I'm a huge fan of SNL (it's my second biggest holding), and I...

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spanfred

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17/10/24

11:29

Post #: 76164356
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Originally posted by Hopeful9: ↑

From the 'lively' blog, Matthew Booker of Spheria Asset Management (never heard of it!) states:

(DYOR, as this is just one opinion):

Finally, is there one small or micro-cap company that you think could grow into a future forever holding?
Booker:Supply Network (ASX: SNL) is a company we've owned for over a decade. It was a nano-cap when we first bought it and it now is a true small cap. So it's gone from nano-cap to micro-cap to small-cap. It's the market leader in after-market parts for trucks and buses. So it's got a mid-teens market share in its trucks business and it's got probably over 20% market share in buses.
We think it's going to remain the leader. We think some of its competitors are losing share to it and that will continue over time. And if you look at other industries where you've got industrial distributors like an SNL, they get up to 40-50% market share over time. So we think this company can go from a mid-teen market share up to that 40-50% mark. You're talking about doubling or tripling the size of the business, which is significant when you're talking about a company with a market cap of $1 billion at the moment.
Over time, it can continue to reinvest in its product set, keep competitors out, and continue to put price increases through as well. So I think it's a forever stock. I think that market's going to continue to grow and they'll keep winning market share.

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I'm a huge fan of SNL (it's my second biggest holding), and I believe it has a great future over the next 10 years... but I can't personally see how it's a "forever holding". Given EV engine and battery advances, the rollout of charging infrastructure, self-driving possibilities, and the cost dynamics of each of these... the transport industry is going to change hugely over the next 30 years. It may go fully electric for purely cost reasons, and if it does, I reckon SNL will struggle.

SNL Price at posting: $29.72 Sentiment: Hold Disclosure: Held
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Last $36.50		Change 0.000(0.00%)		Mkt cap ! $1.586B

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I'm a huge fan of SNL (it's my second biggest holding), and I...

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I'm a huge fan of SNL (it's my second biggest holding), and I...

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