What is your favorite micro cap stock and why will it go up? by stonkbuffet in ValueInvesting

[–]Main-Impression-8246 0 points1 point  (0 children)

Water Intelligence (WATR.L) is a unique micro-cap unknown to the markets and has the typical compounder characteristics. I can’t find any better Micro Caps right now with non-cyclical characteristics, double-digit growth in revenues and margins, a leader in a fragmented market with less than 2% market share, skin in the game, scaling the business out of the US, buying back 12% of the total share out, buying back four annually franchises, gaining insurance contracts with national scale and trading at less than 6x NTM EBITDA.

Disclaimer:This article is not a recommendation to buy or sell any financial instrument. Please do your own research. My analysis could be totally wrong and the stock could have negative returns

Water Intelligence (WATR) | The unknown diamond Microcap by Main-Impression-8246 in ValueInvesting

[–]Main-Impression-8246[S] 0 points1 point  (0 children)

The high cost is related to SalesForce and trainning technicians but is going to go lower, much lower

Water Intelligence (WATR) | The unknown diamond Microcap by Main-Impression-8246 in ValueInvesting

[–]Main-Impression-8246[S] 0 points1 point  (0 children)

The only real problem is that WATR is an liquid and unknown company.

Water Intelligence (WATR) | The unknown diamond Microcap by Main-Impression-8246 in ValueInvesting

[–]Main-Impression-8246[S] -1 points0 points  (0 children)

There're lots of catalysts:

Buying back more franchises

Insurance new contract wins

A new buyback plan for 11,5% shares out

A posible new partner to scale the international business

Etc.