SNL – Supply Network | Aussie Stock Forums

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Ally Selby (LiveWire Markets): Next up we have Supply Network, which is one of your top holdings, Marcus. It sells parts for trucks and buses. Take us through what attracted you to that stock.

Marcus Burns (Spheria): Sure. It’s been a long-term organic rollout story. So they supply, as you said, bus and truck parts. They’re one of the leading aftermarket suppliers in Australia. If you look at the last 10 years, they’ve probably grown revenue, something like 10, 11, 12 per cent CAGR over that period of time. And they’ve grown EBIT around 20 per cent per annum on average, over that period of time. It’s an incredible story of success, very high return on capital. And yet we still think the valuation’s pretty supportive of the long-term story there. So we like that a lot.

Ally Selby (LiveWire Markets): Chris, do you think it’s a buy, hold, or sell?

Chris Stott (1851 Capital): Hold for us. It’s in a bit of a sweet spot at the moment, in a truck, car part market. Red hot at the moment. But it’s a hold for us. Liquidity in the stock’s a bit tricky for us, too. So hold.

….. Liquidity; what liquidity? Only 1 seller and leaking 80 tightly helds onto the market. From under a dollar 10 years ago, now around $7 a share

Nice one if you can get your hands on it. Market cap around $300mill; paying dividends for the last 5 yrs.

….. Earnings ……. Margins …. Net Profit …..


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