Enjoyed Chris and Zach's podcast. How come they chose PNG/TSU as their small caps and not some of your usual favourites like PRL or PAY . Also I am somewhat surprised that whilst PNG/TSU do get "airtime" in your Q&As, they don't make it in your small caps short list. You must have some rationale. Somewhat puzzled, that's all.
We actually have previously discussed PRL and PAY on the podcast. PRL was looked at in ep. 4 and PAY in ep. 2. We try to look at different names each episode which is why we went with PNG & TSU this time.
As to why PNG and TSU are not shortlisted: For PNG, the company is still very small relative to some of the other small caps we suggest. It crossed $100M in market cap only in December 2023, so we want to see more momentum there before we shortlist it as one of our favourites, although we do like it. Also, operating in the defense space, revenues will be highly contractual, so we want to ensure PNG has a sustained ability to win big contracts. For TSU, while size is less of a concern relative to PNG, we had mentioned on the podcast some of the chopiness/sideways price action it has seen over recent years due to writeoffs impacting profitability. If we see increased momentum in profitability and beating expectations on a quarterly basis, it would make the list. Both these names are not far off from making our short-list, but we want to see things solidfy over a few more quarters.