Q4 Screen for attractive Polish stocks

Poland is a great place for hunting micro-caps. Today, we will not go in large depth on individual companies, but we will overlook this hunting ground for potential multi-bagger candidates, taking 5 steps:

1. Narrow down for what we are looking for quantitatively

2. Remove several groups of stocks for Qualitative reasons

3. Add back amazing growth stocks even if P/E or ROE doesn’t fit yet

4. Show the 16 most interesting Polish stocks for the moment

5. Review the most interesting 10 in a preliminary 1 page pitch

Poland is a great place for investing, because it has an amazing economy, a low cost of being public (resulting in a high amount of companies) and valuations are low as international investors are only just finding their way to the country.

There’s over 700 listed companies in Poland. I include only 545 today, having removed some “blacklisted” companies like CDA and Gamivo.

Just under 300 of these are profitable. Most are small-caps:

Filtering out the more expensive ones (P/E >15), and focusing on the growth companies, 31 remain:

I then removed the cyclicals, gaming companies, too hard to understand businesses, too illiquid companies, too lumpy companies… all to check if we can find some cheap, growing easy to understand businesses in this big sea of Polish stocks…

By the way here are some “too illiquid companies” I removed:
DGA, Mostozal plock, Eco5tech, Ampli, Effect capital group, Ultimate games Hub tech, G-energy, Quantum RRH, Verbum, Talex, ATM grupa, Genomed, Examobile, Sakana, Editel, Ekipa, Kancelaria, Prawna-Inkaso, Monnari, Otmuchow, Aqua.

What remained was 13 growing, cheap, liquid companies I think are interesting to consider investing in:

While researching, I like to look at the longer term success of each of these, as a pragmatic way to avoid one-hit wonders and find something durable that will do well for a long time, but is currently undervalued.

This is why I put together a longer term Revenue and Profit chart for the ones I found most interesting here, and some comments on what I found one each of them:

This is the start of research, so as always take it with a grain of salt. I will get back with a longer pitch (as done in Feb 2025 for BSH) on any I like in particular as my research progresses.

Here’s the 11 I like, in the order of how well I know them. I didn’t include Oponeo and Mostozal Zabre here because I don’t know them well enough yet.

As my research progresses, I may buy/sell some of them. If you like any in particular or have questions, let me know in the chat/Discord.

1. Atrem

2. BSH

3. Quercus

4. LSI Software

5. Kruk

6. Madkom

7. 7Fit

8. Helio

9. Sevenet

10. Spyrosoft

11. Vindexus

The Polish indexes are up ~40% year on year and are continuing to make new highs in the middle of the Iran conflict. Looks like this was a good country to look at years ago, and I think it still remains interesting.

I hope you enjoy checking out some of these companies, and possibly thinking about whether any of these meet your personal investment profile and objectives.

Disclosure: I own some of these as disclosed.

Disclaimer: This is not investment advice. Before investing, validate the data within the companies audited reports, and speak to an advisor.

Thank you