Stock Of The Month. Onveston Report #1
How to Build a World-Class Stock Portfolio
Dear Investor,
first of all, thank you for your patience. The first stock report is ready. If you’re a new reader fo this publication, here are the facts that give you an idea of what to expect from this and future reports:
Here are some key factors to consider this company as a long-term investment:
Company Profile:
Established software company with decades of industry experience.
Generates consistent free cash flow with a growth trajectory.
Offers regular dividend payments to shareholders.
Market Position:
Currently underappreciated by the financial community (not a "hype" stock).
Positioned as a long-term, buy-and-hold compounder.
High customer retention rates.
Unique Value Proposition:
The company's software is indirectly mandated by regulatory requirements, creating a sustained demand for their product.
Below you will find the first page of the report:
When looking at long-term investment opportunities, it's important to understand the difference between strong demand and soft demand for a company's products or services. This distinction affects how stable and promising an investment might be.
Let's explore this concept using hotels as an example.
Imagine two different hotels: Hotel A and Hotel B.
Hotel A is in a busy city that often hosts business events and trade shows.
Business travelers need a place to stay when they attend these events, so there's always a steady stream of customers for Hotel A. This is what we call strong demand - people need the service regardless of other factors.
On the other hand, Hotel B is on a beautiful island that's popular for vacations.
While many people want to stay at Hotel B, they don't necessarily need to. Their decision depends on factors like having time off work, enough money for a vacation, or simply being in the mood for a trip. This is soft demand - people want the service, but it's not essential.
Hotel A only has to compete with other hotels in its city for customers. But Hotel B is competing with every other vacation spot in the world. It's clear which hotel is likely to be a safer and more reliable investment.
Companies that cater to strong demand, like Hotel A, have several advantages:
They have steady income because there's always a need for their services.
They can better withstand economic downturns. Even in tough times, some business travel will continue.
They often secure long-term contracts with companies, providing stable income over time.
They spend less on marketing because their customers come to them out of necessity.
These benefits make businesses with strong demand attractive to investors looking for stable, long-term growth.
While we've used hotels as an example, the concept of strong demand applies to many industries. In fact, the stock I’m about to analyze is not a hotel at all, but a software company…
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Disclaimer: This analysis is not advice to buy or sell this or any stock; it is just pointing out an objective observation of unique patterns that developed from my research. Nothing herein should be construed as an offer to buy or sell securities or to give individual investment advice.