Revealing My New Largest Stock Position

Daniel Pronk•Jun 12, 2026

Summary

Daniel presents Tasmea (TA.AX) as his new largest portfolio position, a stock he has owned for over a year but is only now discussing due to significant interest. He emphasizes that despite the stock being up over 100% in the past year and hitting all-time highs, he still believes it is undervalued and continues to buy shares.

Tasmea's historical business involves providing maintenance, repair, and upgrade services for massive equipment in mining operations, offering recurring revenues from essential maintenance. This model allows mining companies to outsource specialized labor needs rather than hiring full-time staff for seasonal or project-based work. The company operates 27 different companies under a decentralized business model, with many still founder-led.

Key growth drivers and investment thesis points for Tasmea include:

**Electrification Revolution in Australia:** Tasmea has been acquiring electrical businesses exposed to Australia's massive investment in electrifying and expanding its grid, as well as battery storage.

**Data Center Buildout:** Tasmea recently acquired one of Australia's leading data center construction companies, the Maxim Group. Australia's data center sector is projected for significant growth, with major commitments from companies like Google, Microsoft, and Amazon. This acquisition immediately adds 31% to proforma EPS for fiscal year 2026 and provides exposure to an industry projected to grow 21% annually to 2030.

**Organic and Acquisition Growth:** Tasmea projects 15% organic growth annually, historically beating this target. Their acquisition strategy focuses on buying number one or two operators in their region at fair market value, ensuring immediate earnings per share accretion. The Maxim Group, for example, has grown 70% per year organically.

**Strong Financial Performance:** Since fiscal year 2021, Tasmea has compounded revenue, proforma EBIT, and proforma earnings by 34% annually. For fiscal year 2026, after the Maxim acquisition, proforma earnings are projected to be up over 70% year-over-year.

**Insider Alignment:** Insiders own about 60% of the company, have never sold a single share, and continually buy more on the open market, indicating strong conviction in the business's long-term prospects.

**Valuation:** Daniel argues Tasmea is still undervalued, trading at approximately 22 times trailing 12-month earnings (based on $8.59 stock price and $0.39 EPS for FY2026). Factoring in conservative 15% organic growth, the forward P/E for FY2027 would be around 19.1x, or 18.3x with a more realistic 20% EPS growth. He notes competitors trade at P/E multiples well above 20 and even into 25, suggesting Tasmea trades at a discount despite superior growth and margins.

Daniel highlights that the stock's recent jump following the Maxim acquisition, while seemingly making it more expensive, actually compressed its valuation multiple because the earnings per share accretion (31%) was greater than the stock price increase (15%). He personally bought shares in the $7.50 to $8 range and continued buying after the Maxim acquisition announcement.

Mentioned Stocks

TA.AX

Sentiment: BUYAction: BOUGHT

Reasoning: Daniel views Tasmea (TA.AX) as his largest and a highly undervalued position, despite its stock price being up over 100% in the past year. He explicitly states that he has been buying a lot of the stock in the $7.50 to $8 range and continued to buy more after the recent Maxim acquisition was announced. His conviction stems from several factors: 1. **Strong Growth & Strategic Acquisitions:** Tasmea has a robust legacy business in critical maintenance for mining, but is strategically expanding into high-growth sectors through acquisitions. These include companies exposed to Australia's 'electrification revolution' (grid expansion, batteries) and the booming data center market. The recent acquisition of Maxim Group, a leading data center builder, is expected to add 31% to proforma EPS for fiscal year 2026, with Maxim itself growing at 70% per year. 2. **Impressive Financials:** The company has compounded revenue and proforma earnings by 34% annually since fiscal year 2021. For fiscal year 2026, proforma earnings are projected to be up over 70% year-over-year. Management also guides for 15% annual organic growth, which they historically exceed. 3. **Insider Alignment & Management Quality:** Insiders own 60% of the company, have never sold a share, and consistently buy more on the open market, demonstrating strong belief in the company's future. Daniel praises the management team's track record of acquiring businesses at fair prices that are immediately earnings-per-share accretive. 4. **Undervalued Relative to Peers and Growth:** Daniel calculates Tasmea's trailing 12-month P/E ratio at approximately 22x (based on current price around $8.59 and FY2026 EPS guidance of $0.39). He projects a forward P/E for FY2027 to be around 19.1x with 15% growth, or 18.3x with 20% growth. He argues this is very cheap for a company consistently growing over 20-30% annually, especially when its competitors trade at P/E multiples well above 20 and even into 25. He noted that the stock was trading for the lowest P/E ratio among its peers despite having the highest margins and fastest growth. Furthermore, the Maxim acquisition, while increasing the stock price by ~15%, actually compressed the valuation multiple due to the larger 31% EPS accretion, making the stock 'cheaper' on a multiple basis post-acquisition.

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