illumin Holdings Inc T.ILLM

A Peter Lynch Stock

[Torontojay]

Acuityads is a stock pick I believe Peter Lynch would have loved. You can see how Acuityads passes the Peter Lynch test. 

1) Earnings are growing faster than its PE ratio - check 
2) No customer accounts for more than 10 % of sales - check 
3) The company has very little debt -check 
4) The company has cash over debt - check 
5) The company has fewer than 20% institutional investors -check
6) Insiders own a lot of stock -check 
7) Executives pay themselves a modest salary- check 
8) Easy to understand business? Hmmm, maybe not :) 
9) Small cap - check 
10) Fast growing company growing earnings by 20-30% per year -check 

The only thing that prevents it from being the perfect stock is that Peter Lynch preferred companies in a no- growth industry. This would attract less competition. The programmatic world is far from being a no growth industry. On the other hand, Acuity has built a niche around its technological platform that guards itself from competition. It's self serve platform has high barriers to entry as it would take years and industry experience to replicate what they have done. 

My favourite investor is Peter Lynch. His style of investing is timeless and can still be used in today's markets. He favours companies that are growing faster than its PE ratio which is mathematically sound advice. I believe Acuityads represents the almost "perfect" Peter Lynch stock.

[ace1mccoy]

Tjay , can you name the book title ? I'm always interested in a recreational read to enjoy. 

[Torontojay]

  My favourite book is One Up On Wallstreet. It's such a classic book and although I've read many investment books, this one has had the biggest impact. Let's just say his advice has paid the cost of this book many times over!  Learn to Earn is another good one.     

[SmallCapTechGuy]

Another book I've enjoyed reading and re-reading is "100 Baggers" by Christopher Mayer. Great insight and examples GLTA

[Dara7Dara]

I love the Mayer book and the reasoning contained in it is the reason I have invested heavily in three companies that I think will become massive capital compounders in the next 3-5 years. 1. ATY (baby brother to TTD - it really is)  2. Adcore  3. Wishpond (baby brother to HUB - people have not figured this out yet) All three quite undervalued yet experiencing exponential growth. Did

[Torontojay]

Thank you for the suggestion. I never read the book but I heard it's a good one.  Btw, it was Peter Lynch that coined the term 10-bagger from his "One Up On Wallstreet" book.   

[Dara7Dara]

I have not read Lynch's1989 book (yet) but I heard he coined the term 10 bagger (as a reference to baseball). Christopher Mayer wrote his 100 Bagger book a couple decades later in 2015 It is a very enjoyable study that built upon the empirical research of an investment manager from Boston named Thomas Phelps who in 1972 wrote a book (a hidden classic) called '100 to 1 in the Stock Market

[Torontojay]

Ty Dara for the link to this book!   

[ace1mccoy]

So , here I am browsing through and find that Dara has supplied a free link to the book!  Thumbs up Buddy !