Jeffrey F. Olin
Americold Realty
COLD-N
TOP PICK
Jan 15, 2020
In industrial real estate, a great space, but also in a protected niche--refrigerated warehouses. Difficult to build these, so this limits competition. They benefit from growing demand for fresh food and ready to eat food. Fine managers. Valus will rise in this space, and there'll be a secular re-rating as investors recognize COLD's niche. High growth ahead. (Analysts’ price target is $40.06)
They own chilled warehouses, the biggest player in this space. Given consumers' food tastes (fresh foods), this will attract market demand. There's been a recent pullback in COLD, so now is a good entry point. (Analysts’ price target is $40.58)
(A Top Pick Jul 31/19, Up 7%) Few real estate stocks have a moat, and this does. They are the biggest player in temperature-controlled warehouses worldwide. Great managers. It's still early, so there's room to run. Still likes it. Also a top pick.
(A Top Pick Nov 04/19, Down 16%) He continues to own it. He believed there would be quarterly volatility. There are peaks a valleys throughout the year. He has been aggressive buyers recently.
(A Top Pick Nov 04/19, Down 7%) COLD specializes in frozen warehouse storage, a very defensive asset class with growth. They have a good moat. COLD is the largest player in this space. There's a mismatch in valuation in the private market; these buildings trade at a discount to industrial assets. The spread is too wide. During the pandemic, it was defensive. He still likes it. There is an opportunity for them to store vaccines. Still likes it.
Temperature-controlled warehouses are an integral part of the food chain connecting producers and retailers to the consumer. Defensive cashflows, structural tailwinds. High demand sector. E-commerce potential. Seasoned management. Share price attractive, significant discount to peers but with secure growth. Yield is 2.49%. (Analysts’ price target is $41.67)
Cold Storage in the US. A leader. An integral part of the food chain. He thinks this is a great business. They have had a lot of difficulty recently on the expense side. Many of the suppliers are running through the safety stock and not replenishing supplies. This is a very labour-intestive business. We are getting very close to the bottom and he thinks it is probably a good buying opportunity.
In refrigerated warehouse space. Held substantial amount of shares two years ago but has sold. There are declining earnings affected by rising labour costs and supply chain problems.
In industrial real estate, a great space, but also in a protected niche--refrigerated warehouses. Difficult to build these, so this limits competition. They benefit from growing demand for fresh food and ready to eat food. Fine managers. Valus will rise in this space, and there'll be a secular re-rating as investors recognize COLD's niche. High growth ahead. (Analysts’ price target is $40.06)