Q: Olympia is currently on a run (no complaints); any idea why ? Do you think its justified ? Thank you.
5i Research Answer:
With its involvement in FX and payment services, the recent ramp up could be investor speculation around stablecoin involvement, but it is also a very small ($290M market cap) name, with a decently cheap valuation (13.4X forward earnings) and it can move fast due to its illiquidity. An insider purchased shares in early June. Its overall momentum has also been up and to the right for the past few years, and since it traded sideways for much of 2024 to now, this move could be just resolving over 12 months worth of price consolidation. We think its valuation is still reasonable, its margins are increasing, and we think it looks interesting here.