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Promoting 4imprint as a US play

Signs that a Donald Trump administration could stoke US economic growth is good for promotional products group 4imprint (FOUR). Buy at £16.63.
Despite being a market leader it has a modest share (around 2%) of a $24 billion addressable market in the US which accounts for 95%+ of its revenue. It has an excellent track record of under promising and over delivering.
The company is inherently cash generative with limited requirements for working capital or capital expenditure.
Now that action has been taken to address the company’s pension liabilities (76% of which are now insured), the company should be able to deliver more generous dividends to shareholders. It currently offers a prospective 2.9% yield.
The main risk for investors to weigh is a US downturn. In the 2007/8 financial crisis the shares collapsed despite a relatively robust financial performance. (TS)
Not cheap on a forward price to earnings ratio of 18.5 but a high-quality way of gaining US exposure.
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