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Matt Lindsay's avatar

Any updated thoughts on ARA? I recently started a position after following the company over the last 2/3 years.

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Brett Schafer's avatar

It looks cheap, but neither of us own it at the moment. definitely a high risk, high reward opportunity.

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Matt Lindsay's avatar

What do you see as the biggest risks here? They've always ran the business pretty conservatively.

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Brett Schafer's avatar

The biggest risk is they don't generate much growth and cash flow conversion is weak + don't optimize capital returns to shareholders. This is why stock has floundered, but it is still mighty cheap

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Matt Lindsay's avatar

Mighty cheap indeed.

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