CPS

Cooper-Standard Holdings Inc

Industrial/Transportation


Presented:08/14/2018
Price:$136.98
Cap:$2.44B
Current Price:$13.03
Cap:$0.23B

Presented

Date08/14/2018
Price$136.98
Market Cap$2.44B
Ent Value$2.75B
P/E Ratio16.7x
Book Value$48.13
Div Yield0%
Shares O/S17.82M
Ave Daily Vol139,351
Short Int5.74%

Current

Price$13.03
Market Cap$0.23B
Cooper-Standard Holdings, Inc. engages in the manufacture and supply of systems and components for the automotive industry. It operates through the following geographical segments: North America, Europe, Asia Pacific, and South America. Its products include rubber and plastic sealing, fuel and brake lines, fluid transfer hoses, and anti-vibration systems. The company was founded in 2004 and is headquartered in Novi, MI.

Publicly traded companies mentioned herein: Cooper-Standard Holdings (CPS)

Highlights

The presenter is long shares of Cooper-Standard Holdings (CPS), a leading auto parts supplier with two intriguing potential catalysts that are underappreciated by the market. At ~$136, the stock is trading at a fair price given good execution by management over the last few years. However, the upside from a combination of growth in its China business, which may be able to double over 3 - 4 years; and licensing deals for a new, “revolutionary” foam rubber product called Fortrex could be substantial. With the ability to hedge out typical auto supplier and macro risks, if desired, investors can isolate the exciting parts of the story. If all goes well on both fronts - China and with Fortrex - CPS shares could double over the next 2 - 3 years.

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Idea Discussion

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