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Thursday, 28 April 2016

Foreign Investment Mobile Opportunity



EVERWORKS leverages on foreign small-cap opportunity as there is a noticeable gap where investments into this segment represents little exposure to the investment ecosystem and there is a tendency for it to be underinvested. With historically good returns international small-caps represent a good place to invest as there are better growth opportunities abroad, less covered by analysts and as a result represents more opportunity to discover undiscovered underpriced companies.

There are three primary strategies that we tend to follow:



  1. The first strategy we tend to follow is our want to get to know the companies that we want to invest in. How we discover information in a diluted information space is represented in a few fundamentals that we really like. We have a strong tendency to invest into an industry that is similar to the one that we are currently pursuing as we have strong expertise in the technological engineering departments to identify what are the strengths the company can offer that we might be interested in. We tend to do fundamental research into the market competitiveness situation and talk to people that are knowledgeable in the industry.
  2. Secondly, we follow the future, where at one period of time there was only 500 apps and now some over 500,000 apps available for the iPhone with 3G or 4G data usage expected to increase from 27% to 80% by the end of the decade so we own companies that are innovative to take advantage of the increased demand with ways to meet this through the employment of technological infrastructures and strategies.
  3. Thirdly, we invest in hard performance companies. We look for companies with strong cash flows and positive net working capital before justifying our interest in the target company. Among some of the other areas we look into include low liability commitments and healthy cash flow that is able to repay monthly commitments without the need for separate financing or dependencies.

These represent a general guideline for out foreign investment process but there are variations that may affect our decisions even when the fundamentals above indicate a strong possibility for investment. Amongst some of the major factors that may influence our decision to invest or not to invest represents exchange rate risks, the liquidity of the target company, and the overall economic performance of the country being invested into for the particular industry we are considering.

Within our ability to take advantage of our competitive advantages in our existing business model and infrastructure we are able to identify key areas that our investments lack. We don't necessarily invest for financial gain, but we look towards the benefits those companies can bring to our current environment to strengthen our competitiveness against our current competitors or to strengthen key areas that represent a threat to our business model.

We also consider the opportunity to diversify our gains and strategic ability in key regions to counter movements of our competitors or to take advantage of regulatory environment that promotes our business model.

Foreign investments represent to be an opportunity for us to develop a strong internationally diversified network for mobile related opportunities to expand into and for strengthening our position competitively against our competitors.

For related opportunities or ways to participate in this please feel free to refer to our webpage for products that may be part of an ability to develop a capability for your business to build a sustainable competitive advantage. 





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