Stella Jones (SJ)
Q: With the recent volatility, several companies on my watchlist have seen their multiples fall to more reasonable levels compared to the last 2-3 years. In the current climate, I find low debt, strong management and overall quality to be more important than ever.
Considering these criteria, RCH, ADW.A and SJ are starting to stand out. The main issue I have is, growth might not be as high/steady as it was in previous years, so in the end they might not be that much of a bargain; maybe they are just more fairly valued, not "mispriced".
What would be your take on this? Is a 15-16 forward P\E for 8-10 % EPS growth and overall quality a reasonable price to pay? Or is this a case by case basis? What are the main points of reference, aside from industry, competition, company history, etc.?
I understand there are many other factors, but still, am trying to get my head around valuation. Thank you!
Q: Hi,
I currently own SJ and MX for materials. Are there any US names you like right now in the sector?
Thanks,
Brent
Q: Looking at fundamentals and management which company do you think has the most recovery and safety. I own them both and can only add to one. Thank you as always.
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