Reid Green & Co is a private investment vehicle and investment research firm that focuses on finding superior investments in the equities markets for its own capital and for its subscribers. Our approach is based on a simple formula: In line with traditional value investing we seek to find listed companies which are priced substantially below what the underlying businesses are worth.
Our subscribers get access to a steady stream of high quality, timely research and fundamental analysis on undervalued companies. We focus primarily on UK and US listed nano cap (£1m - £10m), micro cap (£10m - £500m) and small cap stocks (£500m - £10billion).
Our value investing approach is based on finding listed companies whose share prices are deeply depressed and substantially below what the underlying business is worth. Companies become undervalued due to:
- Market sell offs, panics and crashes
- Complex, misunderstood, overlooked, little known, and unpopular situations
- Temporary business distress or industry distress
- Institutional constraints and behavior
- GAAP accounting rules masking the businesses economic reality
The cornerstone of the approach is made up of our investment criteria and how we seek an advantage.
|· Understandable businesses derived from good reporting and disclosure|
|· Good quality companies with strong financial positions|
|· Incentivised, capable and shareholder friendly management|
|· Price materially below the underlying companies current or future value|
|· Good prospects for realising and/or increasing underlying value over long term|
How we seek and advantage
- Knowing where to look for superior investments
- Superior analysis of commonly known information
- Having a longer time horizon than other investors
A special situation is corporate activity or a corporate event in the past, present or future that will or has significantly changed the value of a company. Special situations we focus on include:
|· Spins offs (de-mergers)||· Bankruptcies exits|
|· Mergers and Acquisitions||· Large changes in capital structure|
|· Partial and full liquidations||· Share repurchases and issues|
|· Restructurings and re-financing's||· Changes in control|
We find special situations attractive because they can quickly bring a company to your attention which is potentially being undervalued, and they give you something specific to base your analysis on.
In these cases your risks and profits are highly related to the effects of the events and not solely dependent on the future performance of the business or the general market.
Forecasting a company’s future earnings and predicting market cycles are magnitudes more difficult than assessing the impact an event will have on a company’s value.