I’m back with a really interesting idea that I got from Donville Kent Asset Management. I’d like to thank them because they are one of my biggest sources of inspiration and I’m sure they’ll be back with astonishing results after this volatile period.
Redi-Shred is a Canadian roll-up that operates in the B2B and residential recycling business. The company is earning roughly 6 times what it earned in 2017 and the share price has stayed at the same level. The key points of the thesis are:
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Recurring revenue model.
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Provides an essential service to other small/medium sized companies.
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Market share of 2.5%.
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Double digit predictable organic growth.
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35% margin of safety at current price of CAD$3.8.
Asymmetrical situation: limited downside risk and upside potential of 2-3x.
https://horusholdings.substack.com/p/redi-shred-playing-poker-knowing?r=1gdlvi&utm_campaign=post&utm_medium=web