Nat Stewart - Stock Picking Newsletter

Nat Stewart - Stock Picking Newsletter

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Nat Stewart - Stock Picking Newsletter
Nat Stewart - Stock Picking Newsletter
Hidden margin expansion

Hidden margin expansion

Management has been slow-rolling (potentially) enormous margin expansion

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Nat Stewart
Aug 30, 2024
∙ Paid
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Nat Stewart - Stock Picking Newsletter
Nat Stewart - Stock Picking Newsletter
Hidden margin expansion
2
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  • New fee/service agreement significantly alters business model and economics

  • Consolidated industry - other competitors already have similar agreements

  • Management has not articulated the scope of the change to investors, though all info is public domain with substantial public commentary by suppliers and consultants

  • I see potential for +$300 million of incremental cash flow on a sub $1 billion market cap security

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