(Please note I have a long position in Property Franchise (LON:TPFG))
Remember Brexit? Life seemed so much simpler back then.
To the 2020 stock market investor, robust business models and strong balance sheets reign supreme. Financially sound, high quality operators should be able to withstand the storm and be better positioned to pick up the pieces, once all is said and done.
I would argue that Property Franchise (LON:TPFG) is one such safe, high quality operator that has a fair chance of emerging from this lockdown in a position of relative strength.
TPFG operates a franchise model focused on residential lettings and property management services. There are similar listed operations – such as M Winkworth and Belvoir Group – all of them small and illiquid but looking like good value on the face of it.
TPFG is on my mind because it updated the market on its full year results a couple of days ago. I consider these results below.
Small, cash-generative companies with growing recurring revenue streams, long histories of above average returns on capital, and plenty of growth opportunities in fragmented markets usually trade at a punchy share price premium.
Not so with TPFG. This micro-cap Super Stock…
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