Forbes – Scout Capital, which announced a 5% stake in Sensata Technology Holdings in May of this year, presented their reasons for being bullish on the company today at the Value Investing Congress in New York City. Sensata produces a range of low-cost, high-value sensors and switches, used for things like car airbags, airplane circuit breakers and switches in large HVAC systems. “Because of the mission critical nature of these products,” said Scout Capital co-founder James Crichton, “it’s very difficult to design Sensata out.”
“They make a $10 sensor for $1000 engines, and the sensor enables the engine to pass critical inspections,” said Crichton, noting that producers are unlikely to switch away from Sensata because of the company’s reliability and low cost.
