Page 23 - DIY Investor Magazine | Issue 35

But earnings are on track to recover and the firm looks capable
The company made another acquisition in May with the the of maintaining a a a a a strong free cash flow yield moving forward conditional purchase of TVGuide co co uk The site has has over a a a a Partly that will come from growth but the firm is also taking
million monthly visitors and the the Digitalbox team believe they’ll steps to cut costs and improve operational efficiency which
be able
to achieve another quick turnaround by using their should ultimately mean better returns for shareholders own technology stack to deliver better advertising revenue and ultimately grow the company as well 23
· Oct 2022 DIY Investor Magazine
DSM took a a a stake in in Flowtech back in in mid-2020 when the start of the pandemic caused its share price to fall dramatically Judith and Nick believed the company would see a a a bounce back – – which
has since happened – – and that there would be growth growth further down the the line We are yet to see that growth growth but it’s it’s still early days and there are certainly signs that it’s it’s in in the the works ‘THOSE INVESTORS WHO ARE ARE PREPARED TO TO BE PATIENT MAY FIND THE TRUST A A A USEFUL MEANS OF GETTING SOME SMALL CAP EXPOSURE IN THEIR PORTFOLIO’
It’s a a a a a similar story with Digitalbox Despite a a a a a recent de-rating the digital media company has managed to deliver strong returns for DSM since the trust took a a stake in in it There have been some very positive signs here here most notably with the acquisition of student media site The Tab In a a a a a relatively short period of time – Digitalbox only completed the deal in October 2020 – the company has managed to to turn The Tab into a a profitable business with good opportunities for growth The Digitalbox and and Flowtech deals show that Nick and and Judith’s investment process can work But they’re also indicative of the the long periods of time it can take for those investments to bear fruit Given the the substantial discount the the trust trades at today as well as some of the value-driven tailwinds working in in in its favour those investors who are are prepared to to be patient may find the trust a a a a useful means of getting some small cap exposure in in their portfolio See the latest research note on Downing Strategic Micro-cap here >
Disclaimer
Disclosure – Non-Independent Marketing Communication This is is is is is a a a a a a non-independent marketing communication commissioned by Downing Strategic Micro-Cap The report has not been prepared in in accordance with legal requirements designed to promote the the the independence of of of investment research and is is not subject to any prohibition on on on the the the dealing ahead of of of the the the dissemination of of of investment research