Cliff Note #112 - Special GeoInvesting Guest Post
A Warren Buffett Special: An example of how shareholder friendly capital allocation can spark a multibagger move…
Cliff Note #112 is a boring company that has been manufacturing industrial equipment for numerous industries for over 7 decades.
We first mentioned that we were adding the stock to our MS Microcap Quality Index (MSMqi) in a premium chat alert on May 8, 2025.
Our team has actually been following this company since 2014, waiting for management to become more shareholder friendly… It finally happened.
The company embodies the following traits:
A cash-generating machine.
An under-the-radar leading manufacturer that just made a move that gave it a huge competitive advantage.
Executing large Share Repurchases at higher and higher prices.
Tens of millions of dollars in expansions.
Rapidly growing earnings per share.
Trading at dirt-cheap multiples.
Furthermore, the company is now attacking higher growth markets that offer larger and more consistent growth opportunities and strengthening its competitive position through new product innovations.
We are not sure what motivated management to make these moves, but it’s all culminating in large contracts and record backlogs.
In fact, a recent large contract was only announced in a shareholder letter and in the footnotes of a recent earnings press release.
As all this occurs, the company’s valuation multiples are moving from value trap levels to levels that are more commensurate with a shareholder friendly growth company.
In order to get this idea out to you quickly, we decided to share a recent research post Maj published on Geoinvesting. Please continue below, to read this research.