Geoff Gannon October 19, 2017

What’s NACCO’s Margin of Safety?

  After reading my write-up, a member asked me about the margin of safety in NACCO (NC): “…why would someone put half of their portfolio weight in a stock like this where there is customer concentration risk plus a real risk that one of the customers may close shop? Agree that its FCF yield is 10% or so but does it deserve that kind of weight?” I don’t want to exaggerate the safety of this stock. I didn’t write it up for a newsletter. This...

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