6D·

De'Longhi as a solid long terms trade (now maybe the last train to enter the trade)

$DLG (+0.44%) : this is a very interesting pick for long term investment. I am now retired but I worked for this company for very long time and after leaving the company I built a portfolio in DLG share which is giving me excellent return. Disclaimer: I do not know any non-public information about the company business, I just read their financial reports with the knowledge of a industry insider.

the stock price has long term fluctuations between 22-25€ and 35-38€. Any drop to the 25-26€ is a very good buying opportunity and it usually happens whenever major investors are profit taking, given the limited amount of floating shares. Fair value in terms of P/E is probably north of 37-39EUR (to be aligned with the multiples of the competitors). Solid company, flush of cash (400EUR of cash reserves) with 50% sales exposure to an industry (coffee) which is in a "generational" growth (the penetration rate of electric coffee makers in many countries is still relatively low), while also performing well with some other flagship products as Kenwood Chef, Nutribullet, Brain minipimer #valueinvesting

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It happens that just after this post they announced a buyback program for 60Mln EUR which should give a boost to share prices. In terms of momentum, if the 2024 sales figures (to be announced in few days) are aligned with expectation, the stock price has good "fuel" to climb to 36€ or more
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