The backbone of Azarias Capital’s fundamental analysis is a transparent research process designed to capitalize on the volatile, but what we believe to be predictable, earnings patterns commonly found in SMICROCAP™ companies.

Turnaround Opportunities

We establish positions in companies on the cusp of an earnings recovery. Typical drivers of a recovery are a cyclical upturn in an industry, a new product cycle or a company restructuring (often with new leadership).
The stock of the company under consideration must be significantly undervalued relative to our estimate of its intrinsic value. A typical new position will possess appreciation potential of 50-100% at the time of purchase. We expect our price targets to be realized within three years.
Competitively Stable
We require the companies we purchase to have stable or growing shares of predictable and essential markets. If it is unclear whether or not the company meets that criteria, we consider the investment speculative and outside our discipline.