John Leonard, CFA
Special situations, micro-cap, contrarian, CFA

The Unwarranted Conglomerate Discount And Potential For Significant Value Extraction At Nortek

Company overview

Nortek (NASDAQ:NTK) is a conglomerate focusing primarily on the remodeling and replacement (R&R), residential/commercial new construction and personal/enterprise computer markets. Below are the five operating segments:

The residential ventilation (RESV) segment manufactures room and whole-house ventilation products such as range hoods and exhaust fans.

The technology solutions (NASDAQ:TECH) segment manufactures residential security/access control systems, home automation solutions and professional video signal management solutions.

The display mount solutions (DMS) segment manufactures wall/desk mounts, carts, arms, workstations and stands.

The residential heating and cooling (RHC) segment manufactures air conditioners, heat pumps, air handlers and furnaces.

The custom and engineered solutions (CES) segment manufactures HVAC products used in non-residential applications such as data centers.

Industry tailwinds +...

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