “catalyst.” A few have direct tariff exposure but most of these are indirectly impacted (i.e. economic activity, consumer spending, etc.) so I think this basket will do quite well over the next few years.
For newer subscribers, check out the VDL “home base” for background info, links to key resources, articles, trackers, etc.
As always, leave a comment with thoughts or stocks you want to see covered and check out past posts here to get a flavor for recent write-ups.