David Burrows S&P Global Inc SPGI-N COMMENT Sep 26, 2022

Stock ratings and index compilation.
Will continue to hold.
Recent market selloff tough on company shares.
Expecting shares to recover in 2023.
Strong business model for the long term shareholder.

A good business. Upside angle will come from the resumption of issuance, which has been in the doldrums. This will work as the capital markets recover. 

Financial information services. Highly profitable. Very high margins of 45-46%. Scalable. 72% recurring revenues. Great growth story for the longer term. Yield is 0.95%.

Wonderful business and business economics. Share price has been volatile because a big portion of business comes from bond ratings, and there have been fewer bond issues. Always fairly expensive. Right now 24-25x, fair. Free cashflow used to build out products.

Ratings business dried up last year, as higher interest rates squashed need for new debt. This part of the business is stabilizing. Other divisions doing well. Lots of recurring revenue from subscriptions. Wait for a pullback to add new capital.

Would not worry about share price volatility. Good vehicle if you believe in increased passive investment in ETF's. Good company, but better options for investors out there. 

Take note of its high at the very end of 2021 at $480, and the stock is just below that now. If you want to enter, do it now with a tranche, then add another tranche past $480.

Yesterday, it reported a strong top and bottom line beat and raised their full-year forecast. This quarter deserves more attention as shares are down 5%.

Main business is doing ratings, which is facing a slowdown right now, but starting to see a pickup in capital markets activity. When bonds mature or get renewed, they have to be rated. Also does benchmark indices. Need-to-have information for financial services industry. Very high margins, very scalable, diversified. 70% of revenue is recurring. Acquisition synergies are finally being realized. Yield is 0.83%.

Very high margins, very profitable, recurring revenue. Oligopoly with Moody's. Divisions experiencing good growth. Highly scalable. Well positioned to benefit from increased capital markets activity. Long-term compounder. Yield is 0.7%.