Andrew Pogue

Posted to paid subscribers this AM about a small cap defense company I've been accumulating shares in. High ceiling, great r/r. I'll add the short pitch to this post tomorrow after the close.

I’ve tracked this obscure Nordic micro-cap for nearly a decade. It recently completed a massive transformation from a lumpy, high-cap-ex legacy business to a capital-light industrial services platform. The kicker? It’s growing, despite trading at ~2x expected 2026 EBIT. / 30% order book growth YoY / 60-80% discount to regional peers / Critical infrastructure play / 200%+ upside to reach a 9x EV/EBITDA multiple. We'll find out more shortly when Q4 earnings come out.

I'm excited to profile a large holding on the sub tomorrow morning. This company checks all the boxes I look for in an investment: / Illiquid. Under-followed. Significant float is held by management. Sales cycle lags the demonstrated forward momentum of the industry. / A long-term investment that has significant tailwinds I think will continue for a long time. If this were a private opportunity, I would lock-up my investment over the next decade at current prices. / Net cash, capital light company that should be able to fund itself through internal cash generation. / A reasonable valuation much lower than peers. Organic growth that should see a double of the top/bottom line over the next 3-5 years.