Today, we would like to discuss Swatch. We have looked at Swatch for donkey years and wrote a tonne of materials about it. See below:
Since then, share price underperformed big time. To us, there is no surprise that an activist came in and now trying to shake things up. It might be interesting to do more research now and perhaps add this to the portfolio.
This post will not be a full analysis. More like a preamble. We will keep this short and sweet for now. Provide a brief background, tell the activist’s story and how the founding family reacted and set the stage for the bigger analysis.
1. Background
Swatch Group (Market Cap USD8.9bn, EV/EBITDA 8.8x), while being known for its plastic, colourful, quartz wristwatches for kids and youngsters, is actually a watchmaking conglomerate.
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