ALTG - Greenhaven Road Capital - Alta Equipment Group: A Razor/Razorblade Model Free Cash Flow Generator

2024-05-01 09:35:00 ET

Summary

• Alta Equipment Group is a heavy equipment sales and maintenance company with geographic monopolies in certain markets.
• The company's end markets are less cyclical than they appear, with a focus on infrastructure and warehouses supported by government spending and e-commerce trends.
• Alta generates more cash than it appears, with acquisitions and rental rates contributing to its cash-generation potential.

The following segment was excerpted from this fund letter.

Alta Group ( ALTG )

An investment thesis should fit into a paragraph, or in this case a sentence. For Alta Group, there is this nice sentence: This business is (1) less cyclical than it appears, (2) generates more cash than it appears, with (3) less debt than it appears, with (4) a significant hidden growing annuity type asset, and (5) run by an owner operator who can grow organically and through acquisition for the next decade-plus, at an (6) attractive valuation....

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