Markets hate uncertainty. So much so that it can shake even experienced investors out of their positions, alongside shunting new money on to the sidelines. Sure this bunkertype mentality is understandable, yet equally excessive ‘fear’ creates opportunity for those prepared to look through the short-term fog. Take Vp, an equipment rental specialist, operating in the UK (92% sales) and overseas. Here sentiment is being buffeted by worries about a ‘no-deal Brexit’, general slowdown in UK construction and the possibility of a fine (estimated at £0m-£9m) relating to its Groundforce unit. The latter is being investigated by the Competition and Markets Authority for potential anti-competitive behaviour - albeit, we suspect ultimately any monetary penalty will be immaterial in the context of the business’ £333m marketcap.
25 Jul 2019
Undervalued ‘all weather’ stock
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Undervalued ‘all weather’ stock
Markets hate uncertainty. So much so that it can shake even experienced investors out of their positions, alongside shunting new money on to the sidelines. Sure this bunkertype mentality is understandable, yet equally excessive ‘fear’ creates opportunity for those prepared to look through the short-term fog. Take Vp, an equipment rental specialist, operating in the UK (92% sales) and overseas. Here sentiment is being buffeted by worries about a ‘no-deal Brexit’, general slowdown in UK construction and the possibility of a fine (estimated at £0m-£9m) relating to its Groundforce unit. The latter is being investigated by the Competition and Markets Authority for potential anti-competitive behaviour - albeit, we suspect ultimately any monetary penalty will be immaterial in the context of the business’ £333m marketcap.