Darren Sissons
Atlas Copco AB
ATCO.A-ST
TOP PICK
Jun 17, 2022
Looking to capture 10% currency differential and 30% decrease in share price.
Lots of profitable M&A.
Return in equity around 30% with global operations.
Current share price presenting good buying opportunity.
3-5 year hold. He's taking advantage of currency dislocations and valuations in Europe. Asset light. Industrial applications. History shows that if you don't buy on sale, it's a mistake. Tuck-in acquisitions. Very well run. Growing dividend, attractive valuation. Retraced, and could retrace further. Yield is 2.08%.
As a rule, buy it on its native exchange, because the bid-ask spread is tighter due to higher trading volume. An ADR offers less liquidity. Green energy's popularity is a driver for ATCO. He invests in Sweden, but feels neutral about ATCO.