Fallen Angels and Glamour Stocks
We’ve seen how rollups can be an amazing source of growth, but they can also be painful when they come unstuck. In this episode of Buy Hold Sell, we look at 5 companies that are growing by acquisition. We ask our panel whether momentum will continue for the glamour stocks, and will the fallen angels make a comeback?
Key Points
- Mantra: Possible soft earnings guidance and currency headwinds.
- National Storage: Good idea, but priced for it.
- G8 Education: Demand for the service. Government support. Possibility of bank finance. However, well into their strategy and organic growth lacking.
- BWX: Big opportunities in US and Europe, as well as China. However dependent on a single brand.
- IPH: No assets, principals cashed up and have been net sellers, currency headwinds, escrow stock coming out, lack of organic growth.
Watch next
You can access more great market insight from our panel on the traps to watch for when buying roll-ups, and also 5 companies changing the landscape.
Buy Hold Sell is a weekly video series exclusively available through Livewire. In each episode two fund managers are asked for their views 'Buy, Hold or Sell' on five ASX listed companies. The format is meant to be short, sharp, insightful and...