Misunderstood "GARP"

Good economics, large reinvestment runway, shareholder-focused management, cheap.

With an inverted yield curve and a widely anticipated recession, it has been a difficult period to look for small cap stocks - particularly those in economically sensitive industries such as construction.

However, I believe this business has significant competitive advantages, favorable return on invested capital, and a long runway for future growth. Management is shareholder-oriented and has a logical capital allocation philosophy.

The business is undervalued on an intrinsic basis and relative to a reasonable comp set (though not exact… in terms of public companies I believe this is an “industry of one”).

As a result, I decided to take a position in the stock.