over 2 years ago • 3 mins
I’m a structural engineer and part-time computer science student. I've been investing since 2018 and always looking to learn more.
Long-term investment in Inspecs Group (ticker: SPEC). This young, vertically integrated eyewear design and manufacturing company is expanding globally – both organically and through acquisitions – and is operating in a growing, non-cyclical market.
Inspecs produces eyewear for a global portfolio of fashion, sports, and lifestyle brands and patented concept eyewear. It licenses, designs, patents, manufactures, and distributes globally from bases in the UK, US, China, Hong Kong, Vietnam, Portugal, and Scandinavia. The company sells in more than 80 countries, at over 30,000 points of sale. Inspecs purchased both Eschenbach and Norville in 2020, increasing its geographical reach in continental Europe and the US – along with its brand catalogue, lens expertise, and manufacturing capabilities.
The manufacturing operations in China, Vietnam, UK, and Italy make Inspecs one of only a few vertically integrated global eyewear companies that can supply branded and private label optical and sunglasses frames to retailers in large volumes.
Key brands produced under licence include Superdry, O’Neill, Caterpillar, and Radley. While major customers include global optical retailers (including Specsavers, Boots, and Vision Express), global non-optical retailers (including ASOS, Costco, and WalMart), independent opticians, web-based retailers (including GlassesUSA.com), as well as global distributors of eyewear (including Bode and Vistan Brillen).
What are the key events you’re watching?
What’s the upside potential if your thesis is correct?
At the time of writing, the share price is 380p. I estimate at least a 50% upside if the company recovers fully from the pandemic and meets its forecast sales growth rate.
What are the big risk factors you’ve spotted, and how do you plan to mitigate them?
Do you buy into Caspar’s Inspecs pitch? Drop us a line here.
Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.