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Globe editors have posted this research report with permission of Acumen Capital. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:
The next reporting period will be starting in early November. We discuss our expectations for stock performance and discuss potential opportunities. Economic factors have blurred the outlook for most of our names, and investors are no longer confident in what growth rates to expect. Some of our companies have positive near term fundamentals that point to attractive intrinsic value, but given market conditions pricing expectations have been reset and price moves will likely find more upwards resistance.
We take this opportunity to review our names and highlight the stocks that are setting up with attractive price points relative to the potential of longer term value creation. As is typical in these market sell offs, the market becomes less discerning when comparing our companies to the peers and price-out the potential for growth. We review our growth expectations for all the companies and in certain cases we make adjustments to our estimates and target prices where the risk has increased that growth may be below previous levels.
We highlight our best near term ideas. We chose these names as we expect potential catalysts in the next 3 – 12 months that will advance the business plans and drive incremental value beyond organic growth. These names are less cyclical, and investors should be buying or adding to positions. Nothing has materially changed for these names, and they are now at attractive prices. The companies are all fiscally strong and have historically made strong progress during turbulent times. The quality and growth of earnings coupled with potential catalysts should help drive the stock prices higher.
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