Capital Employed Podcast

2/11/2021

I was recently invited on to the Capital Employed Podcast to have a chat with Jon Kingston. We talked a little about my style of investing and then I pitched the tiny AIM listed company MyCelx Technologies Corp (MYX.LON).

You can listen to the show on Spotify, Youtube, Apple Podcasts and Google Podcasts.

Cheers,

David

Disclosure: Long MYX.L

2 Comments

mike

2/20/2021 06:52:51 pm

I think to consider book value as a "base" is a bit difficult. If this is a base, you would not find stocks trading below book value. But many stocks trade lower than book. If the return on equity of a company is continously lower than the expected return on equity/cost of equity (e.g. 10%), a stock should trade below book value. Or in other words, If a company continues to make losses, its equity will simply vanish.

David

2/20/2021 10:32:14 pm

Valid point Mike, I just prefer focusing on assets as it is something I can hang my hat on for valuation purposes, earnings can be so ephemeral with these tiny companies and fluctuate quite wildly. More and more I'm finding that I'm only interested in the assets as a way to ascertain whether a company can survive long enough for something good to happen. I'm not looking for a price point to be hit like NCAV or BV, really I'm interested in just buying left for dead companies that can survive and have another day in the sun.

I'm always trying to refine, simplify and un-muddle my thinking on investing so your constructive criticism is appreciated. Thanks for you continuing input.

Regards,

David

Capital Employed Podcast

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