For a developed country, it offered decent growth and was below the radar.
Sadly, I only talked but not walked as the company was satisfied with 10% revenue growth.
The stock has grown quite well backed by acquisitions, not only organic growth, and is 6 times up since 2013 when I wrote i.e. 210% CAGR.
Even now no institution has evinced much interest in CAPILANO HONEY
It is certainly hard to foresee such a strong performance from a mere low revenue compounder.
But the 70% market share Capilano had in Australia, conjoined with 5% yield was screaming for attention.
These days I am mulling a company which is growing revenues only at 8%, but has 100% market share in a developed country, available at 20 times earnings, 100% payout ratio, i.e. 5% dividend yield, whether to pull the trigger or not. Always hard to prognosticate by far fewer than trillion grey cells inside this tiny skull, especially when compared to opportunity cost of 20% revenue growth by a company in an underdeveloped or developing country available at 10 times earnings. Wondering if I am missing out on another Capilano Honey.
SOURCE: Long Term Equities – Read entire story here.