Matthias Riechert presented his in-depth investment thesis on Judges Scientific (London: JDG) at European Investing Summit 2016.
Joining Matthias for the session is Dhiren Joshi, a Master of Finance student at London Business School, specializing in value investing. Dhiren has been working with Matthias on a research project.
Judges Scientific, a small roll-up in the scientific instrument area, is a “young elephant”. It is young enough to enjoy a long runway of growth but mature enough to allow for a confident assessment. Judges possesses many of the elements that make a business great. Matthias therefore believes it is likely that Judges will reinvest free cash flows at high returns on incremental capital through thoughtful and disciplined acquisitions. After a disappointing year, the stock market has become pessimistic and now offers the company at ~14x 2016E FCF (owner earnings). This gives investors a chance to invest cheaply into a company that can significantly grow FCF for a long time, with low capex requirements and high returns on invested capital.
About the instructor:
Matthias Riechert is co-founder and portfolio manager at Polleit & Riechert Investment Management, an investment firm dedicated to significantly increasing the wealth of its clients, adjusted for inflation. Prior to co-founding the firm in 2012, Matthias worked at Citigroup, including as head of investment products Germany, from 2001 to 2010. Previously, he was an equity and options trader at Van der Moolen. Matthias holds an MBA from Columbia Business School and London Business School.
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