A Company in 500 words 1 to 10
Wonder Stocks is dedicated to identifying truly outstanding investment opportunities, which are rare and require extensive research to uncover. Our “A Company in 500” series reflects this effort, evaluating numerous businesses to find those with exceptional potential. Most companies, while often well-run, don’t meet our high standards for transformative returns.
The below provides a short summary of ten companies.
The first 10 summaries included a questionable gold miner, two established high street retailers, the strongest part of former GKN, two technology-oriented firms, a family-run lending business, a housebuilder, and a low-growth insurance book acquirer.
Companies Not Worth Further Review:
Savills: A well-managed real estate company operating in a cyclical, low-growth sector. It performs adequately but lacks the potential for significant long-term returns.
WH Smith: Known for its airport and train station stores, distinct from typical high street retail. It was a strong growth story decades ago, but today, its growth is limited, and its story is widely known.
S&U Group: A conservatively managed, family-run lender. Despite a vehicle finance mis-selling concern, it’s a stable choice but unlikely to deliver exceptional returns.
Greggs: A well-run bakery business with a strong track record, but its growth potential is largely exhausted, limiting long-term return prospects.
AltynGold: A single-site gold miner in Kazakhstan. If you feel like gambling, go to the bookies but unless you are Kazakh minister for mining or something similar, I’d keep well clear.
Chesnara: A company that acquires insurance books, offering steady yields but little excitement or growth. Capital could easily find more dynamic opportunities elsewhere.
Melrose: Once a dynamic buy-improve-sell operation, it’s now primarily the stronger part of the former GKN. It’s more appealing than Dowlais (GKN’s weaker remnant) but lacks standout potential.
Taylor Wimpey: A house builder. In good times, it makes money and management seem to get rich. In bad times, it doesn’t make money and management blame the bad times. The fact that the quality of their products is abysmal doesn’t help either. Hard pass.
Stocks worth a little more work but probably aren’t interesting
Boku: A mobile payments provider serving the unbanked, with potential for growth. However, the founders’ departure to other ventures raises questions, so cautious further analysis is needed.
Microlise: A vehicle tracking company with SaaS characteristics, established since the 1980s. Its sticky customer base and pricing power suggest growth potential, but it’s not a guaranteed win and requires more research.
Summary: Of the first 10 companies reviewed, eight don’t meet Wonder Stocks’ rigorous criteria for further investigation, while two show very modest potential but need more scrutiny. Our high standards mean few businesses will stand out, but the search for exceptional investments continues.
Wonder Stocks creates three 500 or less word summaries of companies per week. These exist to create a filter to find companies that are truly exceptional. A library of all stocks covered can be found here - these are and will always be free to read. The very best ones are covered in greater detail on our Deep Dives where we go into detail about why these companies have the potential to generate truly Wonderful returns. The first six Deep Dives are free, but accessing new investment insights requires a subscription upgrade.
