Darren SissonsAtlas Copco ABATCO.A-STTOP PICKSep 29, 2022

Global leader in vacuum technology. Dividend increases annualized over 5 years of 10%, 10 years of 6% -- quite solid. Asset light, so fairly high return metrics. Weak last year on exposure to semiconductor market. 

Will benefit from AI spend. Tuck-in acquisitions. 

Vacuum technology is its core expertise.. It is tied to the semi-conductor sector since production needs clean space. It is the best of breed in its category and probably the best capital goods company in Europe. It is under-priced and somewhat under-covered. He has done well with Swedish companies - management companies tend to be shareholder friendly.

It is in the industrial sector. Although the last quarter was a bit softer there is significant upside.

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.