3 small cap buys (and 1 sell) from this reporting season

Ben Richards

Investment Analyst


Ben Richards from Seneca Financial Solutions expresses his view on different companies in the small-cap sector. He speaks highly of GQG Partners (GQG), a global fund manager, predicting strong results owing to the company’s expansive portfolio, particularly in US technology stocks. He anticipates a substantial rise in dividends, turning attention to their impressive 8.5% dividend yield. He lauds them for their remarkable growth and quality, signalling high returns.

On Fiducian Group (FID), Ben sheds light on the company’s diversified business model, encompassing financial planning and platform administration. He appreciates their 60% profit before tax margin and impressive growth rate, asserting his faith in the company. As for RPM Global (RUL), he labels it the cheapest software stock on the ASX, applauding their successful transition to subscription revenues. He hints at their promising future, based on their solid contribution to mine planning and simulation software.

One company he shows concern about is Ordinate. Despite acknowledging Audinate (AD8) as a market leader in audiovisual networking solutions, he cautions investors on its surging share price. He identifies warning signs such as management selling shares and the overestimation of the total addressable market. In contrast to his generally positive outlook, he advises reducing investment in Audinate as its valuation escalates unreasonably.