To read our full disclaimer, click here.
I found something peculiar in the markets last week.
A company that's never had a loss-making year in 40 years of operations.
25% returns on invested capital.
63% EBITDA growth since 2017.
Dominant market position with 50% market share in their core segment.
And it's trading at 8x earnings.
The disconnect is so extreme it made me do a double-take.
While the stock has been massacred by technical selling and guilt-by-association fears, their customers are reporting record order books - up 10-30% across the board.
This is a proven wealth compounder that's been systematically consolidating a fragmented market through 200+ identified acquisition targets, each hitting 20%+ IRR hurdles.
The CEO owns meaningful skin in the game.
The business model has beautiful unit economics with 1-2 year paybacks on assets that last 10-15 years.
And they've got inelastic demand for mission-critical equipment where failure shuts down entire projects costing hundreds of thousands per day.
Yet Mr. Market is pricing this like a dying cyclical because of temporary factors that have nothing to do with the underlying fundamentals.
This stock now makes up 30% of my portfolio.
Here’s what it is…