Ströer SE & Co KGaA: The Reasons to Sell (ETR: SAX)
Titled – Ströer SE & Co KGaA: The Reasons to Sell we argue that management relies exclusively on acquisitions to grow.
In our opinion, shareholder money is wasted on mediocre assets and then pitched to investors as an unprecedented growth story.
As a result, the current valuation and market expectations are divorced from fundamentals. Ströer is trading at 33x trailing earnings.
Our outlook is that non-adjusted EPS for fiscal 2016 will come in below market expectations.
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Disclosure: As of 2016/11/16 Turtle Street Capital has no positions in any stocks mentioned, but may initiate a short position in ETR: SAX over the next 72 hours. Turtle Street Capital was previously short Ströer SE & Co KGaA. Please read our full disclaimer at http://turtlestreetcapital.com/welcome/.