Glennon Small Companies Ltd · ASX:GC1
Glennon Small Companies — Investor Presentation (December 2015)
33 slides from Glennon Small Companies's investor presentation, Dec 8, 2015
Slide 1: Specialist Small Companies Investment Manager
For personal use only SPECIALIST SMALL COMPANIES INVESTMENT MANAGER December 2015
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This presentation is prepared by Glennon Capital Pty Ltd (AFSL 338567, ABN 84 137 219 866) (Glennon Capital) for general information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context. E
Slide 3: Agenda
AGENDA For personal use only 1. ABOUT GLENNON CAPITAL 2. GLENNON SMALL COMPANIES LIMITED (ASX:GC1) 3. HOW TO EXERCISE YOUR OPTIONS 4. TRENDS IN THE MARKET 5. INVESTMENT PORTFOLIO 6. PERFORMANCE 7. STAY IN TOUCH 8. QUESTIONS 3
Slide 4: About Glennon Capital
For personal use only ABOUT GLENNON CAPITAL 4
Slide 5: About Glennon Capital
ABOUT GLENNON CAPITAL For personal use only Established in 2008 as a specialist small companies investment manager Focused on finding value in small listed companies Undertake our own research Extensive experience investing in small companies, along with extensive industry contacts Only in
Slide 6: Investment Philosophy
INVESTMENT PHILOSOPHY For personal use only We believe the market shows varying degrees of inefficiency We add value by concentrating our research efforts in areas where inefficiencies exist We have found that larger companies tend to have better information flows, and as a result their price
Slide 7: Market Characteristics
MARKET CHARACTERISTICS For personal use only Source: IRESS 8 May 2015 7
Slide 8: Investment Process
For personal use only INVESTMENT PROCESS 8
Slide 9: Company Visits
COMPANY VISITS For personal use only We have met with 39 companies in the last month Proactively organising... ...one-on-one meetings... ...with senior management 4% CEO/Managing 8% 15% Director 6% 8% CFO 23% 10% Chairman 69% Executive Director 85% 73% General Manager, Corporate Outbound Inbound I
Slide 10: Investment Team
INVESTMENT TEAM For personal use only Michael Glennon Alex Shevelev MD & Portfolio Portfolio Manager Manager 17+ years experience in financial markets 10+ years experience in financial markets 15+ years as a specialist small cap manager 10+ years focused on small cap companies IMCA/Money Management
Slide 11: Glennon Small Companies Limited (ASX:GC1)
For personal use only GLENNON SMALL COMPANIES LIMITED (ASX:GC1) 11
Slide 12: Glennon Small Companies Limited
GLENNON SMALL COMPANIES LIMITED For personal use only ASX:GC1 & ASX:GC1O Invests in 20 to 60 Australian small listed companies Michael Glennon is the second largest investor Source: Independent Investment Research (IIR) 785 shareholders at 31 August 2015 Platform availability: Netwealth, HUB24, Macq
Slide 13: Glennon Small Companies Limited
GLENNON SMALL COMPANIES LIMITED For personal use only NTA pre tax (31/10/15) 101.56c Deferred tax liability (31/10/15) (1.42)c NTA after tax (31/10/15) 100.14c Shares ASX Code GC1 Share Price (7/12/15) 98c Discount to NTA (pre-tax) 3.5% Shares on issue 21,687,114 Market Capitalisation $21.3m Options
Slide 14: GC1 Portfolio Characteristics
GC1 PORTFOLIO CHARACTERSTICS For personal use only Characteristics at 31-Oct-15 Top Five Holdings at 31-Oct-15 SIV Silver Chef 4.92% Number of Equity Holdings 33 SRX Sirtex Medical 4.20% Cash Balance 35.8% APO APN Outdoor 3.53% Median Market Capitalisation $387 IPH IPH Limited 3.50% SHV Select Harve
Slide 15: GC1 Portfolio Characteristics
GC1 PORTFOLIO CHARACTERSTICS For personal use only Telecommunication Services, 3.0% Materials, 1.1% Consumer Staples, 5.5% Industrials, 17.4% Financials, 6.0% Consumer Discretionary, 8.8% Information Technology, 13.4% Health Care, 9.1% 15
Slide 16: Best Performing Stocks
BEST 5 PERFORMING STOCKS For personal use only Company Mkt Cap $m Return Coffey 106 185.9% IPH Group 1467 55.6% BWX Limited 254 51.5% APN Outdoor 900 49.2% Capilano Honey 188 38.8% 16
Slide 17: How to Exercise Your Options
For personal use only HOW TO EXERCISE YOUR OPTIONS 17
Slide 18: Exercising Your Options
EXERCISING YOUR OPTIONS For personal use only 18
Slide 19: Trends in the Market
For personal use only TRENDS IN THE MARKET 19
Slide 20: Domestic Growth Is Slow
DOMESTIC GROWTH IS SLOW For personal use only Depressed commodity prices. Resources companies are looking to sell assets and put marginal producing mines on care and maintenance. Eastern seaboard industrial companies were already slow and in the short term reduced interest rates have not had the
Slide 21: Disruption Is a Growing Threat
DISRUPTION IS A GROWING THREAT For personal use only Disruption is changing the way that companies do business. Happening across all industries, especially: Telcos (WhatsApp, WeChat) Media (IPP, Carsales, Realestate.com.au) Retail (Surfstich, The Iconic, Ebay, Alibaba) Travel (Webjet, BY
Slide 22: China Diversifying
CHINA DIVERSIFYING For personal use only While China’s rate of growth has slowed, it is still considerably bigger than it was last year, and the year before that. While the US is still the largest economy in terms of GDP, China is the largest in terms of incremental growth contribution. There ar
Slide 23: Takeover Activity Increasing
TAKEOVER ACTIVITY INCREASING For personal use only There will be increased takeover activity in the small end of the market. As larger companies struggle to grow in their exiting markets they will look for acquisitions that provide them with access to new markets, or provide them with greater mark
Slide 24: Flood of IPOs & Capital Raisings
FLOOD OF IPOs & CAPITAL RAISINGS For personal use only 24
Slide 25: Investment Portfolio
For personal use only INVESTMENT PORTFOLIO 25
Slide 26: The Rear View Mirror – What We Got Right: FSA Group
THE REAR VIEW MIRROR – WHAT WE GOT RIGHT For personal use only FSA GROUP LIMITED (ASX:FSA) ASX:FSA - Share Price Overview Provider of debt solutions and direct 1.8 lending services to individuals and businesses in Australia. 1.6 FSA has three business divisions, namely 1.4 Services, Home Loans a
Slide 27: The Rear View Mirror – What We Got Right: Silver Chef
THE REAR VIEW MIRROR – WHAT WE GOT RIGHT For personal use only SILVER CHEF LIMITED (ASX:SIV) Overview Provides equipment funding to small to ASX:SIV - Share Price 12.0 medium sized businesses in different Purchase shares for sectors. SMA at $2.06 Apr – Oct 2011 The Company operates two segments
Slide 28: The Windshield Looking Forward – What We Like: IPH
THE WINDSHIELD LOOKING FORWARD – WHAT WE LIKE For personal use only IPH LIMTED (ASX:IPH) Overview An intellectual property services firm. ASX:IPH - Share Price 8.5 IPH offers a wide range of services for the protection, commercialisation, 7.5 enforcement, and management of intellectual property.
Slide 29: Performance
For personal use only PERFORMANCE 29
Slide 30: Performance
PERFORMANCE For personal use only $10,600 $10,500 $10,400 GROSS RETURN $10,300 $10,200 $10,100 $10,000 Inception Aug 31 Sep 30 Oct 31 2.50% GC1 portfolio 2.00% 5.79% GROSS RETURN 1.50% Since inception 1.00% 0.50% 0.00% 1/08/2015 1/09/2015 1/10/2015 30
Slide 31: Stay in Touch
For personal use only STAY IN TOUCH 31
Slide 32: Where We Are
WHERE WE ARE For personal use only Social Media www.youtube.com/user/GlennonCap http://www.linkedin.com/company/glennon-capital www.glennon.com.au www.facebook.com/glennoncapital www.glennon.com.au www. twitter.com/misterglennon Independent Coverage Australian Securities Exchange www.glennon.com.au
Slide 33: Contact Information
CONTACT INFORMATION For personal use only Michael Glennon Alex Shevelev Office Address Chairman & MD Portfolio Manager Level 11, 179 Elizabeth Street Sydney, NSW, 2000 E michael@glennon.com.au E alex@glennon.com.au E info@glennon.com.au T 02 9021 7783 T 02 9021 7782 T 02 8060 9519 M 0488 350 000 M 0
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