Hi,
I’m ok and flexible with these things in small caps if the valuations are very attractive and from number perspective I can get a feeling that nos are good and true. For eg in the case of Lincoln, there has been material repayment of debt and now they are having surplus cash. All this is possible only if the business is there and it generates free cash flow. I don’t think that a pharma co is available at such low valuations (and the reason is corp governance and lack of aggression). But things do change and at certain point good advisors come and companies transform too.
Cheers,
Ayush
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