Shallow Dive

In by Ryan McCormickLeave a Comment

Ryan McCormick

Hey guys, absolutely love the show and listen whenever a new episode drops. I’ve recently been listening to your summer series podcasts and think you guys do a terrific job drilling down into individual stocks. (shallow dive is underselling your analysis). Although your summer series is done and dusted for 2019, I would love you guys to do a shallow/deep dive into a stock I hold Scout Security (SCT ASX). SCT has to be the most bizarre stock I own. No liquidity at all, rarely traded, strategic deals with huge multinational companies (Stanley Black and Decker, Prosegur), about to go cash flow positive, massive insider ownership, including Amazons Alexa Fund featuring on SCT’s register as a 2% + holder. I don’t get it? there are so many rubbish/no hope companies on the ASX that have been fleecing holders for years with endless capital raises, absurd director salaries, delivering zip, zero, nada. This company despite its market cap has more potential than 50% of the speculative end of town on the ASX. US-based stock, growing into emerging markets, solving a growing need in DIY / IOT home security. I understand they are one of many in this space, with no real moat, but wow, it has to be a lack of promotion to Australian small/micro-cap funds that’s the issue? When you’re listed on the ASX you need to get in front of Australian investors! Anyway, I would love for you guys to put SCT on your list of potential shallow dive analysis stocks going forward. If anything potential big takeover target in the future (Bryce will be all over it). haha.

Cheers Guys, keep up the good work helping build financial literacy in Australia. Love it!

Ryan McCormick.