I ended up selling the Tamtron shares in my portfolio. I first bought the stock after the IPO, around the time of the Lahti Precision acquisition. Back then, I thought this was an interesting B2B product company in a niche market with a steady service business. The management is also well-incentivized through share ownership. Despite that, the company hasn’t really gone anywhere, at least in terms of earnings, and that is reflected in the share price.
I understand, of course, that small caps have had a tough time over the past few years. Still, my expectations for the company’s performance were higher. My doubts rose from the guidance misses. Even though they were small misses, they still don’t strengthen confidence in the company. The first dividend in the company’s listed history this spring was the final straw for me. Somehow, it signaled a change in the investment story. I would have preferred to use the money for inorganic growth in a fragmented industry. I’ll continue to follow Tamtron’s story from the sidelines. Perhaps I’ll return as an owner in the future if the performance looks more convincing.