RE:DONVILLE KENT SEPTEMBER NEWSLETTER Thanks for posting the link.
For those people who like other people to do their work , here's the comment missing the unpastable chart. Rest of the article worth reading .
Enterprise Group (E) – This is the first time we’re writing about Enterprise
Group. The stock is performing well and has grown into a large position within
the fund. The company has been around for a long time but what attracted us to
the company has only emerged within the last couple of years. The business
10ROE REPORTER | DKAM
offers all the oilfield service equipment one might expect, but it is their
Evolution Power Projects (EPP) division that is driving over 40% growth in cash
earnings this year. EPP offers mobile power supply for energy companies that
saves the client 80-90% in costs, is more reliable, and reduces emissions
significantly. Their product is a great ROI for the client which allows Enterprise
to generate significant margins and ROI for themselves. We estimate this
division generates +50% IRRs and the fact that they have an exclusivity
agreement for the underlying technology, gives them the runway to go from 30
units to hundreds within energy the sector, and hundreds more within the mining
sector.
*A note to make on both ZDC & Enterprise is that we believe we’re in the first
innings of their growth story. Their stock prices have obviously performed well
recently, but much like when we invested in Boyd Group or GoEasy early on,
the stock charts may have looked like “we already missed it” which we view as
a flawed investment mentality, at least when it comes to long term compounders.