The smaller-cap market is followed by few analysts, and even fewer institutional analysts working for portfolio managers in the sector. This creates a gap. It is often up to independent analysts like @smalltalkdaily to cover these gems and report on results and prospects.I frequently get the lead on the stories and find that only when the trading update or results appear on Sens does the market wake up and smell the sweet perfume of potential. By then it’s often too late.
This has been and remains the case with two smaller companies I have followed for two decades — steel products manufacturer Argent Industrial and packaging and plastics business Bowler Metcalf. Argent Industrial, which is trading at 551c, has a market capitalisation of R381m. Bowler Metcalf is priced at 870c and is valued at R683m.Despite the impact of the Covid-19 pandemic both released market-pleasing results recently and, more importantly, detailed their inherent undervaluation.