Is this the mythical "heads I win, tails you lose" share?
Thank you for the post. I considered Begbies as an option to play this thesis, however it is not as attractive as Manolete for the following reasons:
1. Their historical average margins are way lower than Manolete´s as I show below:
Manolete margins: (including the terrible years after the insolvency ban)
Gross margins have averaged 57%
Operating margins have averaged 23%
Net margins have averaged 16%
Begpies margins:
Gross margins have averaged 46%
Operating margins have averaged 12%
Net margins have averaged 5%
2. PE ratio: (LTM)
Manolete: 28
Begpies: 434
Im not interested in a business with much lower margins and a more expensive valuation.
Hope this helps you and your subscribers.
Thank you for the post. I considered Begbies as an option to play this thesis, however it is not as attractive as Manolete for the following reasons:
1. Their historical average margins are way lower than Manolete´s as I show below:
Manolete margins: (including the terrible years after the insolvency ban)
Gross margins have averaged 57%
Operating margins have averaged 23%
Net margins have averaged 16%
Begpies margins:
Gross margins have averaged 46%
Operating margins have averaged 12%
Net margins have averaged 5%
2. PE ratio: (LTM)
Manolete: 28
Begpies: 434
Im not interested in a business with much lower margins and a more expensive valuation.
Hope this helps you and your subscribers.