Great piece, thanks. I haven’t looked at this in years. How do you feel about the risk/reward? Reads to me like a low-teens compounder (low single digit growth plus high single digit fcf yield) in a business-as-usual scenario, but with a risk that they can’t compete in an EV/AV world. Is that right? And is there a “blue sky” scenario where returns are better than low teens, to offset the risk scenario? Thanks!
Great piece, thanks. I haven’t looked at this in years. How do you feel about the risk/reward? Reads to me like a low-teens compounder (low single digit growth plus high single digit fcf yield) in a business-as-usual scenario, but with a risk that they can’t compete in an EV/AV world. Is that right? And is there a “blue sky” scenario where returns are better than low teens, to offset the risk scenario? Thanks!
At $117/share, I’m not a big fan… but I like the business, setup, and management seems legit (#’s are very clean).
It’s sitting on my watchlist and I’d be a buyer somewhere in the $90’s.
r/r looks close to 1:1 here
Good points on both EV/AV tail risks (prob a driving force behind the acquisition?). Def some upside optionality if core ALSN markets recover.
Makes sense. Thanks.