Friday POW!
Pick of the Week + A Major Announcement
“I’d be a bum on the street with a tin cup if the markets were always efficient.”
-Warren Buffett
***Special Announcement***
Team Haymaker is both pleased and proud to announce that we have a new contributor to our never-ending search for money-making investments. His name is Dan Bustamante and he’s run a successful hedge fund since 2020 focusing on turnarounds and value situations.
The elderly Haymaker has tracked his stock picks for many years and has been most impressed. In addition to his appraisal of the fundamental story behind new buy ideas, he is a believer in overlaying traditional research with technical analysis. That, of course, is what Team Haymaker (TH) has done for years. This is particularly the case when it comes to our relentless hunt for stocks and commodities that have broken out from multi-year trading ranges (the longer the better). Dan shares an affinity for such situations and has developed a knack for spotting those that are close to making new three-year highs and, even better, all-time highs (ATHs).
Yet, like with TH, he’s willing to buy into companies whose shares have been hard hit but are beginning to revive. This week’s POW is a good example of that. Fortunately, unlike so many stocks these days, where most of us have no clue what the company in question does, in this case we are all familiar with their products.
Not only has it been cut in half from where it was trading a bit over a year ago, it’s also corrected about 12% since Israel’s and the USA’s attack on Iran. Accordingly, it’s obviously an even better value than it was two weeks ago.
We’re excited about being able to share more opportunities from Dan with you in the near future. However, rest assured TH will continue to be on the hunt for other situations where we find the risk/reward to be compelling.
Like Warren Buffett, we're believers that the stock market is far from efficient and, as we wrote on Monday, it's becoming progressively less so. Accordingly, we might be witnessing the terminal phase of no-think "investing". It's about time.
Now, let’s get to what we have on deck for this week…
Key Points:
Tariff overhang is at least partially mitigated, causing a re-rating on the POW!’s multiple
It has record-breaking revenue
Its margins are back at the 59% level guidance and helping its…
… active $1.8B share buyback program
Has steady free cash flow (FCF) and NO DEBT
And the Pick of the Week is…
