⁠Hidden Value Gems
Someone also noticed the value in $RKT.L

Activist investor Eminence Capital has built over 0.5% stake, expected to push for the sale of the Baby formula division.

Eminence also believed Reckitt’s management could do more to improve operating margins, which have shrunk in recent years.

“Other activist investors were also circling Reckitt, according to people familiar with the matter, with investors believing that the fallout from the Illinois jury’s verdict had disproportionately weighed down its stock price.”

My latest Monthly Stock Idea Lab focuses on 4 best ideas I researched last month.

The first one is Reckitt Benckiser $RKT.L $RBGLY

✅It is a 200-year global FMCG player focused on Health, Hygiene and Nutrition. The company has recently encountered a series of issues, which should be temporary.

✅This has created an interesting opportunity as the stock is down 42% from 2020 peak (down 17% YTD) and is trading at just 14.7x fwd PE.

✅The company has outperformed peers like $PG $UL $NSRGY delivering better growth and higher margins, but is trading at a 35% discount.

✅If the company can put its recent problems behind and the market regains confidence in the business, there is no reason why Reckitt should not re-rate to a peer average level of 20x P/E (similar to its historical avg). Combined with 400p dividends over two years, there could be over 60% upside (assuming 5% EPS growth). - Hidden Value Gems
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⁠Hidden Value Gems
“The MSCI China ETF $MCHI is now outperforming the S&P 500 ETF $SPY on the year after rallying over 30% from its low in January.”

h/t @charliebilello https://t.co/q66xm0Do1v
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⁠Antonio Linares
Just 2 left.

I’m selling 10 units of my 2 Hour Deep Diver course for $150 (instead of $199).

In this course, I teach folks to analyze companies like I do, breaking down the mental models behind my very successful $AMD, $TSLA, $PLTR and $SPOT investments. https://t.co/go88vfynrI - Antonio Linares
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