TDG - Transdigm

[stahleyp]

I'm surprised this hasn't been posted, with the popularity of Outsiders, so I decided to start a thread. Thorndike (the author) brings up the company on page 34.

TDG is a components manufacturer. He says that it has grown cash flow at a compound rate of over 25% since 1993 and is similar to Capital Cities back in the day.  He goes on to say that they company has a nice moat due to how their parts are engineered into military and commercial aircraft.

It also has decent insider ownership.

I have virtually no experience in this sector so I wanted to throw the idea out there!

[wellmont]

this one is on my buy in a bear market list...

[stahleyp]

Yeah, wellmont, I was thinking about that too. It's certainly not cheap right now.

[rogermunibond]

It's essentially a rollup compny of avionics, aviation, and tech parts manufcturers. I looked at it shortly after their ipo in 2007 and passed . They weren't cheap then either, and based on there moat and fcf I don't think they will get cheap.  Alan Fournier of Pennant bought them early on and still holds all the shares. Big winner for them.

Warburg Pincus was the sponsor.  I've tracked a number of Warburg Pincus companies that have done very well after ipo, so I watch for them now. Don't want to make the same mistake again.

[giofranchi]

Recent post by The Brooklyn Investor:

http://brooklyninvestor.blogspot.it/2013/10/transdigm-group-tdg.html


giofranchi

[jay21]

It's essentially a rollup compny of avionics, aviation, and tech parts manufcturers. I looked at it shortly after their ipo in 2007 and passed . They weren't cheap then either, and based on there moat and fcf I don't think they will get cheap.  Alan Fournier of Pennant bought them early on and still holds all the shares. Big winner for them.

Warburg Pincus was the sponsor.  I've tracked a number of Warburg Pincus companies that have done very well after ipo, so I watch for them now. Don't want to make the same mistake again.

If you are sure that these guys have a huge moat and will grow earnings or cash flow a share by > 10%, then a 20x multiple can be cheap imo.

[Liberty]

http://www.transdigm.com/phoenix.zhtml?c=196053&p=irol-newsArticle&ID=1876282&highlight=

[Cunninghamew]

Ha.. I was reading about them yesterday. Wally Weitz's shop post brief blurbs on companies every so often that are worth reading. Here is their post on TDG

https://weitzinvestments.com/resources/documents/Literature_and_Publications/About/News/Analyst%20Corner.pdf

[Liberty]

http://www.beyondproxy.com/tdg/

[stahleyp]

ha. I was getting ready to post that too, Liberty.   

As a side note, it looks like a couple of the tiger funds have a position in it too.