3 Reasons to own $SRTOY
Twelfth day of my "3 reasons to own" series, today with a fast-growing German/French biotech supplier, Sartorius Stedim. Sartorius Stedim is a subsidiary of the German Sartorius AG and does the BioProcessSolutions business (accounting for 80% of revenue for the mother).

1st reason: Sartorius is a successful serial acquirer the have set the following strict M&A Criteria
  • Complementary products or technologies
  • Either among the Top 3 or USP
  • Management capacity and cultural fit
  • Fair valuation, reach Groups profitability level in 2-3 years

2nd reason: Being a supplier for a fast-growing industry with a lot of risk makes Sartorius an attractive investment for me. Biotech is a fascinating industry, but I'd never invest in an individual pharma/biotech company. I just see the risk/reward in spending bilions of dollars on research and go through the 5+ year process of getting through all 3 phases of drug approval too risky. Sartorius is a leader in a lot of these processes and profits regarless who wins. Similar too my other investments $VEEV and $DHR.

3rd reason: Most of Sartorius revenue are single use products, which serve as a subscription model. Recurring revenue is always preferable, making revenues a lot more predictable.

Unlike the name would suggest, single-use products are actually also better for the environment in many ways.

I hope you enjoyed this post about a not too well known company.
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Earnings Week (April 18) 1-day price action
We are up for another busy week of earnings! Here are the reports I will look into and how the stocks performed historically, 1 day after the earnings release.
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My favorite earning plays this week are $JNJ $PG and $DHR. $SNAP is a good "lottery" play for the more courageous among us!
I will definitively avoid $TSLA and $NFLX on earning day.
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Jonhson & Johnson $JNJ - April 19 before the open.
1-day performance in the past 12 quarters:
  • Average returns = +1.2% 🟒
  • Average price move = + / - 1.9%
  • % of positive returns = 75% 🟒
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Netflix $NFLX - April 19 after the close
1-day performance in the past 12 quarters:
  • Average returns = -3.9% πŸ”΄
  • Average price move = + / - 7.1% ⚠️
  • % of positive returns = 17% πŸ”΄
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Procter & Gamble $PG - April 20 before the open
1-day performance in the past 12 quarters:
  • Average returns = +1.0% 🟒
  • Average price move = + / - 2.0%
  • % of positive returns = 67% 🟒
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Tesla $TSLA - April 20 after the close
1-day performance in the past 12 quarters:
  • Average returns = -1.2% πŸ”΄
  • Average price move = + / - 6.5% ⚠️
  • % of positive returns = 33% πŸ”΄
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United Airlines $UAL - April 20 after the close
1-day performance in the past 12 quarters:
  • Average returns = -2.3% πŸ”΄
  • Average price move = + / - 4.2%
  • % of positive returns = 33% πŸ”΄
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Danaher $DHR - on April 21 before the open
1-day performance in the past 12 quarters:
  • Average returns = +1.6% 🟒
  • Average price move = + / - 2.1%
  • % of positive returns = 75% 🟒
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American Airlines $AAL - April 21 before the open
1-day performance in the past 12 quarters:
  • Average returns = +0.3% 🟒
  • Average price move = + / - 4.2%
  • % of positive returns = 50% 🟒
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$SNAP - April 21 after the close
1-day performance in the past 12 quarters:
  • Average returns = +10.3% 🟒
  • Average price move = + / - 20% ⚠️ 🎒 ⚠️
  • % of positive returns = 58% 🟒
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3 Reasons to own $DHR
Sixth day of my "3 reasons to own" series, today with a compounding monster: Danaher

1st reason: Danaher is a serial acquirer. In 2021 they acquired 10 companies for over $10 billion. Why are they so good at acquisitions? Find out in the 2nd reason.

2nd reason: Danaher business system (DBS) was introduced in the 1980s and is a framework which is used for every decision in Danaher. To quote Danahers IR: " exceptional PEOPLE develop outstanding PLANS and execute them using world-class tools to construct sustainable PROCESSES, resulting in superior PERFORMANCE. Superior performance and high expectations attract exceptional people, who continue the cycle. Guiding all efforts is a simple philosophy rooted in four customer-facing priorities: Quality, Delivery, Cost, and Innovation."

3rd reason: I looooove recurring revenues. If you thought that SaaS subscriptions are the only viable recurring revenue streams then think again. Danaher has 75% (up from 45% in 2015) of their revenues recurring. This is especially important for steady cashflows, which really help if you are a serial acquirer. Another company that has a similar business is $SRTOY, another holding of mine (I'll post about them next week, don't worry).

So I hope you enjoyed this post, tomorrow I'll be back with $TDOC
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3 Reasons to own $CNSWF / $CSU.TO
Fifth day of my "3 reasons to own" series, today with one of my favorite companies: Constellation Software.

1st reason: THE BEARD! Do I need say more for you to invest ? Just look at it!
On a more serious note, Founder and CEO Mark Leonard is a textbook Outsider CEO(from William Thorndikes Outsider Framework). This 2 meter giant worked as a gravedigger and was a rugby player before going into Private Equity. He then realised that PE isn't for him and wanted to persue the very attractive VMS opportunity and founded Constellation Software with a $25 million dollar investment. Since IPO in 2007, Constellation has been over a 100-bagger. Mark Leonards letters to shareholders are some of the best pieces of investment literature out there and I highly encourage reading all of them.

2nd reason: $CNSWF is a serial acquirer of Vertical Market Software companies. This means they are after monopolistic market leaders in very small niche markets (under $50 million TAM most of the time), with sticky products and high cash flows. These companies don't grow much, but they don't have to. Constellation scaled their M&A activities to unheard of levels. At a $35 billion dollar valuation they STILL acquire companies with 10 employees! They own over 500 VMS companies and intend to own them FOREVER. Last year they acquired over 100 companies and this year in Q1 they already invested around $1 billion into new acquisitions.

3rd reason: Constellation recently announced a new venture capital fund that focuses on giving existing CSI employees the opportunity to start a VMS company and get seed funding from CSI. They noticed that some of their best people tend to leave, because they have a higher drive than just working in a company. They want to build something from the ground up. So rather than letting those people go, CSI can give them the opportunity to grow as part of CSI.

I hope I could outline why I put a good chunk of my money with Canadian Wallstreet Gandalf. I'll be back tomorrow with "3 Reasons to own $DHR". Cheers!
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High conviction
I just sold out of my Medios AG ( $ILM1) position and put the money into $VEEV and $DHR.

Low conviction that didn't get punished too much.
Great opportunity to put the money into higher convictions in the health space that are more in my circle of competence.
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