Calnex Solutions PLC (CLX.L)

Has few recurring revenues. They sell telecom testing equipment, a lumpy business now. His patience is wearing thin. It lacks recurring revenues, though has no debt. Are suffering a capex recession that's lasted 2-3 years.

A business in his stable of 28 that's trading at a favourable price. Scottish-based. Tests telecom equipment. Downturn in telecom capex spending, but we're going to be downloading more data and doing more stuff via the internet. Note that it is a cyclical business, but this short-term headwind has created a strong buying opportunity. (Price target in pounds.) Yield is 1.74%.

Scott based company that builds testing equipment in telecom business. Not recurring revenue - hard on bottom line at times. Founder led/owned - strong management. Has been buying shares on price weakness. Once telecom spending recovers - company share price will appreciate. Good business for long term investors. 

Cyclical. A 1.5% weight for him, and he'd recommend investors adopt a similarly small position. Capex budgets for telecoms and such have been pinched during this time of elevated interest rates. Long-term tailwinds of going from 4G to 5G to 6G. Compelling value.

High margin business with low capital requirements. Telecom equipment demand not slowing down. Current share price presenting good buying opportunity. Business fundamentals very strong. Excellent management team. Small company, so size position accordingly. Founder led and owned. No deb. Will own business as long as possible. Good for long term investors. 

Recurring revenue very strong.
High demand in North America for data services hardware.
Cyclical nature of business not a concern.
No debt company that is founder led & owned.