Special Situations: 10 stocks poised for long-term growth
The companies highlighted in The Edge's latest report are all undervalued vs. their industry peers, while exhibiting strong fundamentals, including impressive profit margins and strategic leverage. European and US names include: 1) Melrose - divesture of its Aerospace division looks set to unlock considerable value for investors. 2) Solvay - the share price has rerated sharply higher following the successful spin-off of Syensqo earlier this month. 3) BorgWarner - ICE to EV opportunity. 4) MDU Resources - the next big utility play; activist involvement. Click on the button below for further information on how to capitalise on these and more spin-off opportunities.
Edition: 176
- 22 December, 2023
Consumer Discretionary
This recent Spinoff from BorgWarner provides an enticing opportunity. PHIN, a supplier of automotive engineering and technology solutions, has witnessed heavy index selling pressure and is mispriced at current levels, trading at a 32% discount to its peers even though it has a lower leverage to its peers (1x vs. 2.2x), strong FCF generation & conversion (15% of FCF yield on a market cap) and has a pending dividend (in the 2% to 3% range). The Edge sees more than 50% upside from here.
Edition: 165
- 21 July, 2023