Discover more from Capital Employed
17 Intriguing Stock Pitches (1st-13th April)⚡
Read in less than 5 minutes.
At Capital Employed we interview smart investors.
We like to learn about their methodology, thoughts on the current market, and much more. We also discuss the stocks they’re bullish on.
We have some fantastic interviews being published soon.
⚡ Consider becoming a Premium Subscriber to read these interviews in full, and gain access to the growing archive of interviews, for just $100 annual or $10 monthly subscription.
Ok lets dive into this weeks newsletter.
Below are the stock pitches we’ve enjoyed reading in the past 2 weeks →
SDI Group (SDI)
SDI specializes in acquiring and operating niche manufacturing businesses in the life sciences, industrial, and scientific equipment and instruments sectors.
Written by Value and Opportunity
Logistec, a maritime terminal operator from Canada. This is a solid but boring business with family ownership, good growth opportunities and a very moderate valuation.
Sensirion Holding (SENS)
A €1.5 billion leading manufacturer of high-quality environmental and flow sensors for the measurement and control of humidity, gas flow, liquid flow and machine diagnostics.
API Group (APG)
The largest provider of life and safety services globally. Founded in 1926, and public via SPAC in October 2019 APG inspects fire alarms, sprinklers, HVAC systems and critical infrastructure .
Hotel Chocolat (HOTC)
Since its stock market debut back in 2016, this company has always traded at demanding multiples (high growth and good margins to support it), but over the past 12 months, due to a series of circumstances discussed in the article, its share price has fallen by up to 75%.
Toya SA (TOA)
The Polish Black & Decker selling at a low valuation.
Sanlam Ltd (SLM)
South African leading life insurer listed on the Johannesburg Stock Exchange. Leader in the continent. Reasonable valuation (P/E 10). Good Digital strategy.
Halyk is the largest bank in Kazakhstan, with a market share of 32.7% on deposits. The company has shown consistent earnings growth. The stock is trading at a PE of 2.7
Delek US (DK)
A sum of the parts valuation suggests 78% upside. The reality may be even more.
Future PLC (FUTR)
UK small cap serial acquirer selling at a cheap price.
Patrick Industries (PATK)
A component supplier for major OEMs in RV, Marine, and Manufactured housing. You might have never heard the name but they have compounded earnings 40% a year for the last 10.
Ulta Beauty (ULTA)
A leading beauty retailer in the US that offers a wide range of beauty products and services.
Activation Group (9919 HK)
A cheap pick-and-shovel play on Chinese luxury consumption.
Choice Properties (CHP)
Invest in real estate with one of Canada's richest families. The Westons invest for the long term and I'm happy to invest alongside them.
Kura Sushi (KRUS)
For the past few years, the quarterly takeaway from Kura Sushi has felt same-ish. A great fundamental showing paired with a continuously ludicrous valuation.
A very small, very profitable company. There are no adjustments in how it presents its financials - just clean reported numbers. It also has 0 debt on its balance sheet, and alongside cash, the company holds a sizable portfolio of marketable securities.
A Uruguayan company that owns the operating rights to the Tres Cruces bus terminal and shopping mall, both of which are the largest in the country.
🔦 Community Spotlight
In this section, we highlight people in the community who have been kind enough to share this newsletter.
Capital Gains is an educational newsletter spun out of The Diff: a deeply analytical newsletter that applies concepts in finance, economics, and corporate strategy.
The problem is that those concepts aren’t taught in school, so the analysis tends to appeal to founders, VCs, hedge fund managers, and the like.
Whether you’re on a finance career track, trying to understand what your company’s stock options package means, or just curious about how the economy works, Capital Gains gives you the mental models you need.
Thanks for reading.
This article is for informational and educational purposes only, and should not be seen as investment advice. Please do your own research before investing in any company mentioned.