Penn Wealth Publishing

2019.09.15 Penn Wealth Report Vol 7 Issue 04

Issue link:

Contents of this Issue


Page 12 of 29

15 Sep 2019 penn wealth Report volume 7 iSSue 04 13 Penn Wealth Report Copyright 2019. All Rights Reserved. investment intelligence Under The radar Four investments being ignored—or missed—by the financial press Adient PLC Consumer Discretionary: Automotive Adient PLC (ADNT $12-$22-$50) is a Dublin-based, $2 billion spinoff from Johnson Controls (JCI). e firm is the world's leading supplier of automotive seating, which (somewhat surprisingly) tends to be an extremely "sticky" industry—once a player wins the business, customers (automakers) tend to stick with them. In addition to automakers, the firm announced a joint agreement with Boeing (BA) last year to make aircraft seats for the world's largest aerospace firm. Adient commands a market share of roughly 45% in North America, Europe, and China. ADNT has a dividend yield of 5%. Airgain, Inc Communications Equipment Umpqua Holdings Corp Financials: Regional Banks Macerich Co Real Estate: REITs Airgain, Inc (AIRG $9-$12-$17) is one of the many relevant—if not essential—5G companies you have probably never heard of. e San Diego-based, $121 million small- cap makes the embedded antenna technologies used to enable the modern suite of communication products, from routers and gateways, to smart-TV and IoT (Internet of ings) devices. e firm has a flawless balance sheet, and a client list that includes the larg- est telecom and technology companies in the world. Although not currently in any of the Penn Strategies, we would place a fair value of $16 per share on the firm. Umpqua Holdings Corp (UMPQ $15-$16-$22) is a $3.4 billion mid-cap community bank which operates mainly in the Pacific Northwest. e bank provides a full range of financial services, from banking to wealth management to mortgages. Net interest income is the bank's primary source of revenue. e bank attempts to differentiate itself in a crowded market through both innovation in its product delivery system and an exceptional client service experience for its members. With a P/E ratio of 10 and a dividend yield of 5.39% TTM, the shares look attractive. UMPQ earned $316 million on $1.2 billion in revenues last year. Macerich Co (MAC $28-$30-$58) is a $4 billion retail real estate investment trust (REIT) that invests in premium mall assets. Yes, we have dogged out retail REITS in the recent past, but these have been companies investing in Class B and C malls. Macerich owns roughly 50 of America's most healthy shopping areas. e company is also spear- heading the latest trend in retail: redefining the mall experience by adding non-traditional tenants. e high quality of their properties and the creative leadership they have shown in transforming the industry should allow MAC to continue raking in the profits. MAC, which carries a dividend yield of 9.93%, is sitting near the low end of its 52-week price range. 3 2 1 4

Articles in this issue

Archives of this issue

view archives of Penn Wealth Publishing - 2019.09.15 Penn Wealth Report Vol 7 Issue 04