September '24 Stock Pick

A simple business in a not so easy industry averaging >20% ROCE, with no debt, a shrinking share count, and trades for ~10x Pre-Tax. What else do you need to take a small bite?

While preparing for last month’s post, I wrote down two names that I liked equally for different reasons. I chose one and decided to push the other until next month.

Well, a certain other investor bought the name and the news sent the stock up ~10%. Lucky for me after the most recent earnings have sent the price back down a little.

Well, we will find out if this is actually “good” for me or not.

I am attracted to this business due to the fundamentals and the capital allocation strategy. It’s a simple business in a not-so-easy industry but has shown it can not only compete but also produce excellent financial metrics at the same time.

Before we dive in here is the scorecard through the last 9 months:

Like always, I make these picks with a long-term time horizon and each of them is not a big position in the portfolio so take them with a grain of salt and keep this in mind when reading ahead.

Here is my pick for September.

Please be advised, Wall St Gunslinger is not an investment adviser and does not give personal investment advice. All content is for educational and entertainment purposes only and should not be interpreted as anything other than such. Investing entails a lot of risks and should be managed appropriately. Please do your own research and consult with an investment professional before making any investing decisions. Thank you.