Portfolio changes 19/06/23

Today I picked up a further 3,009 shares of tinyBuild (TBLD) at an average price of £0.33 per share, after the stock took a rather dramatic tumble, ending the day just above £0.30, which equates to a market capitalisation of around £62m ($80m) - a truly ludicrous valuation.

I'll be releasing a full update on the company after I've attended the AGM next week, but let me give you a few figures derived from the annual report to illustrate just how ridiculus the current share price is.

Let's start with the net profit of $11.5m, giving a P/E ratio of 7.0. Then there's the total equity of $111.6m, implying a P/B of 0.7. We can also look at the operating cash flows of $19.3m, which grew by 45% last year, and give us a P/OCF of 4.1.

I'd speculate that the fall has been caused by a larger shareholder (there are a few funds with positions >3%) that has decided to sell their position into an illiquid market.

My personal conviction continues to grow as I follow the company, and I'll keep buying the shares while the price remains irrational. I expect my portfolio concentration to get uncomfortable for most people, so please don't blindly follow my example and ensure you do your own due diligence.

Subscribe to Firm Returns

Sign up now to get access to the library of members-only issues.
Jamie Larson