PJ Kurzweil sees smooth sailing ahead for BC
PJ Kurzweil, founder of PJ's SMID Cap Ideas, comes on the podcast to discuss his write up on Brunswick (BC). BC is a boat manufacturer, and PJ thinks they are too cheap and the market is missing how much more economically resilient the business is today than it was ~10 years ago.My BC notes: https://twitter.com/YetAnotherValue/status/1529822951016497153?s=20&t=lAssCowdwRLleeF1c1ZVEwPJ's BC write up: https://philippejkurzweil.substack.com/p/brunswick-corporation-1-pager-summary?r=1g9l5j&s=w&utm_campaign=post&utm_medium=webChapters0:00 Intro3:25 BC overview5:15 What is PJ seeing in BC that the market's missing?8:50 Is BC about to run into COVID pull forward headwinds?13:25 Sizing the boat market16:20 BC's recession risk20:10 BC's P&A business and recurring revenue26:00 Capital allocation and M&A multiples30:20 BC's vertically integrated model: advantage or overblown?33:50 BC's Freedom Boat Club optionality38:45 Share buybacks and insider ownership42:30 BC's improving free cash flow45:15 Is BC bringing capacity on right as demand falls off?47:30 Interest rate, inflation, and financing risks51:15 Rising gas prices effect on boat demand54:20 Vontier (VNT) and closing thoughts