CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

Equity Bottom-Up

We initiate coverage on SFLEX with a SELL recommendation based on a target price of Bt8.90, implying a downside of 28% from the current price. We derive our target price from a DCF-based valuation using a WACC of 7.0% and a terminal growth rate of 4%.
Investment thesis:
<ul>
<li>Demand shift towards flexible plastic packaging drives growth prospects</li>
<li>Continued capacity expansion to meet the growing demand</li>
<li>Broadening product spectrum to attract customers from other industries</li>
</ul>
Interim: Food packaging drove up revenue by 15% in 2Q20 YoY. Higher sales and improved raw-material management expanded the gross margin significantly.
Risks: Reliance on four major customers, fluctuations in raw material prices, high inventory turnover, and intense price competition in packaging industry.

We initiate coverage on SFLEX with a SELL recommendation based on a target price of Bt8.90, implying a downside of 28% from the current price. We derive our target price from a DCF-based valuation using a WACC of 7.0% and a terminal growth rate of 4%.
Investment thesis:

Demand shift towards flexible plastic packaging drives growth prospects
Continued capacity expansion to meet the growing demand
Broadening product spectrum to attract customers from other industries

Interim: Food packaging drove up revenue by 15% in 2Q20 YoY. Higher sales and improved raw-material management expanded the gross margin significantly.
Risks: Reliance on four major customers, fluctuations in raw material prices, high inventory turnover, and intense price competition in packaging industry.

SFLEX: Staying Behind Key Players in the Market

Thailand

Starflex Public Company Limited provides packaging solutions. The Company offers laminated film and envelopes. Starflex serves customers in Thailand.

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Starflex PCL (SFLEX TB)

SFLEX: Staying Behind Key Players in the Market

We initiate coverage on SFLEX with a SELL recommendation based on a target price of Bt8.90, implying a downside of 28% from the current price. We...

A. Stotz Investment Research

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