Today we’re adding one company to our Portfolio.
This small cap UK-based industrial company operates in a market supported by long-term electrification trends, generates attractive returns on capital, and is building a new source of recurring revenue.
Yet the market still values it like a traditional industrial business.
That gap is what caught my attention.
Chart of the day
More than 1/2 of the stocks within the S&P 500 are down 20% or more from their all-time highs.
Yet the index is near record highs.
Not every falling stock is cheap. Some are value traps. Others may be mispriced opportunities.
The real work is separating the two.
I'm not betting on a market crash.
Dispersion is the opportunity.
