Rock Solid Value

An overlooked materials business offering a prospective 20%+ FCFE yield and 150%+ upside.

Disclaimer

Value Situations is NOT investment advice and the author is not an investment advisor.

All content on this website and in the newsletter, and all other communication and correspondence from its author, is for informational and educational purposes only and should not in any circumstances, whether express or implied, be considered to be advice of an investment, legal or any other nature.  Please carry out your own research and due diligence.

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There was a good quarry of limestone on the farm, and plenty of sand and cement had been found in one of the outhouses, so that all the materials for building were at hand.

Animal Farm, George Orwell.

Long-time readers of this newsletter will be well aware that I believe critical materials are an attractive investment theme given the persistent, inflationary outlook for the global economy today.

To date I have published various ideas along this broad theme, from energy (both in terms of physical commodity exposure and services), to fertiliser, to agricultural commodities, to precious metals, a number of which I hold as conviction ideas in the Value Situations Model Portfolio currently.

Recently I came across another idea that again fits within this theme, and which also comes with an event-driven angle and which has the potential to become a quality-value name in time with visibility to relatively high ROIC and a 20% FCFE yield.

This subject stock is an overlooked, European name with best-in-class management that operates in the construction materials and minerals sectors, and looks set to succeed in an increasingly interesting but niche part of the market.

This stock is a new conviction idea …