- Page 3/3
- Next Page
Management has had lots of success with prior companies, but has struggled with growth at ENGH. In its early days, there was a premium for management, and without growth as expected this impacted the valuation and the stock's returns over time. 10-year return is now negative. We do not know why the company has been so reluctant to spend its cash. It has had too much cash for far too long. A growth acquisition would be a good catalyst, certainly. Insiders do own 22%. The share count has not changed much but it has not gone down significantly with buybacks, either. The tech sector of course has been very strong, but its particular niche has been less robust. ENGH is focused and is proud of its profitability record, so its less-aggressive growth stance has kept it a laggard versus faster-growing peers (who may be unprofitable). We think it is OK, but now it is more OK for income. A takeover/privatization may be possible as we are sure management is just as frustrated as public shareholders. We think in tech CLS looks better, as do the CSU group of companies (CSU, TOI, LMN).
Unlock Premium - Try 5i Free
At 13X forward earnings for a staples company and with a long-term outlook, we think an investor will do fine with General Mills (GIS). However, there is not much growth at the business currently and we think an investor can wait a bit for some better positive momentum before getting too serious with with a name like this.
Unlock Premium - Try 5i Free
With a decline of 12.5% YTD, shares have drifted back down to the level of the 2023 takeover offer. Growth has stalled in the past four years but profits are expected to improve nicely in 2026. The balance sheet remins fine. The company does not break down its military exposure but does list 'military' as a sector it serves. But we would not see it as the biggest business driver at all. As a small company with not a lot of growth, and no dividend, we are not than enthralled by it. It remains interesting as a takeover target, but that is not enough to really build a thesis on, especially since one has been rejected already. We would not consider it a must own stock at all.
Unlock Premium - Try 5i Free
The Benefits of Long Term Investing: Better historical performance & success rate
Historically, long-term investing in diversified portfolios (such as index funds) has provided average annual returns of eight to 10 per cent over decades. While day traders can theoretically achieve high returns, the vast majority (80 to 90 per cent) actually lose money due to lack of experience, overtrading, and emotional decision-making. Long-term investors, by comparison, have a much higher probability of building wealth steadily over time.
So, to sum up, you can spend eight hours a day glued to your screen, pay high trading costs, pay taxes, get stressed out, overtrade and have less money to compound, or, you can buy a high-quality stock and let its own growth compound over decades, while you head out to the beach. Doesn’t sound like much of a contest to us.
Unlock Premium - Try 5i Free
Is up 76% this year after a choppy 2024. Troubles began last year when owner Pepsico ordered fewer energy drinks from them. CELH shares had risen on the Pepsi partnership prior to that. Since the February bottom, shares have been up 120%. In Feb. they delivered excellent numbers and acquired Alani Nu, which boasted +15% adjusted EBITDA margin and $605 million in net sales in 2024. CELH expects strong synergies between the two brands. CELH Q1 gross margin was +52.3% and +41% in international sales. Shares are pricey at 57x PE, but is historically 89x. Comps are improving and the acquisition is good.
It makes it easy to buy cryptos, offering stablecoin. Is up 484% in one month, after it went public. Its current price is crazy, though. Two banks just listed price target at $80-83 (currently $181). The market is crazy about anything crypto. Once the lock-up on insider selling expires, the shorts will shoot back. One to watch.
Holds lower-risk companies, smart beta. Hold blue chops, lets you sleep at night, plus an option overlay for additional income.