One of our holdings reported last week.
The bad news first: Their legacy business barely grew this year.
The good news: Their new segment showed .. growth in the past month.
Music to my ears.
Peter Lynch gave different names to different types of companies:
Fast growers (pretty self-explanatory)
Asset plays (hidden value on the balance sheet)
etc.
I call this kind of company a Phoenix.
In mythology, this bird repeats an endless cycle of dying in flames and being reborn from the ashes.
In business, it means the transition from a mature or declining company back to high growth.
Those are our favorite types!
There can be different ways a company becomes a Phoenix, but the simplest is a change in business model and trying to make sales into a new segment.
I’m building a specific agent called Hunter that parses through filings, looking for this exact pattern (well, it’s a bit more complex than just finding a new business segment). I’ll report on the progress in our Invest with AI newsletter.
That’s exactly what is happening here.
They reported their annual results on August 27.
Let’s dive deeper into what has happened.