We're posting up notes from the 2013 Value Investing Congress in New York. Next up is the Value Investing Challenge winner. Daniel Lawrence of Elmrox Investment Group pitched Ashland (ASH) as a long.
Daniel Lawrence's Value Investing Congress Presentation
Long Ashland (ASH)
Specialty chemical
company.
"Misunderstood transformation
with significant upside and catalysts."
Used to be commodity
chemicals company, and is now a specialty chemical company. Street is not valuing it for that
yet. Says stock doubles from here.
Owns Valvoline- he says
high barrier to entry, but low maintenance CAPEX, less than 2% of sales.
Product portfolio is
differentiated, high loyalty rates by consumers. Market giving no credit for Valvoline, effectively getting
it "for free."
Says multiple expansion as
market recognizes the transformation.
Why it's cheap? Street thinks they will make more big
acquisitions. Oil exposure, weak
cash flow, underfunded pension.
Be sure to check out the rest of the presentations from the Value Investing Congress here.
