FAQ


Why is your service free?

Our business model to secure long term returns on investments across a small cohort of quality ASX listed micro-caps.

We publish and share our update articles and research and for free

Companies we are invested in can pay us a fee to publicly share our commentary on how our investment is progressing.

Last Updated: April 2022

Is there a paid service where I can get your update articles before everyone else?

No

Last Updated: March 2021

Common terms used across the website explained:

Portfolio

We have four Portfolios shared on publicly available websites: Next Investors, Catalyst Hunter, Finfeed and Wise-Owl.

Each portfolio is a collection of stocks that S3 Consortium and Associated Entities have researched and invested in. Each stock has engaged our services to publicly share our investment journey.

Associated Entities

S3 CONSORTIUM HOLDINGS PTY LTD <NEXTINVESTORS DOT COM A/C>, S3 Director Damian Hajda’s GLOBAL CONSORTIUM HOLDINGS PTY LTD <FTW HOLDINGS A/C> and S3 Director Jason Price’s OKAWARI CONSORTIUM PTY LTD <THE OKA T A/C>

Investment

Shares Acquired whilst a company is listed, Shares Acquired in pre IPO seed raises, IPOs and issue of shares in lieu of cash payment for services.

Initial Entry Price

The Volume Weighted Average Price (VWAP) for Shares Acquired by S3 Consortium and Associated Entities after 1 Jan 2019 measured from the day that the stock is announced in a Portfolio.

S3 Consortium and our Associated Entities share our Investment journey over time through our public Portfolios. Occasionally we Invest in seed and pre-IPO capital raising which are factored into our Initial Entry Price.

Portfolio Weighting

The individual position size relative to the total Portfolio size, based on the end of day prices. Shares Held are updated at the end of each month.

Shares Held

Total amount of Shares Held by S3 Consortium and Associated Entities in a company. Shares Held are updated at the end of each month.

Last Price

The closing price of the stock the previous day.

Performance from Initial Entry

The % change from the Initial Entry Price (unrealised gain/loss)

Top Slice

Some Shares Disposed since First Coverage Date, but not enough to Free Carry.

Free Carry

Enough Shares Disposed in a company to recoup all Investment amounts in that company, but not enough to Take Profit. All Investments include Initial Investments or Subsequent Investments, plus tax payable on Capital Gains which we standardised at 30% for simplicity.

Take Profit

Further Shares Disposed after Free Carry is achieved to Take Profit.

Initial Investment

The VWAP of the total Investment in a stock by S3 Consortium and Associated Entities - counted at the Date of Initial Coverage, this date can be found on each company’s page.

Subsequent Investment

Any further Investment into a company after the Initial Investment.

Total Holding

Initial Investment + any Subsequent Investment

Shares Disposed

When any Associated Entities sells shares. Any share share sales must be in accordance with our trading policy found here.

Shares Acquired

When S3 Consortium or Associated Entities makes an Investment in a stock

% Sold down

Number of Shares Disposed, shown as a % of the total number of Shares Acquired

Date of Initial Coverage

The date a stock was added to a Portfolio and an Initiation Article was published.

First Coverage Price

The price at the time when an Initiation Article was published.

Highest Price

The highest price of the stock from the Date of Initial Coverage

Highest Point

The % change between Highest Price and Initial Entry Price

Last Updated: April 2022

Whenever I try to buy a stock that you have initiated coverage on it is already up 20-30% what should I do?

We can’t offer personal advice.

We share information about new investments when we make them and our commentary on developments from our existing long term portfolio companies.

Feedback from our readers has been very positive after many of our investments have performed well over the last 12 to 18 months, hence our subscriber list is growing.

We are long term investors who share our commentary on our investments - when we write about one of our investments the share price may or may not rise.

Last Updated: March 2021

Do you have a conflict of interest with the companies that you cover in your reports?

Our business model is an investment fund seeking long term return on investment across a small cohort of quality ASX listed micro-caps. We share our research and commentary for free.

We require that our portfolio companies engage in our investor awareness program to reach new investors for which we charge a fee to cover the cost of our analysts, writers and other operating costs.

As investors who have performed significant due diligence on the companies that we cover, we prefer to take the fee for this investor awareness service in shares in the company, that are subject to escrow and trading blackouts.

Above each investment update on a company we disclaim our holdings in that company. This number is correct as at the time that the investment update is published.

You can read our disclosure policy here: https://nextinvestors.com/disclosure-policy/

Last Updated: April 2022

Do you ever entirely exit positions from your portfolio?

You can see a list of our past investments here:

Last Updated: April 2022

When should I buy or sell a stock?

We can’t offer you personal advice.

We share our own investment philosophy in our "How to make money investing in small cap stocks" eBook.

Please read our financial services guide for more information: https://nextinvestors.com/financial-services-guide/

Last Updated: April 2022

If I give you money, can you invest it on my behalf? Do you have a private fund that I can participate in?

No.

Last Updated: April 2022

Why has <Catalyst Hunter Investors Stock> price declined since I purchased it?

Share prices go up and down which depends on many factors.

Some of our investments spend months below the price where we invested, and some never go back above our investment price. This can and will happen in small cap investing.

As long term investors, we don’t focus on monthly price fluctuations. Our goal is to invest in companies that can achieve a sustained share price re-rating over the medium to long term.

We held all of our portfolio positions through the COVID19 market crash during March 2020 even though the prices all went well below our entry price.

Our performance is shown on our portfolio page.

Last Updated: March 2021

How do I buy the stocks in your portfolio? How do I do this if I am overseas?

There are many online trading platforms available or you can engage the services of a stock broker.

We suggest to consult an advisor before making any investment, and most importantly with in the small cap market, only invest what you are prepared to lose.

Last Updated: March 2021

What is your opinion on <Stock>? Can you take a look at <Stock> and let me know what you think?

We can’t form an opinion or comment on stocks that we don't know about.

It takes us months of research and getting to know management before we are comfortable enough to invest in a new company and write about it publicly.

We are a small team and are very busy analysing potential stocks to invest in, so unfortunately we can’t comment on stocks aside from those that we publicly make available on our website.

Last Updated: March 2021

What is your investment strategy? How do you choose which stocks to add to your portfolio?

  1. Our industry network introduces us to pre-screened investment opportunities.
  2. Our trusted advisors and sector experts help us assess the investment.
  3. We conduct regular meetings with company management to build trust and a relationship.
  4. Our in-house team of analysts conduct due diligence and analysis using our 20 point check list.
  5. Our investment committee makes the final investment decision.
  6. We aim to increase our investment as the company delivers over time.
  7. We aim to hold the full position for at least 12 months and top-slice as the price rises.
  8. We aim for “free carry” within 24 months of investing (free carry means to sell your initial investment $ amount and leave the profit invested for the long term)

    Themes we currently look for (current as at March 2021):
  • Undervalued stocks,
  • Battery metals, (especially in Europe)
  • New Green energy
  • ESG focused companies
  • Some traditional energy

We will generally invest again two or three times after we initiate coverage on a company if they deliver on their promised strategy over time.

Last Updated: March 2021

What is your past track record? Do you only show us your winners, what about stocks that you have lost money on?

You can see our past performance on our portfolio summary page of all the stocks we have invested in under the portfolio business model first introduced in 2019.

Next Investors however has been around since 2013 we have released an "archived articles" feature which shows all of the stocks covered under our old business model.

Last Updated: April 2022

What assurances do readers have that you don't sell your stock right after you do a promotion?

We are long term investors that share our research and commentary. We take months to make sure that each company we invest in has quality management, a top class project and the highest chance to succeed in the long term.

After we invest, we wait for the company to make at least five key announcements as the company executes on its strategy that may lead to improved share price performance. This can take many months or years.

We have strict trading blackouts in place for our fund and every team member when we release commentary on any of our investments.

We also generally enter voluntary escrow agreements to not sell our shares within a certain time frame of investing.

Historically, we have made the best returns carefully researching and choosing only the best companies and holding them over a long term period.

Read our disclosure policy here: https://nextinvestors.com/disclosure-policy/

Last Updated: April 2022

Do you provide BUY, SELL or HOLD recommendations?

We will never issue buy, sell or hold recommendations.

We share our research and commentary on why we have invested with our readers, who then can make their own decisions.

We will write about new investments we make and provide commentary on our existing portfolio companies as they execute on their strategy over time.

Last Updated: March 2021

How much money should I invest in a company?

Any investment decision you make should be based on your own current financial objectives, situation, needs, and risk profile.

Always discuss investment decisions with a professional investment advisor before making a decision.

As a good general rule in the world of ASX small cap speculative investments, you should only invest what you can afford to lose.

Last Updated: March 2021

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