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
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