Our small cap stock this week is CLX.

Our small cap stock this week is CTI Logis­tics Lim­it­ed (CLX), who pro­vide trans­port and logis­tics ser­vices around Aus­tralia. 

Some of the rea­sons it is our small cap stock of the week include:

• It’s Perth based and, as we know, WA has been rel­a­tive­ly free from COVID, so Sales are up, prof­its are up, long haul to East­ern states is up.
• The mar­ket cap­i­tal­i­sa­tion is only around $72m, so it’s not huge, but the upside of that is that  it has low bro­ker cov­er­age, so there is no fore­cast intrin­sic val­ue, no fore­cast earn­ings per share, etc — all of which is good for us, because it often means we can find these dia­monds in the rough for the broad­er mar­ket­place picks up on them. 
• The direc­tors hold about 40% of the stock and we like it when the board has skin in the game.
• A low price-to-oper­at­ing cash­flow ratio of 2.32 
• One down­side — finan­cial health has dropped from strong to sat­is­fac­to­ry, but it often oscil­lates, might be sea­son­al.
• Div­i­dend Yield over 4%, which makes it attrac­tive to investors look­ing for high div­i­dends. 
• Con­sis­tent­ly Increas­ing Equi­ty scores a zero over last six halves, but it has been increas­ing over the last 4 halves, which is a strong sign. 
• It has a net equi­ty per share of 1.18, which is high­er than cur­rent share price of 96c — so we can buy it for less than the fire sale price. 
• PE ratio is 8.82, quite low, in fact it is the low­est PE it has had in six report­ing peri­ods.
• Small aver­age dai­ly trans­ac­tion vol­ume of $8K, mak­ing it only suit­able to small­er investors. 
• Qual­i­ty score 83%
• QAV score 0.36.