I have created a Google Spreadsheet with these 25 picks, to track the evolution of the prices with the current upside or downside. If you are interested, let me know and I share it with you. Thanks! ^_^
Great write up! I was looking at Victory Square which holds most of Hydreight. It seems like the discount is there because management is continually selling their shares to pay for operations of their company. Also VST keeps diluting their shares, especially with the $10 million recently and it’s every like 6 months. The other companies they have seem to insolvent or frozen like XR Immersive, GameOn is delisted. The only thing they have that has any value seems to be Hydreight.
That is a thoughtful way to frame setup and execution. So often people end up reacting instead of planning and then they wonder why outcomes surprise them.
I write a lot about building process into trading and managing risk without noise at After the Close. If you ever want to take a look and drop a comment on how I think through that process, good or bad, I can take it on the chin. Always good to compare perspectives.
The fair P/E ratio framework is a good anchor. Building every pick around the gap between the current P/E and the systematically derived fair P/E forces discipline. You bake valuation into the process, but also, it still leaves room for momentum and relative strengh to know when the market is finally starting to agree with you.
The massive increase in operating income to CAD 23.9 million in the third quarter of 2026 marks a historic high for the company. The 242% increase over the same quarter last year can be attributed to several converging factors that illustrate the asymmetric leverage of Goldmoney's business model.
A primary driver was the exceptional price performance in the gold market. At the end of 2025 and the beginning of 2026, the price of gold broke through important psychological barriers and reached levels above USD 4,000 per ounce. Since Goldmoney.com charges transaction-based fees on the value of the precious metals traded, a rising price level with consistent volume already leads to a linear increase in revenue. To make matters worse, rising volatility and new price highs tend to fuel customer interest and thus trading volume disproportionately. The company stated that a significant portion of its annual revenue is often generated during periods of high market activity, which was fully reflected in the reporting quarter.
The company's cost structure remained largely stable. Administrative costs did not rise at the same rate as income, resulting in a significant margin expansion. Operating leverage is particularly pronounced at Goldmoney, as the infrastructure for storing CAD 5 billion worth of precious metals is already in place and additional inflows incur only marginal additional costs.
Another key factor in the positive deviation was the contribution of the subsidiary Goldmoney Properties Limited (GPL). The UK-based company generates stable, inflation-protected rental income from a portfolio of over 412,000 square feet of commercial space. Unlike the transaction-based precious metals business, these properties provide predictable cash flows that are often linked to the UK Retail Price Index (RPI). Rent increases of between 1% and 5% per annum are stipulated in the contracts, which provides effective hedging in an inflationary environment. The integration of acquisitions such as the St James Place buildings in Cirencester contributed significantly to operating income.
One-off items and currency effects also played a role in the difference between IFRS net income (CAD 17.85 million) and adjusted net income (CAD 21.41 million). Adjusted earnings exclude, among other things, non-cash revaluations of inventories and effects from stock options. The depreciation of the Canadian dollar against the British pound (GBP) had a positive effect on rental income from the UK real estate division converted into CAD.
Assessment of revenue and margin development
The development is considered highly positive. The combination of 158% revenue growth compared to the previous quarter and an even stronger 224% increase in adjusted net income indicates excellent operational efficiency. The company has proven its ability to quickly monetize market opportunities while securing its long-term substance through real estate investments.
Particularly noteworthy is the growth in tangible equity per share to CAD 14.45. This represents an increase of 10.3% within just one quarter. This metric is central to the valuation of Goldmoney, as it reflects the actual intrinsic value of the assets (gold holdings, real estate, cash reserves) minus debt. Such a significant increase in book value in a single quarter is exceptional for a company in this sector and underscores the value of the business model.
Forecasts and management statement
The management team, led by Roy Sebag, has confirmed its forecasts and strategic direction. It emphasized that the company will continue to seek opportunities to reallocate capital to tangible assets that offer attractive risk-adjusted returns.
Although the company has not published detailed guidance figures for the fourth quarter, market forecasts for gold suggest that the positive trend will continue. Analysts from institutions such as UBS and J.P. Morgan expect the price of gold to rise to $5,000 per ounce by September 2026. Since Goldmoney reacts asymmetrically to rising prices, such a scenario would inevitably lead to further record profits. Management also confirmed the continuation of the share buyback program (NCIB), signaling confidence in the undervaluation of its own stock.
Impact on the share price
In the short term, a further positive reaction in the share price is expected. As the share was trading at around CAD 11.48 at the time of reporting, it is still well below its intrinsic equity value of CAD 14.45. This discount to book value offers a significant margin of safety for investors.
In the medium term, the reduction in outstanding shares through buybacks—a further 222,700 shares were destroyed in the reporting quarter—will further leverage earnings per share. If the market begins to value Goldmoney not only as a precious metals dealer but also as a diversified real asset holding company with stable rental income, a revaluation (rerating) of the P/E ratio is likely. Technical analysis also shows that the stock is trading above its 200-day average, indicating intact momentum.
Wide range e.g. YTD Metals X +156%, Aconnic -55%, Average is 19,74%,
Important is: "During the year, the system constantly checks whether there are currently better stocks on the market. The "bottom performer" at that time is then replaced by the new value."
I have created a Google Spreadsheet with these 25 picks, to track the evolution of the prices with the current upside or downside. If you are interested, let me know and I share it with you. Thanks! ^_^
Hi Raül, thank you. Please share. Regards Paul
Great write up! I was looking at Victory Square which holds most of Hydreight. It seems like the discount is there because management is continually selling their shares to pay for operations of their company. Also VST keeps diluting their shares, especially with the $10 million recently and it’s every like 6 months. The other companies they have seem to insolvent or frozen like XR Immersive, GameOn is delisted. The only thing they have that has any value seems to be Hydreight.
There is discord group about VST - https://discord.gg/9D5MmRAZ . I think you can learn there a lot!
Just joined! Thanks for the link! Where did you find the discord community! I wish my microcaps all had discords 💀
I have a big network which is a great information feed.
It is linked on their website.
I don't think so.
https://victorysquare.com/ If you scroll down there is a huge banner right on the home page.
There's also a small icon link on the bottom-right next to the LinkedIn icon.
The design used to be a bit different a few months ago but it was there back then too.
That is a thoughtful way to frame setup and execution. So often people end up reacting instead of planning and then they wonder why outcomes surprise them.
I write a lot about building process into trading and managing risk without noise at After the Close. If you ever want to take a look and drop a comment on how I think through that process, good or bad, I can take it on the chin. Always good to compare perspectives.
Interesting list I’ll have to check these out. Thank you!
The fair P/E ratio framework is a good anchor. Building every pick around the gap between the current P/E and the systematically derived fair P/E forces discipline. You bake valuation into the process, but also, it still leaves room for momentum and relative strengh to know when the market is finally starting to agree with you.
MTI Wireless Edge Wins New US$2m Defence Antenna Contract, Lifting April Orders to US$8m- https://www.tipranks.com/news/company-announcements/mti-wireless-edge-wins-new-us2m-defence-antenna-contract-lifting-april-orders-to-us8m
🧐 Cyviz AS – Q4 2025 Marks Continued Progress in Strategic Transition -https://www.tradingview.com/news/reuters.com,2026-02-26:newsml_Obi4WFSja:0-cyviz-as-q4-2025-marks-continued-progress-in-strategic-transition/#:~:text=A%20key%20development%20during%202025,%2Dyear%20increase%20of%2034.5%25
Earnings
Pulse Seismic Inc. Reports 2025 Financial Results and Declares Regular and Special Dividends - https://www.globenewswire.com/news-release/2026/02/25/3244192/0/en/Pulse-Seismic-Inc-Reports-2025-Financial-Results-and-Declares-Regular-and-Special-Dividends.html
5N Plus Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results- https://www.5nplus.com/en/news/5n-plus-inc-reports-Q4-and-FY-2025-results/
Top 25 Goldmoney - Goldmoney Inc. Reports Results for the Quarter Ended December 31, 2025 - https://www.newsfilecorp.com/release/282925/Goldmoney-Inc.-Reports-Results-for-the-Quarter-Ended-December-31-2025
Analysis of quarterly results
Analysis of variances and operating drivers
The massive increase in operating income to CAD 23.9 million in the third quarter of 2026 marks a historic high for the company. The 242% increase over the same quarter last year can be attributed to several converging factors that illustrate the asymmetric leverage of Goldmoney's business model.
A primary driver was the exceptional price performance in the gold market. At the end of 2025 and the beginning of 2026, the price of gold broke through important psychological barriers and reached levels above USD 4,000 per ounce. Since Goldmoney.com charges transaction-based fees on the value of the precious metals traded, a rising price level with consistent volume already leads to a linear increase in revenue. To make matters worse, rising volatility and new price highs tend to fuel customer interest and thus trading volume disproportionately. The company stated that a significant portion of its annual revenue is often generated during periods of high market activity, which was fully reflected in the reporting quarter.
The company's cost structure remained largely stable. Administrative costs did not rise at the same rate as income, resulting in a significant margin expansion. Operating leverage is particularly pronounced at Goldmoney, as the infrastructure for storing CAD 5 billion worth of precious metals is already in place and additional inflows incur only marginal additional costs.
Another key factor in the positive deviation was the contribution of the subsidiary Goldmoney Properties Limited (GPL). The UK-based company generates stable, inflation-protected rental income from a portfolio of over 412,000 square feet of commercial space. Unlike the transaction-based precious metals business, these properties provide predictable cash flows that are often linked to the UK Retail Price Index (RPI). Rent increases of between 1% and 5% per annum are stipulated in the contracts, which provides effective hedging in an inflationary environment. The integration of acquisitions such as the St James Place buildings in Cirencester contributed significantly to operating income.
One-off items and currency effects also played a role in the difference between IFRS net income (CAD 17.85 million) and adjusted net income (CAD 21.41 million). Adjusted earnings exclude, among other things, non-cash revaluations of inventories and effects from stock options. The depreciation of the Canadian dollar against the British pound (GBP) had a positive effect on rental income from the UK real estate division converted into CAD.
Assessment of revenue and margin development
The development is considered highly positive. The combination of 158% revenue growth compared to the previous quarter and an even stronger 224% increase in adjusted net income indicates excellent operational efficiency. The company has proven its ability to quickly monetize market opportunities while securing its long-term substance through real estate investments.
Particularly noteworthy is the growth in tangible equity per share to CAD 14.45. This represents an increase of 10.3% within just one quarter. This metric is central to the valuation of Goldmoney, as it reflects the actual intrinsic value of the assets (gold holdings, real estate, cash reserves) minus debt. Such a significant increase in book value in a single quarter is exceptional for a company in this sector and underscores the value of the business model.
Forecasts and management statement
The management team, led by Roy Sebag, has confirmed its forecasts and strategic direction. It emphasized that the company will continue to seek opportunities to reallocate capital to tangible assets that offer attractive risk-adjusted returns.
Although the company has not published detailed guidance figures for the fourth quarter, market forecasts for gold suggest that the positive trend will continue. Analysts from institutions such as UBS and J.P. Morgan expect the price of gold to rise to $5,000 per ounce by September 2026. Since Goldmoney reacts asymmetrically to rising prices, such a scenario would inevitably lead to further record profits. Management also confirmed the continuation of the share buyback program (NCIB), signaling confidence in the undervaluation of its own stock.
Impact on the share price
In the short term, a further positive reaction in the share price is expected. As the share was trading at around CAD 11.48 at the time of reporting, it is still well below its intrinsic equity value of CAD 14.45. This discount to book value offers a significant margin of safety for investors.
In the medium term, the reduction in outstanding shares through buybacks—a further 222,700 shares were destroyed in the reporting quarter—will further leverage earnings per share. If the market begins to value Goldmoney not only as a precious metals dealer but also as a diversified real asset holding company with stable rental income, a revaluation (rerating) of the P/E ratio is likely. Technical analysis also shows that the stock is trading above its 200-day average, indicating intact momentum.
How did the 2025 list turn out ?
Can we do a white paper on it?
These are the best 25 stocks I could find in the combination of Value and Momentum. Value is measured in:
Revenue growth
EBITDA growth
Profit growth
Dividend yield
FCF margin (free cash flow margin)
P/E ratio
Enterprise value/EBITDA
Price/book value ratio
Price potential (derived from the “fair P/E ratio”)
and
Momentum in relative strength.
Thanks for the shorthand on the param.
I meant, How did the stock recommendations from Dec 2024 list fair out.
Wide range e.g. YTD Metals X +156%, Aconnic -55%, Average is 19,74%,
Important is: "During the year, the system constantly checks whether there are currently better stocks on the market. The "bottom performer" at that time is then replaced by the new value."
Appreciate the follow through,
Hydreight Technologies is a good one from the current list, getting it in my kitty.
Is there an updated discord link for Victory Square? the one in the comments seems to be expired now. Much appreciated!
https://discord.gg/M3qHphVm
Thanks for your list! Did you sell Centrotherm? I trimmed a lot between €8 and €10. Don't know what could be the price of the squeeze-out.
Sold Centrotherm with a nice gain. Squeeze-out can take soome time.
Thanks!