Thursday, July 16, 2015

Seeking Alpha: Laird's Business Is Attractive, But The Valuation Is Less So

All things considered, I think a company leveraged to growth in high-end consumer devices, wireless communication, wired autos, and automation is sitting at an attractive intersection of revenue growth potential and pay-for-performance margin leverage. Britain's Laird (OTC:LAIRY, LRD.L) is such a company, with a strong presence in electromagnetic interference and thermal shielding, as well as telematics and antenna systems. What's more, I believe management's focus on R&D-driven sales growth will pay dividends in terms of sustainable market share and margins, and there is ample room for improvement in free cash flow generation.

The "but" is that the stock's nearly 40% move over the last year and nearly 100% move over the last two years would seem to capture a lot of these positive attributes. The company is small enough to be an acquisition target, and there is certainly upside potential from automation, auto OEMs, healthcare, and IoT, but I wouldn't pay just any price for those opportunities.

Read more here:
Laird's Business Is Attractive, But The Valuation Is Less So

No comments: