Fall 2017

Jeremy Weisstub and Damian Creber of Aryeh Capital believe that ServiceMaster Global Holdings presents a compelling investment opportunity due to its strong market position and potential for growth. They emphasize the importance of understanding the business deeply before making investment decisions, suggesting that ServiceMaster's fundamentals support a favorable outlook.

We are long on Spirit Aerosystems (SPR) with an end of 2017 price target of $72, offering 31% upside from 11/11/2016's price of $55.02. The investment thesis is supported by favorable industry dynamics, high customer captivity due to exclusive contracts, and growing profitability from maturing programs like the Boeing 787 and A350XWB.

ServiceMaster is a complex company with three market-leading businesses: Terminix, American Home Shield, and a franchise business. The stock price has fallen from over $40 to $32 due to market misunderstanding and concerns about Terminix's growth, which we believe are unfounded. The underlying businesses are high-quality with strong competitive advantages and growth potential, making this an attractive investment opportunity.

ServiceMaster is expected to grow free cash flow per share by 15-20% per year, with the stock currently trading at a 7.5% FCF yield. The upcoming spinoff of American Home Shield (AHS) and Terminix is anticipated to unlock additional value for shareholders, with a conservative target price of $60 based on sum-of-the-parts analysis.