A A Mannolu

Everyday Investor. Making and sharing my bets on small and mid cap positions. On track to achieve my first 100K. $THEON, $ITECH, $AMR, $IBKR, $AVT.B, $ENPH

[A A Mannolu @AAMannolu]

Individual Stock Musing ( 2nd Oct 2024 )

Finally I started a position on a defence supplier of Europe. Let me share my conviction on the same.

Take it with your own filter, research and risk appetite. 😊

Company: Theon International Plc ( $THEON / $THEON.AS )
They develop and manufacture night vision, thermal imaging products, mainly night vision monoculars and binoculars. Basically an optronics company.

Background:

I was looking for a local small cap (NL or EU based) that I expect to make it as a five bagger in the next 3 to 5 years. So having this as a goal, Theon came in my filters passing good financial threshold.

* No debt (considering the cash pile and earnings) 125M cash against 59M borrowings
* Reduced debt considerably in the past 5 years.
* Have some cash from their IPO with a plan to M&A. (125M)
* Good ROE (24%)
* Moderate debt to equity ratio (from 200+% to 32% in 5 years) even with the new share sale.

Thesis:

My main thesis is the EU increasing its military spending to reach the target of 2% of GDP as per NATO requirements.

This was grossly neglected in the past until Trump made it public forced EU hand. Now each NATO member is either increasing or plans to meet it in the coming years.

This shows up in the recent purchase orders from Germany and Belgium in Theon’s backlog. They still have 500M+ soft order backlog to go through. Theon works already with 24 member states and other Asian countries.

Considering the global geopolitical situation this keeps the tailwind to furthermore.

But, I am not counting on those as my main thesis only relies on the increased military spending of NATO member states. 🤷🏿

There are other companies that sell weapons of destruction but I wanted to stay true to my moral side of defence and security than offence and annihilation. To each his own. No judgements! 😌😇

Future:

Theon has purchased land against bank borrowings to extend their Greece factory to increase the production and meet the demand. M&A as they say seems to be in the pipeline but I am only counting on the soft order backlog and physical extension of the current production.

Adjacent markets such as law enforcement and security is considered in this year’s report. But I liked that they got orders through exclusive contractors to deliver some products to US Marine Corps. 👌🏿

Overall, I started increasing my position and trying to cap it to the 5% of the portfolio. Let’s see! 😎

#stockcalls #stockpicking #SmallCaps #SmallCapGems

[A A Mannolu @AAMannolu]

@Kreuzmann13 Tails for the win 🏆

[A A Mannolu @AAMannolu]

@SimeonResearch_ Good one! We gotta circle the wagons to let our winners run 💪🏿

[A A Mannolu @AAMannolu]

@EliasNicholas @MiTknlg @kopin @2MC_zierler @DZierler @DanCote303 @jaltucher @OptionObsessed Doesn’t $THEON / $THEON.AS hold majority stake in $KOPN ?

[A A Mannolu @AAMannolu]

Don’t agree on the EU Defence!

EU got a reality check when Trump enforced then 2% budget. It was bound to happen for some time.

Now that has happened, everyone checked themselves that they can’t keep getting away with US only support while using that money to build robust welfare programs.

[A A Mannolu @AAMannolu]

Not bad! 🤓

[A A Mannolu @AAMannolu]

Not a bad start! $SPCX

Looks like the people missed out on the subscriptions are piling up. 🤷🏿

[A A Mannolu @AAMannolu]

😂 this is one funny graph!

@VoronoiApp @VisualCap

[A A Mannolu @AAMannolu]

@unusual_whales Ok Zoomer!

[A A Mannolu @AAMannolu]

@iancassel @PlanetMicroCap So you guys are the bringer of peace?! ✌🏿

[A A Mannolu @AAMannolu]

@SimeonResearch_ @wsb_trades_ And $THEON.AS covers most of them! 💪🏿

[A A Mannolu @AAMannolu]

@ariaradnia Are you buying more?

[A A Mannolu @AAMannolu]

@ariaradnia Bought 2 stocks of it! 😜

[A A Mannolu @AAMannolu]

@SimeonResearch_ What is your typical sizing on your most conviction?

[A A Mannolu @AAMannolu]

Not a bad start! $SPCX

Looks like the people missed out on the subscriptions are piling up. 🤷🏿

[A A Mannolu @AAMannolu]

Looks like it was oversubscribed by retailers alone. $SPCX

[A A Mannolu @AAMannolu]

Looks like it was oversubscribed by retailers alone. $SPCX

[A A Mannolu @AAMannolu]

Here we go! 🫡 @Revolut $SPCX

[A A Mannolu @AAMannolu]

@BoringBiz_ Jokes on you, I got 2 allocated! 😜

[A A Mannolu @AAMannolu]

Why not @RevolutBusiness ?

[@levelsio @levelsio]

I'm pretty excited to move off of Wise Business permanently after realizing I can't just transfer my money out when I need to

They keep my money hostage for 10-14 days at least for a big transfer, like they literally won't transfer my money

I remember when dinosaur banks did this? Like they'd purposely delay transfers or not transfer at all in the weekend to then make money on the interest of it

But now fintechs like Wise have started doing it too?

Obviously you don't want to use fintechs to store lots of money, but sometimes you receive money and you wanna transfer it elsewhere (like your broker) but Wise just delays that entire process by 2 weeks, which is quite mad!

Excited to move to @Stripe Business banking ASAP!

[A A Mannolu @AAMannolu]

@ariaradnia Are you gonna add more?

[A A Mannolu @AAMannolu]

@ariaradnia One thing, it’s free storage ☝️

[A A Mannolu @AAMannolu]

@PenttiJokinen

[A A Mannolu @AAMannolu]

@ariaradnia