BrainsWay: More cash, more uncertainty (NASDAQ:BWAY)

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Richard Durant is the leader of Narweena, an asset manager focused on finding market dislocations that are the result of a poor understanding of a company's long-term prospects. Narweena believes excess risk-adjusted returns can be achieved by identifying companies with secular growth opportunities in markets with barriers to entry. Narweena's research process focuses on company and industry fundamentals with the goal of uncovering unique insights. Narweena has a high risk appetite and a long-term horizon, looking for stocks that are deeply undervalued. Coverage is skewed toward smaller-cap stocks and markets where competitive advantages are not obvious. The investments are driven by the belief that an aging population with low population growth and stagnant productivity growth will create a different set of opportunities than has worked in the past. Many industries are likely to face secular stagnation or decline, which, counterintuitively, may improve business performance if competition decreases. In contrast, other companies are likely to face rising costs and diseconomies of scale. Furthermore, economies are increasingly dominated by asset-light companies and the need for infrastructure investments is declining over time. As a result, a large pool of capital is chasing a limited set of investment opportunities, which is driving up asset prices and compressing risk premiums over time. Durant has undergraduate degrees in engineering and finance from the University of Adelaide (Honours) and an MBA. from Nanyang Technological University (Dean's Honors List). He also passed the CFA exams.

Analyst Disclosure: I/we have a beneficial long position in BWAY stock, whether through share ownership, options or other derivatives. I wrote this article myself and it expresses my own opinions. I don't receive any compensation for it (aside from Seeking Alpha). I have no business relationship with any company whose shares are mentioned in this article.

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