INVESTMENT CASE - BRAIT SE (BAT)

The pullback that the market has experienced in the last week or so has offered some very good opportunities to buy shares in companies with favorable fundamentals and which are solid out performers. The market does seem very uncertain at this stage, but with a careful and diligent approach, better risk weighed decisions can be made and good investment opportunities can be found.

One such opportunity, or company, is Brait SE (BAT). This is a holding company that has an impressive portfolio including; a very well positioned and ever expanding retailing business, local and international food producers, a private equity portfolio and alternative asset managers who have a very successful hedge fund business. Brait has great defensive value and has for some time now been performing better than the market. Combine this with a current P/E ratio of 5.28 and a forward P/E ratio that comes in lower at 5.26, a vastly experienced board of directors and a very conservative valuation, the investment case is compelling. It must also be said that the company compares very favorably to its sector peers.

BAT Weekly Price Chart

Above is a weekly chart of Brait SE (BAT) that should give you some idea of what the secular, or longer term trend is doing. It is yet to test its all time highs, however my feeling is that these wont put up too much of a fight.

BAT Daily Price Chart

When looking at the daily picture it becomes clear that at the times the overall market has had a difficult time rallying, BAT as proved very stable and its trend remains strongly in tact. I deem that once the current market correction is over and the overall rally continues, BAT shares should be among the top performers over the coming months.

Brait offers a very defensive long term investment opportunity with a good measure of optionality and great growth prospects.