market folly

We're posting up notes from the Invest For Kids 2016 investment conference.  Next up is William Heard of Heard Capital who pitched long Fair Isaac (FICO).


William Heard's Presentation at Invest For Kids Chicago 2016

•    Long Fair Isaac (FICO)

•    Misunderstood, synonymous with credit scores but has a much broader, better business

•    60% applications, 25% credit scores, 15% tools

•    Valuation seems rich on P/E and P/BV but still a good opportunity

•    Not just levered to consumer credit and mature, saturated markets -- $8 billion total addressable market, so a move from current 3% share to 5% means hundreds of millions in revenues

•    Shrinking share count: -57% since 2004

•    Have beaten quarterly estimates more often than not in recent quarters

•    Only six analysts cover the company

•    $150 price target at 22x forward EPS


Be sure to check out the rest of the presentations from Invest For Kids 2016.