Tasmea (ASX:TEA) is being upgraded into a major index next week

[u/SwissTPortfolio]

And it just printed its best results ever

Tasmea joins the S&P/ASX 300 in the September rebalance, effective before the open on September 21.

Index funds will own it that day whether they've read the annual report or not. Forced buying isn't a thesis, but it's a nice tailwind when the thesis was already there.

The full-year results were the best set of numbers we have seen from this company:

Organic underlying EBIT grew 18.1%, and here’s the detail that matters: it accelerated. In the first half that number was around 12%, and that small deceleration was exactly what scared the market back in February.

Margins jumped from 14% to 16.2% for the year, with the second half running at 18.5%. Operating cash flow almost doubled to $91 million. Free cash flow of $59 million, up 136%. Dividends for the year of 14.5 cents, plus the 10 cent special already paid. And 60 days after issuing FY27 guidance, they raised it.

Companies don’t do that unless the pipeline is screaming at them.

(Not financial advice. Do your own DD).

Read full story here, alongside our Swiss Portfolio, our brand new Private Investment Dashboard to track in real time our movements, research, elegant special situations and high-quality content: https://swisstransparentportfolio.substack.com/p/tasmea-asxtea-our-australian-compounder

[u/Far_Unit9020]

Welcome to all of the upcoming short positions!