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.

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Jamie Larson
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