IMPORTANT! From 1 August 2023 all my podcasts became part of a premium service for UK private investors. More details here >>
21 October 2023
By Maynard Paton
Our Investors Roundtable Podcast discussed Bruce’s liking for Hargreaves Lansdown, why Focusrite has appeared on my radar and why Mark reckons Strix is undervalued.
Roland and I also discussed telematics specialist Quartix for the latest Private Investor’s Podcast.
During the Investors Roundtable Podcast, we covered:
Hargreaves Lansdown (750p/£3.5b):
- Bruce recapped why Hargreaves Lansdown is a ‘quality compounder’, which prompted the following points:
- The P/E of 12 and 6% yield, entering the wealth-management sector and strategy criticism from Peter Hargreaves.
- The new chief executive, account popularity among private investors and charging high fees.
- Clients holding cash, permanently higher IT costs and future growth rates.
- I recapped the attractions of Focusrite, which prompted the following points:
- The lack of recent organic growth, returns on reinvested earnings and the replacement cycle of music equipment.
- New product development, the tentative latest trading statement and low free cash generation.
- High stock levels, supply-chain issues and the potential for a founder-led sale.
- Mark recapped the recovery upside potential of Strix, which prompted the following points:
- A possible EV to earnings of 7, the chief exec’s shareholding and the likelihood of another profit wobble.
- Previously higher debt levels, buying private-equity flotations after problems and the company’s much higher interest costs.
- Management’s sales targets, Mark buying after the profit warning and kettle-usage advice from cheapskate investors.
During the Private Investor’s Podcast, Roland and I covered telematics specialist Quartix. We talked about:
- The commendable dividend record and attractive financials that make the company an intriguing watch-list share.
- What the telematics service offers, the typical customers and past growth.
- The company’s ‘scalability’, payback periods and high gross margins.
- Customer churn, customer longevity and new customer acquisition.
- Stagnant profit, the declining profit margin, greater employee costs and staff turnover.
- Reduced revenue per tracker, overseas expansion and the group’s competitive advantage.
- Co-founder Andrew Walters’ comeback, option targets and the major institutional shareholders.
- July’s H1 figures, forecasts for 2023/4 and our valuation thoughts.
You can listen to both of these podcasts (and more!) through this premium podcast service >>