LITTELFUSE (LFUS.O)
An engineering firm that makes fuses and sensors for the automotive, consumer electronics and industrial markets. With the coming electrification of the world, demand for fuses and sensors should continue to rise. The stock fell today as a recent acquisition that accounts for a third of the size of the company’s revenues held back earnings and themarket pushed the stock 10 per cent lower. To me, this is a gift to buy a solid free cash flow generating firm at a cheap price. We’re in year four of hopefully a 20-year holding period for Littelfuse. Earnings expectations are for mid-teens annual growth, well above average.
INTERTEK GROUP (ITRK.L)
Offers product inspection services such as textiles, toys, chemicals, electronic products, building materials and agricultural products for governments, importers and exporters. Worldwide demand for product safety has increased materially and Intertek expects both its profits and dividends to grow in the 20 per cent range for the next decade.
ROLLINS (ROL.N)
Provides pest control services (Orkin is their most notable subsidiary) in the U.S., Canada and Mexico. After floods and earthquakes, as we’ve seen in Mexico, and floods caused by hurricanes in Texas and Florida, pest populations grow, causing infestations. This includes ants, rats, termites and the like. From a valuation standpoint, the stock is expensive but it’s the only game in town for pest control.
Disclosure Personal Family Portfolio
LFUS Y Y Y
ITRK Y Y Y
ROL Y Y Y