Sometimes we refer to them by comparing them with the story of David against Goliath, to underline the "revenge" of the little ones on the older ones. Let's talk about the "NextGems”, companies that decide to approach the financial markets by undertaking the virtuous path of listing, an expression of entrepreneurial excellence made in Italy but with limited capitalization to date, which may however be at the center of a change of course in the financial markets of Piazza Affari.
Many investors, in fact, after the strong acceleration of large listed companies, are now ready to bet on a "rotation" of portfolios, to the benefit of microcaps. A trend so strong that Virgilio IR and TWIN have decided to bring together investors and small gems of the Stock Exchange in the virtual investors conference “Next Gems”, the first edition of which is planned for the next few years 3 and 4 November.
"On the one hand there are companies, real estate, plants, production, goods or services and on the other there are shares, bonds, funds and other financial instruments", they explain Pietro Barbi of Virgilio IR and Mara Di Giorgio of TWIN, creators of the conference. “In the ideal world, the latter support deserving companies with monetary resources so that they can function, while the latter resort to the financial markets when they need capital to invest and create products and services”.
“However – they continue -, it often happens that in the face of excellent companies, with valuable management and excellent quality results, the financial market is not interested in these entrepreneurial gems due to their small size or poor visibility. From here comes Next Gems, one investor conference to bring together microcap companies listed on the Piazza Affari with financial operators able to seize investment opportunities to support the real economy”.
According to a recent research, listed microcaps should be considered one asset classes apart from, on which to allocate resources, since their quotation triggers virtuous processes of growth and development with an improvement in both economic and income performance. However, often the "weakness" of these companies lies in the lack of visibility towards investors; this is certainly one of the reasons for the great response of small listed companies to the Next Gems call. In fact, 37 companies will participate in the conference, in a valuable dialogue with Italian and international investment funds.
But why invest in one Next Gem, who generally deems itself more “risky” than a big-cap big sister? “There are many reasons – explain Barbi and Di Giorgio – the fact of having fewer bureaucratic aspects to comply with makes them more agile and quick to change, above all in our opinion they will be the fastest to recover when the Italian economy begins the post-Covid recovery phase. Then there is a reason linked to active management: microcaps are rarely covered by analysts and investors, a condition which translates into more opportunities".
“However, it is central – they conclude – that these companies get used to communicate correctly with potential investors, transferring the value of strategies and operations, as well as that they exist Equity research published by brokers and analysts who follow the company on an ongoing and in-depth basis. In this sense, we hope that Next Gems will be an opportunity for constructive discussion for both companies and funds.
The NextGems that will participate are: Alkemy, Arterra Bioscience, Askoll Eva, Borgosesia, CFT, Circle, Costamp Group, Creactives Group, Culti Milano, Cy4gate, Cyberoo, Digital Magics, Digital360, Digitouch, Dominon Hosting Holding, EdiliziAcrobatica, Fenix Entertainment, First Capital, FOS, Friulchem, Gismondi 1754, Go Internet, LVenture Group, Marzocchi Pompe, Matica Fintec, Monnalisa, Neodecortech, Notorious Pictures, Pierrel, PLC, Powersoft, Relatech, Sciuker Frames, Sebino, Shedir Pharma Group, Sourcesense, Unidata.
