@wtsimis I know this applies to most small caps and I have holdings in about half of those companies you listed. Thought starter, how do you see the balance between the "news" in quarterly/yearly reports when most of the news (or market sensitive content) is drip-fed as it happens?

This would probably be the cause of the confidence heading into reporting season, but again we will have to see how far the market has extrapolated all of those little updates in relation to the more wholistic reports that we will see shortly. Oh, the fun of investing!

Great point @TImocracy , if i can read into what your saying is that potentially much of the good news is released ahead of time to give confidence to the investment community on the progress of the business.

In the companies i am most bullish about I don't believe they have done this and are more humble so to speak to ensure the results do the talking. This has in turn led to flat SP action (also factors are low liquidity) , hence my optimism.

If i look at Ensurance, AVA Risk and Stealth Global as examples what the half year will confirm if the narrative previously outlined is being delivered and on track.

Margins expansion is key for all three I feel especially when looking ahead.

Ensurance and Stealth have repeatedly talked about margin growth in each of their respective areas in combination with top line growth. ENA 30% plus and Stealth 12% plus EBITDA.

If this occurs or is on track to be achieved in the next 1-3years the opportunities it presents each of them looks positive from a capital allocation perspective.

Whether this be prudent acquisitions or dividends or the paying down of debt.

All three companies have shown to be prudent capital allocators and i really respect that especially when you hear so many companies winding back their workforces as we look ahead.

What are your thoughts ?

I am very curious re ensurance, I want to see the breakout of Australia division post the UK divestment.

I guess I wonder what the private market valuations is, I know Tom said he sold his business below what he could get elsewhere but they only bought TK (his business) for $2.5M in 2021 - this is the all that remains of the business following the sale of the UK business. They've obviously invested a lot into it with new offices/ new insurance lines/underwriters and had some impressive growth but the business would be valued about $11M by the market at current prices (taking out cash). So a rerate would see this increase even further.

I have high hopes for the business moving forwards but the dichotomy there gets me. That said they have all been buying shares on market and the tailwinds with premium hardening etc are certaintly in their favour. Not sure how construction insurance will go next few years too.

@wtsimis Largely thinking along the same lines. It's that Mr. Market problem really. The company can be kicking goals but the market can be offering to buy and sell at silly prices on either end of the spectrum.

The way I feel about it is that I will try my best not to get greedy and dip my toes into new ideas hoping for short-term luck/sentiment-driven changes in share prices and instead wait to see the results in the hope that the market actually overreacts to the downside and gives me an opportunity to concentrate my spare cash into the higher conviction ideas that I have been holding for 2-3 years already.

That being said, I can't seem to shake the psychological spring in my step on days where certain companies have a few really good days in a row despite having no intention to take advantage of the higher prices by selling into it.

@Mujo I get a real sense at Ensurance the motivation and drive to succeed is high in terms of shareholder returns.

The focus on margin and selective nature on what to underwrite was a real highlight for me at the AGM. This is without any new product launches that we will see in 2023.

It's early days but many of my indicators have been ticked in order to allow this thesis to play out.

• Trusted, united group disciplined leadership
• Good capital allocators
• Bottom line focused
• High inside ownership
• Industry outlook positive
• Profitable with the prospect of dividends to come over next 12-24months
• Many ways to win over the next 5 years

Agree @wtsimis with all except for perhaps medium term industry outlook being so rosy. It is a cyliclal industry and it is clearly boom times at the moment and for the near future. The cycles are long (years) and there are also cycles with in business lines. PI is the main source and that is defintely a hard mark presently.

Part of my personal largish postion is Tom, he seems genuine and motivated. Tracking the hires on linkedin they appear to be poaching talent from the majors which is postive.

I do want to see more evidence of capital allocation before making a judgement call. Exiting the UK seemed like a good idea given the price and profitability. It is clear acquisitions are on the cards and if they do raise capital (unlikely granted with their cash hoard anytime soon) I want to see retail shareholders treated fairly and not just placements as in the past. Also don't want them to rush out if that cash burns a hole in their pockets.

I don't want to sound negative as I am postive on the company just there's a bit to prove yet.

I

@Mujo appreciate the balanced view and insight.

Don't disagree with your perspective and as with all investments risk exists.

Lets see how the next 12-24 months unfold.

If Tom and ENA can capitalise on the current period this lays a great foundation for the future in terms of taking more of the writing themselves

Cheers