Quick Value #221 - Beaten Up Industrial
Weather-dependent manufacturer at "unprecedented lows" with excellent recovery economics
Welcome to Quick Value
Every few weeks I’ll repost this reminder on what Quick Value is all about… Each week I’ll cover a new value investment idea in a Quick Value review. Here’s the scoop:
Idea generation — The goal is to keep the new idea process churning by working the watchlist. These are meant to be a jumping off point for deeper research (i.e. a surface level review).
Format — I stick to a format similar to Steinhardt’s 4 questions: what they do, why it’s interesting, and what it’s worth. [Technically, Steinhardt’s were: the idea, consensus view, variant perception, and catalyst.]
Weekly posts — Covers 1 new idea each week and rotates between free and premium posts. Premium posts lean toward micro/small caps and special sits.
Coverage focus — You’ll see lots of special situations (including virtually every spin-off) and an emphasis on small caps.
Past ideas — Check out past ideas here to get a feel for what’s been covered.
Today’s idea:
Beaten up industrial / manufacturer — shares down >50% since 2019
Market leader in uncorrelated industry to broader economy
Industry at unprecedented lows (heavily weather dependent)
Shares trading at 10x EBITDA / 17x earnings despite industry performance
Capital allocation favors dividends (~5% yield)
Sign up below for access to all posts and monthly updates + occasional deep dives. Premium posts mostly cover “top of the pile” ideas that are either microcaps or special situations.
Market Performance
