Pythia's Phoenix Investing Club (Phoenix Investing) 

Direct Public Investing in Multi-Capitalization Companies Using Nature's Complex Intelligence Lens (More Emphasis on SMID Capitalization Companies)

Global, Micro-to-Large Capitalization Equities (Emphasis on Micro-to-Mid Cap):

At Phoenix Investing, we use our extensive experience in the small capitalization investment space and our living complex systems principles to research and make investment recommendations in micro-to-mid-capitalization public companies. 

Using our unique natural intelligence investment principles, we find the diamonds in the rough, misunderstood, oversold, contrarian or off-the-radar global investment opportunities, looking for moonshot or outsourced returns. We work actively with management teams to help them unlock value in ways that are in coherence with our living system investment principles. 

Stock prices can soar or fall quickly in these liminal space days. Investing during these times requires a strong ability to connect the dots in lateral ways which is our core competence. Most investment analysts are very siloed so that is a big advantage for us. We are also very comfortable in risky, volatile areas. We look in unconventional spaces for insights and at many types of reports and data. Fortunately, the days of having to pay millions for fancy investment reports, even quant reports, are coming to an end, leveling the playing field for all kinds of investors. 

The Investment Opportunity 

Global, Micro-to-Large Capitalization Equities:

Many private companies were funded at very high valuations over a long period of time. Many stock prices of recent IPOs are under pressure. Inflation started to climb significantly, so the Federal Reserve raised interest rates at a time where there were numerous interconnected global crises that were also pressuring companies such as figuring out the “new normal” after the pandemic, war in Ukraine, an energy crisis, global geopolitical instability, concern about climate change, intense polarization in global societies, supply chain shortages, food shortages, increased violence, and corruption in many business, scientific, and geopolitical areas.

Valuations in both private companies (outside of the current bubble of the moment AI) and smaller public companies are under pressure, not participating to same degree as large capitalization companies have in the recent rallies. There are large bubbles in many companies across industries that received too much funding during the boom years. After so many years of investors throwing money at popular trends and companies without concern of business model viability, valuation, or execution ability, we are in the beginning stages of a wash out. Some companies will make it, and many will not. Valuations will continue to come down in many overvalued areas in both the private and public markets.

Companies are looking for new ways to raise money and some of them are exploring the public markets, mainly through reverse mergers or merging with SPACs (which was also an area of overfunding, and that money needs to go to work within a certain time frame). Most of these are value traps. There are SEC investigations and some violations of security laws. This was a good example of the madness of the crowds in action as many reputable and good people were swept into this FOMO (Fear of Missing Out) movement. If you are someone that specializes in seeking assets from bankruptcy and feel you can add some value, now might be a time to get creative. There is mainly bottom fisher style predatory money in this world, so just think what could be done with real leadership skills, creative solutions and a desire to enable more phoenixes to rise from the ashes. There are some interesting products, services and technologies caught up in this mania and subsequent dark tower falling moment. 

Also, there is not the institutional know how or support for many micro and small cap companies that there used to be. This space can be highly illiquid and predatory, with many algorithms or internet rumors knocking prices around. The deal terms are often toxic as well which makes it hard to invest in this area.

Nonetheless, Lynn Marie DePippo, our Founder and CEO, has considerable experience in rapidly changing industries, investing in science and technology, and maneuvering through the general ups and downs of the small capitalization public markets.

Some of the companies are early stage but are very interesting. If they find supportive, high-quality investors, they can eventually grow out of this difficult situation. The valuations are quickly becoming much more reasonable in the public markets than they are in the private markets which is really just beginning to deal with the reality of this new environment. 

We look at companies from micro-to-mid capitalization globally and are very theme driven.  All industries are going through a large amount of creative destruction so the long term skills we developed in smaller, high risks areas are very useful now. 

This is not for investors that are afraid of risks, as the aforementioned multiple crises are very real, but the opportunities are also large. There is the potential of earning venture capital type returns in the public markets but over much shorter time frames.

We focus mainly on small-to-mid-capitalization, global public companies across industries, but also include some large capitalization companies. We stick to our living system principles. However, since this is the public investing space and these principles in their entirety reflect a world that really does not exist yet, investors do need to understand this is a journey and not a destination. In general, there is far less greenwashing using these principles as applying natural intelligence tends to be brutally honest. If you use our principles correctly, you can figure out where the corruption is occurring and why. Where companies are weak in certain areas, we highlight it and give support when we can and when the management teams are willing to listen.

We are investors comfortable on the fringe or liminal space to look for new opportunities and new phoenixes to rise from the ashes. Using natural intelligence principles actually helps you find the phoenixes earlier than other people. We leverage our extensive experience and natural intelligence process to connect the dots in unique ways and think systemically. Our process helps to manage risks more proactively. Our process helps investors to think strategically about how to make money by aligning with the mission and purpose of these important companies. That alone separates this group from most investors that invest in smaller public companies. The management teams have a rough time in today's markets, but there are incredible people and ideas mixed in the sea of chaos in the smaller public company area.

We tend to focus on areas of higher risk but also higher reward. Strangely enough, some of the smaller companies in our focus areas have less risk, as they are emergent, less expensive and do not have as much baggage as larger companies that have significant governance issues and have misplaced the trust of global investors. Some small companies are just coming out of a turnaround and others just went public a bit early. Many newly IPO'd companies that were over-funded in herd-like ways by venture capitalists are still value traps, as many do not have a sustainable business model or value proposition. The competition is also fierce as companies were often funded in theme based ways. For the companies that pass our screens, it is harder for them to find high quality investors and that is an opportunity for investors with risk tolerance and integrity. Technology is moving quickly creating opportunities as companies rise and fall with the rapid pace of innovation. There are many opportunities off the radar of most analysts and investors. 

Phoenix Investing Terms and Conditions

Contact Us For More Information on Phoenix Investing and Get a Free Mini-Ebook Called "Permaculture and Investing"

Founder and CEO of Pythia Capital

Lynn Marie DePippo

Founder and CEO of Pythia Capital

[email protected]

www.pythiacap.com

Disclaimer

Confidential © Pythia Capital 2024 All Rights Reserved