Yes, it's on the watchlist in case of a really good drop - at 20% mid-cycle cash flow yield. But may never enter my portfolio, especially if there are other more interesting stocks entering a buy zone for me. Interesting also due to 30% backing from Berkshire.
Hi Nick, they seem to be positioned well in this situation since they have all the manufacturing in the US - fully vertically integrated. This is an exerpt from their call:
"""
I mean one of my thoughts is that if our government starts putting tariffs on imports from other countries, a lot of the smaller aviation manufacturers, avionics manufacturers that I know, they outsource their production. They don't have production capabilities. We are kind of very unique in that area that we had manufacturing capabilities in-house for everything. And that's kind of always been the strength of IS&S when it comes to whether there is tariffs, whether there is supply chain issues, our cost of material is small relative to our sales prices because of all the value-added things that we do in-house. So even if material goes up, it doesn't significantly impact our profitability. So that combination and that formula allows us to -- if they stop putting tariffs and a lot of these guys getting the boards made in Southeast Asia, their prices are going to go up. And we may be able to pick them up for a good price and then bring their production in-house and benefit from it. Just an idea that we believe may pay off if we pick the right company.
Yeah I saw that line on their ec. I only concern. Jut hope US trade war with allies won’t affect to their product line and future orders. They are also fund the growth using bank loan, and the current corp bond market is a disaster.
They don't have too much debt in my opinion. Worst case, the growth is slower than expected. But let's wait for the next earnings call. I am not too concerned. At the moment a stock is just 10% down from my entry point. If it's down more than 30%, I'll probably add more.
I like natural resources, but these companies will be heavily affected by trade wars. Like China is the largest natural resource buyers, and tariffs will hit US producers etc. I also hold Mexico, poland, Brazil stock exchage, they are cheap but grow pretty slowly. I like flowtraders, seems they’ll earn a lot of money this year. How do u like their risk control? That’s my only concern.
Flow Traders is still my favorite idea. This crazy market movements will definitely benifit them. Let's see if they make earnings on the same order of magnitude as during Corona in 2Q25. But even Q1 should be good.
For natural resources, we should just wait for good risk/reward for each company. But buying when everybody sells is the best opportunity to make long-term returns. I'll post when I make any moves there. Looking closely at Strathcona and will probably start the position at CA$23.
Yes, it's on the watchlist in case of a really good drop - at 20% mid-cycle cash flow yield. But may never enter my portfolio, especially if there are other more interesting stocks entering a buy zone for me. Interesting also due to 30% backing from Berkshire.
Any thoughts on Issc? It dropped a lot recently.
Hi Nick, they seem to be positioned well in this situation since they have all the manufacturing in the US - fully vertically integrated. This is an exerpt from their call:
"""
I mean one of my thoughts is that if our government starts putting tariffs on imports from other countries, a lot of the smaller aviation manufacturers, avionics manufacturers that I know, they outsource their production. They don't have production capabilities. We are kind of very unique in that area that we had manufacturing capabilities in-house for everything. And that's kind of always been the strength of IS&S when it comes to whether there is tariffs, whether there is supply chain issues, our cost of material is small relative to our sales prices because of all the value-added things that we do in-house. So even if material goes up, it doesn't significantly impact our profitability. So that combination and that formula allows us to -- if they stop putting tariffs and a lot of these guys getting the boards made in Southeast Asia, their prices are going to go up. And we may be able to pick them up for a good price and then bring their production in-house and benefit from it. Just an idea that we believe may pay off if we pick the right company.
"""
Yeah I saw that line on their ec. I only concern. Jut hope US trade war with allies won’t affect to their product line and future orders. They are also fund the growth using bank loan, and the current corp bond market is a disaster.
They don't have too much debt in my opinion. Worst case, the growth is slower than expected. But let's wait for the next earnings call. I am not too concerned. At the moment a stock is just 10% down from my entry point. If it's down more than 30%, I'll probably add more.
And it's been very quiet, no insider trades recently. No idea how they'll affected by tariffs and the reform of DOD
I like natural resources, but these companies will be heavily affected by trade wars. Like China is the largest natural resource buyers, and tariffs will hit US producers etc. I also hold Mexico, poland, Brazil stock exchage, they are cheap but grow pretty slowly. I like flowtraders, seems they’ll earn a lot of money this year. How do u like their risk control? That’s my only concern.
Flow Traders is still my favorite idea. This crazy market movements will definitely benifit them. Let's see if they make earnings on the same order of magnitude as during Corona in 2Q25. But even Q1 should be good.
For natural resources, we should just wait for good risk/reward for each company. But buying when everybody sells is the best opportunity to make long-term returns. I'll post when I make any moves there. Looking closely at Strathcona and will probably start the position at CA$23.
Any triggers been pulled recently?
Pulled any triggers recently? I nibbled something here and there.
Hi Nick, no meaningful additions yet
I’m looking like pawn shops like $EZPW, seems they would get many back wind under current circumstance, any thoughts?
Hi Nick, no I haven't looked at them. Why do you think it's a good idea?
Pawn shop use to be good during economy downturn and gold price rise also help. But this company has some historical interest alignment issue.
Oxy is a pretty high cost producer I think?