A Kaleidoscope of Ideas
Investment thesis on stocks on which I have written detailed threads.
1) Encore Capital Group
1. $ECPG - a small cap counter cyclical stock in an industry with strng barriers to entry.
Stock is available at low valuation on a normalized multiple with strong tailwinds as credit card charge off increase ovr nxt 12 mnths.
A good hedge against banks $C, $JPM, $WFC, $BAC
2) KKR
1. It is day 1 when it comes 2 pvt mkt invstng. Pvt mkt AUM is ~4% of pub mkt.
$11.3 tn in neg. yielding dbt, big pension fndng gaps & sub-par perf. of pub. mkt actv mngrs - a lot of cptl wl mv 2 pvt mkts.
$KKR, $APO, $CG, $BX r lstd PE firms - follow thrd 4 my view on $KKR. 👇
3) Nomad Foods
1. After $ECPG, another boring small cap stock at attractive valuation – its $NOMD.
$NOMD is leader in European frzn food mkt (bigger than $NESN in frzn).
Trades at ~10% FCF yield with a quality mgmt team.
$NOMD is nt a ST pantry load stry but a stable cnsmr stpls story.
3) Philip Morris International
1. $PM rprtd btr thn expctd earnings with a rebound in vol. in June.
I blv $PM has 20%+ TSR ovr nxt 12 mnths with a clear catalyst in form of buyback initiation.
$PM trades at a discount rltive to mkt & its own history. Refer to the thread for my bull thesis on $PM.
4) Symrise & Givaudan
1/ Specialty cnsmr ingredient (SCI) cos r prt of an oligopolistic mkt wid ~$90bn TAM grwing @ 4%-5%.
SCI stks hv bn lng-trm compounders - outper4mng chem. peers, S&P 500, & consumer staples.
$GIVN, $CHR.CO, $SYIEY r best SCI plyrs (all lstd in Europe).
👇Rsns 4 outper4mance
5) Gartner
1. $IT is 10x its nearest comp. $FORR & is dominant plyr in IT research.
Rsrch is a scale biz – more analyst u hire, more content u generate – more value u create.
Value $IT generates 4 its clients is evident by 84%+ retention rate that $IT maintains 4 a $33K subscription.
6) Engineers India
