Our Equity Research activities had just been baptized in 2009, when we discovered high untapped potential in a small Munich-based IT service provider by the name of CANCOM. Treated less than loved and outcast as a black sheep by investors, CANCOM generated € 400m in revenues with a market capitalization of only € 70m at the time.
Nonetheless, the market was unfair towards CANCOM. In calculated timing, the company released its first proprietary Private Cloud Solution to a South-German Automotive OEM, who immediately generated higher Returns on Investment on account of the significant IT efficiency gains. Such differentiated, highly profitable Cloud Solutions were the key to CANCOM’s future success!
Our ambitions were sparked, and our passion too; for we like nothing more than to develop, optimize, and market underrated and misunderstood equity stories.
What follows is a success story unparalleled and unmatched. Shortly after our initiation study the share price doubled, four years later the share price quadrupled, and today with revenues and a market cap over € 1.5bn, it is hard to imagine the TecDAX without CANCOM. In the time elapsed, from we would not only successfully place shares for the founders and management from time to time, but also execute two capital increases with a total volume of over € 100m in order to finance further acquisitions. These transactions witnessed tremendous demand on account of our ability to ignite our vast international network and convince them of the dormant potential that lay within CANCOM.
It is for this reason that today, that not only CANCOM, but also our institutional investors, are floating on cloud nine!