Talk Ya Book: A growth stock for your list
Gary Rollo joined Chris Judd’s Talk Ya Book to discuss one of his favourite value picks at the moment, telecom software business Symbio Holdings (ASX:SYM). Symbio is profitable, growing, generates cash flows and is also on 9 times EBITDA which for an industrial stock is cheaper than the market.
The Montgomery Small Companies Fund owns shares in Symbio. This video was prepared 09 August 2022 with the information we have today, and our view may change. It does not constitute formal advice or professional investment advice. If you wish to trade Symbio you should seek financial advice.
Gary Rollo is the Portfolio Manager of the Montgomery Small Companies Fund. Gary joined Montgomery in August 2019 after spending three years at MHOR Asset Management in Sydney as a Founder and Portfolio Manager. Prior to this, Gary was a Portfolio Manager at Renaissance Asset Manager in Sydney for six years. Before moving to Australia, Gary spent five years in London running Morgan Stanley’s Technology Sector Equity Research Team, as well as two years covering technology companies for JP Morgan.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
David
:
Hello Gary: I am a long term holder of Sym (since 2015), and thus have seen its shares up and down in price, but I was never too concerned as I too have always seen it as an innovative little company with a great future, backed up with sound financial management (good cash flow and balance sheet). However, Sym share price has been wilting all year, with the market presumably having doubts about the chances of its execution success, in Asia especially. Then today a negative update sent it down another whopping 38%. I know its tech and tech is out of favour, and price is not the same as value. Is this latest report an indication that prospects have changed, or is this just a temporary setback? Would appreciate your feedback.
Guest Author
:
Thanks David, I understand Gary has been in touch.
Gary Brazenor
:
What are your thoughts on Symbio? Dropped almost 20% in the last few weeks.
Gary Rollo
:
Gary, thanks for your question. Since I recorded this video and wrote up a Blog (https://rogermontgomery.com/dirty-little-thing-called-growth-and-why-i-think-symbio-is-good-value/), SYM has reported F22 results and provided a detailed cost and profit outlook for F23, there were no unexpected items in there. SYM also re-iterated its long term target of 100mn phone numbers on its network (by 2030) from c 7mn today, and its plans to operate in both Singapore and Malaysia this year. That’s the fundamental update, to hopefully what was clear from the video (and the blog) in terms of SYM’s opportunity and strategy to pursue it. Gary