While these shares are trading at a discount, some company insiders have been adding to their holdings. The company is expected to grow earnings by more than 22% next year.
CommScope Holding Company, Inc. (COMM)
From The Lancz Letter
The remaining three weeks of 2021 will be interesting with added volatility creating opportunities to both accumulate bargains as well as lock-in profits. Keep in mind that stocks that have been pummeled will face added volatility due to potential tax-loss selling.
In past years we accumulated quality into weakness straight through New Year’s Eve and this year should be no different. Next year will be more challenging, similar to what investors have experienced during the second half of this year.
The volatility and extreme divergence between the winners and losers will be here to stay throughout the new year. The multitude of new investors that were riding the momentum train are now experiencing significant losses for the first time. This has already created buying opportunities and will continue to produce extreme swings as momentums switch from greed to fear and visa-versa.
We cannot finish our Favorites for 2022 without a low priced speculative name and CommScope Holding Company fits the bill. Rather than down for just a week or two (like PayPal and Zillow) COMM has traded below $10 for over a month down well over 50% from highs just over four months ago.
The company’s communication infrastructure cycle is starting to turn which bodes well for fundamental improvement into the second half of 2022. At current depressed single digit valuation, its stock represents significant upside potential with limited downside. That is a type of solid risk-to-reward we like in a core investment.
Alan B. Lancz, The Lancz Letter, lanczglobal.com, 419-536-5200, December 8, 2021