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Quick Value #221 - Beaten Up Industrial

Quick Value #221 - Beaten Up Industrial

Weather-dependent manufacturer at "unprecedented lows" with excellent recovery economics

Jun 10, 2024
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Value Don't Lie
Value Don't Lie
Quick Value #221 - Beaten Up Industrial
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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:

  1. 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).

  2. 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.]

  3. 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.

  4. Coverage focus — You’ll see lots of special situations (including virtually every spin-off) and an emphasis on small caps.

  5. 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

6.10.24

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