SWI Pick #22 - Special Light Technology Platform with 50% 3yr Forward Growth at 15x Earnings
Essential product that is turning into a platform and winning over industry incumbents, no competition (for now).
The 22nd sleep-well pick has had a stellar run so far this year, up multiple times; however, I think this business development is so good that shares are still cheap at the current level.
This isn’t a typical compounder.
It offers a rare combination of triple-digit free cash flow growth and sleep-well qualities that can buffer against future adversity.
My first goal remains protecting our capital, but it doesn’t have to come at the expense of a lower return. This one has the most upside potential of all my picks with fading risks.
SWIs members can expect:
high reinvestment opportunities with 50% returns on investments (ROIC)
aligned management with high ownership and execution
mission-critical products to slow to change end-users
unfocused competition and high barriers to entry
squeaky clean balance sheet
low valuation
fading risks
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