Company Profile: Orpea, founded in 1989, is one of the major providers of long-term health care in France. The nursing home company is a leader in France with 36,714 authorized beds at 394 locations.
Current Share Price: 24.45 euros (Nov. 28)Motola's Take: Motola concedes that the idea of France and nursing homes doesn't sound like a great combination. But he adds that France's government clearly can't afford to address a shortfall for nursing homes. "Here is one of the handful of players in France in an industry that is slowly consolidating," Motola says. "It's not our favorites business model is the world but it's pretty attractive. It's a case where austerity is working in your favor. There's a demand that needs to be met." While the fund specializes in growth stocks, Motola says this is one potential growth name that also provides a little stability in the portfolio. "We know how many beds are in their pipeline. We know what the mix is. We know what the revenue looks like," he says.
Zooplus Company Profile: Zooplus is a Germany-based Internet company that sells over 7,000 pet supply products that are shipped directly to customers. Current Share Price: 49.93 euros (Nov. 28) Motola's Take: Investors will probably raise an eyebrow when they hear Motola say that Zooplus "is essentially the Pets.com of Europe," a reference to the high-profile blowup of the dot-com area. Like Pets.com, Zooplus was also founded in the late 1990s. But while Pets.com collapsed without available capital, Zooplus has continued to thrive in Europe. "In the past decade, broadband penetration has improved significantly, as has willingness to buy online," Motola says. "Zooplus has been growing revenues about 30%, and is has a model built for scale. That revenue should turn into highly levered profit growth in the near term." Motola notes that the market for pet supply products is large at more than $40 billion per year. Depending on the geography, Zooplus has about 70% or more of the online market share. "Europeans are increasingly moving away from the daily shopping paradigm, and convenience and selection are compelling," Motola adds.