Corticeira Amorim Sa - This is a free brief article , if you want more of this (or others) i have a complete insight , charts and data to support.
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Publicado em 29 de janeiro de 2016
Primus Inter Pares - is a Latin phrase meaning first among equals......
For those who dont know what Corticeira Amorim Sa company,maybe you have seen Garret Macnamara surfing huge waves on Nazare with the Cork made surfboard (partner with Mercedes and others) , so by that you can see already the potencial and the versatality of the material.
Who?
Corticeira (COR ticket) is the world's largest producer of cork products and the most international of Portuguese companies. He is leading the entire industry, contributing as no other for the economy and for innovation in the cork row.
What do you mean ?
It operates through the following business units: Raw Materials, Cork Stoppers, Floor and Wall Coverings, Composite Cork, and Insulation Cork. Raw Materials business unit consolidates cork preparation methods; establishes modernization process for manufacturing natural cork discs; and researches and develops in the areas of forestry and sensorial properties of cork. Cork Stoppers business unit produces and sells natural cork stoppers under brands. Floor and Wall Coverings business unit produces and markets cutting-edge floor and wall covering products under the Wicanders brand. Composite Cork business unit researches, develops, and produces cork composite solutions. Insulation Cork business unit produces acoustic and thermal insulation agglomerates under brands.
Why ?
As you may see on chart of Corticeira , this is a Classic buy and hold.. the cause of the drop was because of the last subprime crisis since then it rises 70% per year (aprox.) but due to dividends and market liquidity i think this is a must in every portfolio.
PSI20 (less than 20..) Portuguese stock Index
You can reach also to another conclusion...this stock doesnt get to much afected by the poor perform of internal market and the Portuguese Stock index market, See the chart , corticeira goes up and Psi20 goes down ----» due to banking scandals crisis , political issues , europe and world economic uncertain.
They have nice sales over the years based on some sectors , im talking about Real State/Construction , Wine sector , and you may also realize that the potencial risk is from these sectors
They keep an eye to the future,so they buy some core area companys to facilitate distribution outside Portugal and increase sales like TREFINOS, S.L. a leader in the manufacture and sale of champagne and sparkling wine cork stoppers in Catalonia (a really nice move). They also have invested time and money in R&D, the market acceptance over the years and the potencial of this material , the new milenial trends , the ecological issues makes this very important sector to the company.The debt is low and manageable, and cash flow is healthy.
When?
You can jump right now, the stock it’s at a good price (almost cheap) and if it drops like 2008 or close, after will likely rise again big time.You may also wait if you are neutral or market pessimist, if drop to 2008 or close it will be a bargain, but if not.. you may loose it at a nice price.It all comes to you risk profile
So next time you see a Cork product or with it , you´ll remind of this.
This is a free brief article , if you want more of this (or others) i have a complete insight , charts and data to support . Im also available for vacancies and/or Consultancy
