By Tom Garland, MBA 15
The Win: 2nd place at Ivey Business School's Ben Graham Centre for Value Investing 2015 Stock Picking Competition in Toronto last month
The Team: Tom Garland, Zane Keller, and Ryan Stanley, all FTMBA 15
The Field: Teams from 25 business schools internationally, with three invited to the final in Toronto.
The Pitch: With all three finalists given the same stock to evaluate, we were tasked with pitching a "buy" or "no buy" and explaining our rationale. Our conclusion was a "no buy" for the stock—Buehler Inc—on the basis of three key value factors:
- The company's free cash flow has been negative since 1994, owing to poor sales and a highly capital-intensive industry
- Significant declines in ROIC
- Opaque ownership and incentive structure