GMA Holdings Position Size 10/2/17
GMA Holdings position size is increasing to 10.0% with Reperio Capital’s model portfolio as the company is an industry that has strong barriers to entry in the form of economies of scale from content creation costs. Profit growth and free cash flow growth within the industry should mirror GDP growth due to barriers to entry and a mature industry. Currently, revenues, operating profit, and free cash flow are showing negative growth year on year due to one-off political advertisements last year.
The market currently values the company on a EBIT yield and FCF yield of 18.4%. Assuming the company grows below expected GDP growth (6.5%) at 5%, the expected return is over 23%.