TDG - The Resolution to TransDigm's $20 Million Mystery
TransDigm Group has long been a top-performer due to its impressive margins but faced criticism amid an ongoing investigation into price gouging and excess profits. In this clip from Motley Fool Live , recorded on Dec. 14 , Motley Fool contributor Lou Whiteman unravels the report and long-awaited conclusion.
Lou Whiteman: We're going to be real quick here because there are a couple of questions. This is a Fool Stock Advisor pick, a great performer, an 800% performer, TransDigm Group (NYSE:TDG) . It's a company I've talked about a lot. It's one of my favorite aerospace suppliers. One of the things they have been dinged on over the last year and a half is this ongoing Pentagon investigation into excess profits, which I love that term. This idea that the only reason TransDigm has been a wonderful company generating 40% plus margins as a manufacturer, software margins while making stuff, is because they are just gouging the Pentagon just like all of those stories you heard in the '80s. Well, the shorts have been banging on this thing for two years over this and the final report is finally out. John, I know we're running out of time, but I am going to share it with you right here and, I should say, since there may be a bit of tongue in cheek here, I should disclose that I am long TransDigm. So take this for what it is, but here it is, the report in full. Can you see it?
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The Resolution to TransDigm's $20 Million Mystery