A solid if unspectacular quarter. One has to be struck by the optimism expressed on the call.
Key quote (paraphrase):
“We are excited about the current and upcoming acquisition environment and see the bid/ask gap that exists in the private company sale market narrowing. We are in the unusually advantageous position of being able to deploy capital without the assistance of 3rd party financing”.”
Other Comments:
- Also any acquisition will be immediately accredive to earnings.
- It is reasonable for one to think an acquisition will be done in 2009 or early 2010…
- Regarding bid/ask spread, the “ask” price is coming down either from more realistic expectations or urgency on the part of the seller.
- Expect employment trends to move to 4.5%-5% contract labor. Will have a huge effect on staffing industry
Listen to the earnings call here
Disclosure (“none” means no position):Long CODI
4 replies on “Compass Diversified Q2 Results & Earning Call Notes”
I will give it to you Todd, you are pretty damn smart.
I'll bite…..why?
Haha well, I think the natural gas analysis is especially good, particularly sourcing all the info from earnings releases and conference calls. Basically that general style of analysis and investing.
Well in that case, thank you much…