I started having a little poke into Bisalloy today after I heard @Wini and Dean Fergie on The Call (who are an excellent combination by the way) who both give this a buy.

The numbers are intoxicating. An NPAT CAGR of 34% over the last 8 years, free cash flow has CAGRed at 25% over the past 7 years, a dividend yield of 9.9% (which includes a special dividend), a squeaky clean balance sheet and a PE of 9!

But a little googling revealed this article which shows a complex business deeply embedded into politics. One where Malcolm Turnbell owns 2.3 million shares and Dave Sharma also owns shares both of whom have done really well off the SP performance. There is a strong social consideration here and not just in the way we all adjust our tolerance to social factors like gambling etc. Bisalloy provides armour for Israeli tanks. Clearly this will be divisive to investors but what is interesting is this has an impact on the business which needs to be considered even if you are comfortable investing in it. The blockade is an obvious example of that. Funds will probably keep out of it. It will probably always trade on a low multiple?

But there is a lot to like here though. It's a market leader, is well diversified across markets and geographies, plenty of tail winds from defence spending, the chairman David Balkin owns 17%, growth has been impressive and it's cheap! It also has a unique product, an obvious value add to customers and political support - at least at the moment.

This business is probably not for me but a really good one nevertheless.

Anyone got thoughts on this one?