For those interested in their deep value stocks, this is a small article I've written about an interesting nanocap listed on Nasdaq called Onfolio Holdings.
Executive Summary
- Onfolio Holdings trades on the Nasdaq under the ticker ONFO. It’s a tiny under-the-radar company with a market cap of $8.23m.
- ONFO buy small profitable cash flowing online businesses such as WordPress plugins, content sites, marketing service companies, and small display advertising brands.
- At time of writing their market cap is roughly the same as the cash they have in the bank. They are trading well below net asset value.
- As more investors learn about the company, and overall market sentiment improves, the discount to net asset value should close. This provides a near term +65% upside.
- Over a longer time frame it could become a multi-bagger if they can successfully execute an acquisition strategy within the very fragmented space of small online businesses.
Introduction
Onfolio Holdings is engaged in fully acquiring profitable websites and apps, and then growing the traffic and profit.
They also take stakes in online businesses (joint ventures), and manage websites for third parties, of which they receive a monthly management fee plus a percentage of revenue generated from the site.
However, the main focus post IPO is to buy and grow its own portfolio of online businesses, and eventually to transition into a fully decentralised serial acquirer.
The full article is too long to post, but you can read the rest here if interested.
https://www.capitalemployed.co...
Thanks.
