Weekly Snack #15
Weekly Snack #15
Construction, uranium, M&A with some insurance
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Investment Pitches
TL;DR:
First on deck for this week is another post from
talking about Atkore International ATKR 0.00%↑. Atkore makes electrical, safety, and infrastructure products for both residential and non-residential construction markets. The reason Colin writes about ATKR is because the company was a huge benefactor from the COVID pandemic but now in a post-COVID world, the earnings of the company have come down considerably and their price took a tumble in 2023 before rebounding. Given the company is expected to have EPS decline by 15% this year, they are estimating a bounceback in 2025. With its history of converting 80 - 90% of net income into FCF, Colin believes that despite the run-up in the stock price, ATKR is a good business trading at under 10x earnings.
TL;DR:
While not a direct equity research post,
shared thier thoughts on why they decided to sell (some of) his uranium positions. For those of you that don’t know, uranium has been on a tear since 2023 and many believe the upside will continue. The author briefly goes into their thoughts via 5 very succinct points about the market and the thesis behind it. It’s a short, but interesting read and drops a few names that might be of interest to those who are currently in, or looking to enter the space. Cameco CCJ 0.00%↑ / NexGen Energy NXE 0.00%↑ / Denison Mines Corp DNN 0.00%↑
TL;DR:
With recent M&A news being annouced all over the market,
shared their thoughts on the Amazon AMZN 0.00%↑ iRobot IRBT 0.00%↑ acquisition. With a laser focused microscope on big tech acquisitions, the FTC and related international commissions have really come down on these deals. Despite thier all out assault, CGC believes that recent news regarding the EU commission to take a second look at the deal are overblown and incorporates the pros/cons of the deal and why concerns are overblown to the downside.
TL;DR:
of posted a piece on Kinsale Group KNSL 0.00%↑. KNSL is an excess and surplus lines (E&S) insurer in the US. Historically, the company, has been pricey on a multiples basis but given the over 25% drawdown, Hong believes that it gives investors an attractive entry point for the stock. With his math included in the post, calculations suggest that the company could deliver a forward IRR of 10-20% over the next 3-5 years.
TL;DR:
published their thoughts on Estee Lauder EL 0.00%↑ over the holidays and I noticed that the name has been getting tossed around recently on Twitter. StockOpine’s posts are always lengthy but not boring. They always highlight relevant details on their research in an easy way to read for those who know nothing about the stock going in. While I typically prefer shorter, actionable ideas, they don’t skimp on making sure you know the company at or nearly as well as they do. Given their math, the investment may not reach the hurdles that many have hoped for in discussions on Twitter. Have a look.
Tweets of the Week
General Research
Podcasts & Interviews
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Until next week,
Paul Cerro
Thanks for the mention!