Capital Signal: Finding Gems edition

In addition to the news today I want share that I’ll be embarking on a mission to try and define what the broad make up of a “good” company is.

Behind the scenes I’ve been analyzing companies by hand doing good old fashioned financial analysis from years prior.

Diving into announcements to grab the appropriate figures is absolutely as painful as I remember it being. The end goal of going back to grass roots analysis was to see where systems can be built for
1. the automated extraction of this data to tell the story of the company
2. the summed analysis of every company to tell the story of the sector.

My thinking was primarily if you can identify all key characteristics of what success looks like in this current climate than building additional tools to keep a scan on the market and track companies that meet these conditions will be much easier, or where they fall off from these conditions.

To begin I’ll be starting with every company that has done at least 300% in the last 3 years. I plan on taking additional snap shots to see companies that rallied in more challenging climates. Lucky for us we have recent accessible data from a constrained liquidity environment which will be useful for seeing where capital goes to replicate when money is short.

I should also note that these updates will be some what sporadic and be posted as I uncover something new. I will likely be posting these on my Linkedin or X (Twitter) accounts.

I Identified 59 companies that have rallied more than 300% in the last 3 years. Some of these were nano caps and the price movements were irrelevant so I excluded them from the analysis bringing us to 51 companies (the condition being they must have at least a 40m market cap now).

Here are some of the stats

Sitting on top of the leaderboard is WA1 with some other usual suspects (DRO, SKS, ASL).

The distribution shows that there are plenty of multi baggers to be found in the small cap range.

From my tagged database of ASX companies we can dive in a little further and see what exactly high growth ASX companies are doing.

Funnily enough mining gold remains as good an idea as it was long ago.

So this is a broad brush analysis of what is comprising a multibagger in the current environment. In the coming days/weeks I’ll look further into the make up of these companies and see what we can find in terms of their operations.

And without further ado here are the deals and guidance from yesterday.