there are some definitions of what defensive stock is..
my main objective is to identify a stock which is underperforming but has a solid fundamentals and will shine in medium to long term...
example is NEC - analysts e.g. Macquarie is not playing down NEC..
my philosophy here: 1. People will need entertainment. They will travel less , eat out less but will watch something. Some reports alsow suggest it. 2. Based on premis number 1 we have what it takes...e..g number 1 network , number 1 reach in Aus CNBC Universal, AFL etc.. 3. Yes, there might be a bit less adds but companies who want to increase their revenue - have to advertise..no matter what economies will be..in bad time advirtise as well 4. Our digital business will be over 50% of our Ebita next year..great defensiveness 5. Low debt level
overall, Macq. And other banks got it wrong in pandemic...and I saw their predictions in 2008..my view is they know as much as another person who reads news..
business which delivers ebita over 250mln...and trading at 600mln MC..is a investment with good margin of safety
SWM Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
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