Thanks for this detailed answer, SW. Always interested by your input.
1/ I am still in IFT. Really like this story. Only problem is the high management fee, but as long as they deliver like this, it does not matter much.
2/ I am going to have a look at your idea on CRO. Had a quick look at their presentation. It looks interesting.
3/ MTO is the largest motorcycle dealership in Australia. The stock is cheap because their results were poor during the last few years, due both to high financial and operating leverage. It was due in particular to the decline of the new motorcycle market during the last 4 years (before covid). Since May 2020, there has been a significant rebound of the new motorcycle market. Apart from that, their growth is also driven by the regular increase of their sales of 2nd hand motorcycles and regular acquisitions of dealerships (at low prices). More than the cyclical rebound of their market, it is a margin story : - strong improvement of their financial situation recently due both to jobkeeper and large earnings rebound, - like other retailers, I think that the margin increase may stick for some time. Overall, I expect the margin increase for retailers to be driven by the increase in gross margin (increase of AUD and less store openings), less pressure on rents and better productivity (due in particular to programs like jobmaker). MTO is really cheap with a free cash flow yield of 16 %, based on FY 20 results, excluding the effect of jobkeeper.
