Facebook
Twitter
Last year Chief Investment Strategist Ian Wyatt found a winner at the Value Investing Congress that netted his subscribers 110%. What will he uncover this year?
Today I’m going to tell you about a one of my most profitable investments of the last year.
I’m not writing to brag. There’s a similar investment opportunity on the horizon and I don’t want you to miss it.
You see, last year I drove with my wife and two small kids to New York City. We spent Sunday at the Bronx Zoo. And on a beautiful Monday morning in September, I walked across Central Park and into a windowless theatre in Columbus Circle.
For the next two days, I sat in an uncomfortable stadium chair without much legroom. The beautiful weather called me to blow off the conference and go enjoy Central Park with my kids.
Value Investing Congress: What You Need to Know
But I was attending the exclusive Value Investing Congress and too busy taking copious notes. I was so taken in by the ideas that I would even skip lunch so I could charge my laptop battery and be ready for the afternoon sessions.
You see, this event is like the Super Bowl for value investors. It’s attended by a variety of hedge fund managers and money managers for the very wealthy. They all convene in NYC for two days every fall to hear investment presentations from 20 of the best and brightest value investors.
It was at the conference last year that I heard about a company called United Rentals (NYSE: URI). You may have heard about the company a couple weeks ago when Barron’s did a big profile on the CEO (my readers were already up 94% when the story came out).
The company is a unique play on a recovering U.S. economy. That’s because United Rentals owns the largest fleet of heavy construction vehicles.
But United Rentals isn’t a construction company. Instead, the company rents its 400,000 units – everything from cranes to backhoes – to construction companies.
These construction companies like renting equipment because it requires no capital investment. From a productivity standpoint, they can rent the equipment when they need it, and at a far lower cost.
The economics make renting equipment a “win” for the construction company, and a “win” for rental companies like United Rentals. As a result, the rental business has been growing: In 1993, rentals were 5% of the market. Today, they’re 50%. And United Rentals is a leader, with a 15% market share.
After the last recession, construction has finally begun picking up. United Rentals has a little exposure to housing, and most of its business is with commercial and industrial projects.
After hearing Mick McGuire of Marcato Capital Management give his presentation on United Rentals, I headed back to my office in Vermont. I began digging into the company’s financials, evaluating the competition, and considering the growth potential of the business.
The more I dug into the story, the more I liked the stock.
In early October, I recommended the stock to a select group of my subscribers at $56. I wrote:
“Based on future earnings projections the stock could be worth $96 in the next 18-24 months. That’s a 72% premium to the current stock price.
The equipment-rental industry’s 50% penetration rate in the U.S. – though 10 times what it was in its first year two decades ago – still pales in comparison to other countries. Rental penetration in Australia, Europe, the United Kingdom and Japan ranges between 60% and 80%. America is just scratching the surface of a market that’s still relatively untapped.”
Today, shares of United Rentals are trading at $118. In less than one-year, the stock is up an impressive 110%.
United Rentals was one of roughly 30 stocks that were recommended at the Value Investing Congress last year. And this investment was a big winner for my subscribers.
I still own the stock, and believe in the long-term growth of this great business, though the biggest gains are now in the past.
But next week, 18 of the top hedge fund managers will be back in NYC at the 10th annual Value Investing Congress.
The event organizers have banned the financial media from attending the event. No press passes were granted. So you shouldn’t expect to see Barron’s or The Wall Street Journal covering the Congress.
However, I’ll be in attendance. I’ll be searching for new investment ideas, meeting with some of the brightest value investors in the world, and searching for the next United Rentals.
I’m allowing a small group of my readers to get access to the best ideas from this event. If you’re interested in getting my urgent email alerts directly from the conference, click here to learn more right now.
Can You Really Make $1 Million in the Market?
The answer is, “Yes!”. And Ian Wyatt will show you how. He’s allowing a limited number of readers unlimited access to his new trading account. His goal: build a portfolio worth $1 million. And you can follow his every move… to build your own fortune. Click here now to find out how to qualify for this unique access.