Being financially trained, I’m naturally a cautious man. However occasionally you have to ‘smell the coffee’ when the fundamentals change, perhaps forever. In fact if nothing else, the pandemic has taught ‘value investors’ (like myself) to rip up many historical norms, and peer instead through the ‘looking glass’. Particularly relating to medicine, sustainable living and technology, which we believe have now all entered golden periods. Why is this important? Well for a while I’ve been a little sceptical that even the world’s best engineering companies could consistently expand the top line at 10%+ organically, whilst delivering 10%+ EBIT margins over the economic cycle. This rarely happens (see below), but due to astute foresight, attention to detail & almost flawless execution, we think Mpac has every chance of breaking the mould.
30 Mar 2021
Strategic progress drives valuation to 600p/share
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Strategic progress drives valuation to 600p/share
Mpac Group PLC (MPAC:LON) | 472 -11.8 (-0.5%) | Mkt Cap: 96.7m
- Published:
30 Mar 2021 -
Author:
Paul Hill -
Pages:
13
Being financially trained, I’m naturally a cautious man. However occasionally you have to ‘smell the coffee’ when the fundamentals change, perhaps forever. In fact if nothing else, the pandemic has taught ‘value investors’ (like myself) to rip up many historical norms, and peer instead through the ‘looking glass’. Particularly relating to medicine, sustainable living and technology, which we believe have now all entered golden periods. Why is this important? Well for a while I’ve been a little sceptical that even the world’s best engineering companies could consistently expand the top line at 10%+ organically, whilst delivering 10%+ EBIT margins over the economic cycle. This rarely happens (see below), but due to astute foresight, attention to detail & almost flawless execution, we think Mpac has every chance of breaking the mould.