Sondre Stokke

This week, while going through a bunch of nano-caps, I found one of the most intriguing opportunities I’ve come across in a long time. It’s currently trading at around 3x earnings with recurring revenues. It’s an extremely illiquid stock that has been almost completely overlooked, partly because it only reports in a foreign language and its investor relations communication is weak. The company operates in a cyclical industry that has struggled recently, but even as revenues have dipped, margins have held steady or even improved slightly. They also carry zero net debt. What makes it stand out is that, even at a worse part of the cycle, the business remains profitable and forecasts point to industry improvements in 2025 & 2026. In other words, you’re buying a company with recurring revenues at 3x earnings during the toughest point in the cycle. I’ll be publishing an in-depth write-up on my Substack next week, so stay tuned. If you retweet this and send me a DM, I’ll share the name of the company with you in advance.