- Page 3/3
- Next Page
Fast food is cyclical based on gas prices. Restaurant sales took off when gas prices plunged in 2014. Also, restaurant haven't seen earnings growth vs. other consumer discretionary spaces. He doesn't see a catalyst for this stock to
improve. That said, it's had a good, long history and their foreign sales are a tailwind.
He won't comment on this company, but the space instead. In the private equity industry, the best time to buy assets is during economic distress when they're cheap. Those assets go into the company's funds and rise in value. The best times to buy PE companies is during pullbacks like 2008-9 and 2011 which then benefitted from the recoveries. Also, credit spreads are narrow now and if they widen that becomes a problem, because these companies borrow to finance their purchases. He's not involved in private equity.
(Past Top Pick, Aug.14, 2017, Up 47%) It's the old Hewlett-Packard instrumentation business to test defence electronics. It's beneftting from increasing defence budgets. They've also invested in testing 5G wireless networks, and 5G is gradually rolling it, so they're starting to receive those revenues. He foresees 20% operating profit margins.
It's a telecom, which is the worst industry to ever invest in. Telecoms are being swept into the new communication industry which will also include media, cable and internet search. The telecom industry will cease to exist. He's not intersted in telecoms at all. It's crazy. He once paid for long-distance calls; now, they're giving away long-distance calls. Stay far away from this. If you want a dividend, look for a company that's growing its dividend.
He sold in 2014-5. The bank was working off the bad loan book and releasing capital, and selling off bad loans. They hoping to return their book of business back to growth. Because they'd underwritten most UK mortgages, they hopes that by cross-selling they could grow their share. That didn't work, so he exited.
A Swiss specialty chemical company that makes cement strengtheners, membranes to waterpoof (green) buildings, and heavily in sealants and adhesives, the latter of which is growing stronagly. Return on invested capital is over 20%. It's been growing around 8-9%. Strong management team. (Analysts' price target: 155.88 CHF)
A tech company that detects very low levels of light and ionizing radation. Applications are in gene sequencer, blood analyzer, and semiconductor inspections. They are the only producer in the Western world. Ionizing applications: drilling and exploration for natural resources. They enable a lot of cutting-edge technologies. Returns on invested capital are nearly 30%. 20% profit margins. 10% R&D to sales. (Analysts' price target: Y5,020)
He's watching it. On their conference call Q1 there was a major misunderstanding about the guidance they gave; no, they haven't hit their peak for the year. Rather they reached the high point on their margin percentage. The street reacted negatively and sold. It was astonishing. A fine company, but he's not sure this is the best company in this space and there's a lot of competition here.