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3 microcap stocks for a successful summer season: ABC Arbitrage, Xilam and Voyageurs du monde

“The important thing during stock market corrections is to keep value-creating companies and your medium-term investment horizon to take advantage of the future rebound, to continue to diversify your geographical and sectoral risks and to always invest continuously and gradually, in order to smooth market volatility and take advantage of the good performance of equities over the long term. » says Augustin Lecoq, manager of the Mandarine Europe Microcap and Mandarine Global Microcap funds.

As summer approaches, Augustin Lecoq presents three listed French microcap SMEs that evoke the rich variety of this asset class: ABC Arbitrage (finance), Xilam (content, leisure) and Voyageurs du Monde (tourism).

A value that benefits from stock market volatility: ABC Arbitrage

ABC Arbitrage is an unknown company, which has always been profitable since its creation more than 20 years ago. It capitalizes on its historical know-how consisting in exploiting phases of volatility on the equity markets, but also in carrying out arbitrage during M&A operations, two often complementary driving forces.

Structurally, it relies on quality management, invested operationally and financially, a healthy balance sheet and strong cash generation, bringing high dividends. Its business model is therefore highly diversified within a portfolio. At the same time, with the resurgence of market volatility and central banks now more concerned with the fight against inflation than with market volatility, the year 2022 looks promising.

A value that will help children have fun during the holidays and parents to take time out: Xilam

A major player in animation, Xilam is an integrated studio founded in 1999 that creates, produces and distributes original programs in more than 190 countries for children and adults. Xilam’s catalog is broadcast on television, on SVoD streaming platforms including Netflix, Disney+, Amazon and NBC Universal, as well as on AVOD streaming platforms including YouTube and Facebook. Xilam builds real successes every year and capitalizes on powerful historical brands (Oggy and the cockroaches, Zig & Sharko, T’esoù Chicky?…) and new ones (Oggy Oggy in preschool, Mr. Magoo, Karaté Mouton…), which establish and expand an important catalog made up of more than 2,700 episodes and three feature films, including Oscar-nominated J’ai Perdu Mon Corps. By targeting children, Xilam allows platforms to retain subscriptions by involving the family and not just the parents. Animated films for children under seven offer many advantages, especially their universality. Indeed, on this target the tastes are almost similar all over the planet and thus make it possible to easily export its creations. With a growing volume of creations and an ever more complete catalog, Xilam thus feeds the appetite of platforms that are always hungry for quality content and could even one day be ‘swallowed up’ by one of them.

A value to bet on the resumption of authentic travel far from the crowds: Voyageurs du Monde

Finally, traveling, getting back to nature, getting away from the crowds to live a more personal travel experience, taking unique photos to feed your social networks… all of these are assets for Voyageurs du Monde. All the more so with a clientele that has often been able to save over the past two years to afford unique services. Thanks to the aid granted in France to compensate for the pandemic, the SME was able to continue to pay salaries to all their employees around the world and keep their network of specialists intact, unlike many competitors. Committed for more than 10 years, it also stands out by offering full compensation for CO2 emissions related to travel, thanks to its foundation involved in reforestation. The Group is therefore perfectly positioned to make the most of the recovery in tourism and the search for authentic and exceptional holidays. Thanks to recent fundraising, the group also has the capacity to buy out competitors on a global level, and has thus just acquired the leader in rental in Europe.


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