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Librarian Capital
Henkel 24Q2 results
24H1 financials vs. pre-COVD 19H1:
Group sales €10,813m vs. €10,090m
Group Adj. EBIT €1,610m vs. €1,641m
Adj. EBIT Margin: 14.9% vs. 16.5%
Flattish EBIT vs. 2019 is combination of growth in Adhesive Tech + decline in Consumer
EM Consumer stuff is tough https://t.co/Uj5ipyfwzT
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Henkel 24Q2 results
24H1 financials vs. pre-COVD 19H1:
Group sales €10,813m vs. €10,090m
Group Adj. EBIT €1,610m vs. €1,641m
Adj. EBIT Margin: 14.9% vs. 16.5%
Flattish EBIT vs. 2019 is combination of growth in Adhesive Tech + decline in Consumer
EM Consumer stuff is tough https://t.co/Uj5ipyfwzT
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Stock Analysis Compilation
TAMIM Fund on Mcpherson’s $MCP AU
Thesis: McPherson’s, with its strategic shift towards high-margin health, wellness, and beauty brands, coupled with a recent divestment and strengthened financial position, presents a compelling opportunity
(Extract from their Q2 letter) https://t.co/cjSi9f3Zpd
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TAMIM Fund on Mcpherson’s $MCP AU
Thesis: McPherson’s, with its strategic shift towards high-margin health, wellness, and beauty brands, coupled with a recent divestment and strengthened financial position, presents a compelling opportunity
(Extract from their Q2 letter) https://t.co/cjSi9f3Zpd
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Invest In Assets 📈
RT @InvestInAssets: 10 Must-read Investing Books that will take your investing to the next level:
1. 100-Baggers https://t.co/nHSDBf8pGc
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RT @InvestInAssets: 10 Must-read Investing Books that will take your investing to the next level:
1. 100-Baggers https://t.co/nHSDBf8pGc
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Hidden Value Gems
When your business is growing AUM rather than deliver real returns:
“A JPMorgan Asset Management spokesperson acknowledged that “investors should not expect call-overwriting strategies to outperform the market on the upside over the long-term” while emphasising they could be useful for “pure income”, conservative equity exposure or replacing certain types of credit investments.”
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When your business is growing AUM rather than deliver real returns:
“A JPMorgan Asset Management spokesperson acknowledged that “investors should not expect call-overwriting strategies to outperform the market on the upside over the long-term” while emphasising they could be useful for “pure income”, conservative equity exposure or replacing certain types of credit investments.”
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Hidden Value Gems
RT @HiddenValueGems: This looks like a true hidden value gem! Lion Rock - one of the largest book printers in the world, led by the founder and largest shareholder, CK Lau.
40% of the market cap is net cash, the stock trades at 6x P/E and 31% FCF yield, 8.5% div yield.
@MikeFritzell met the founder a few months ago during his trip to HK. He has a full write-up on the stock.
Do you think they will launch / increase share buyback or do more acquisitions, Michael?
$1127.HK
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RT @HiddenValueGems: This looks like a true hidden value gem! Lion Rock - one of the largest book printers in the world, led by the founder and largest shareholder, CK Lau.
40% of the market cap is net cash, the stock trades at 6x P/E and 31% FCF yield, 8.5% div yield.
@MikeFritzell met the founder a few months ago during his trip to HK. He has a full write-up on the stock.
Do you think they will launch / increase share buyback or do more acquisitions, Michael?
$1127.HK
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Hidden Value Gems
A very interesting strategy - buying stocks that were excluded from the index.
🧵👇🏼
➡️ @RA_Insights have unveiled “a stock index named NIXT that would have earned investors about 74 times their money since 1991 by buying stocks kicked out of indexes.”
h/t @Spencerjakab
1/4 https://t.co/lhnIHYEitz
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A very interesting strategy - buying stocks that were excluded from the index.
🧵👇🏼
➡️ @RA_Insights have unveiled “a stock index named NIXT that would have earned investors about 74 times their money since 1991 by buying stocks kicked out of indexes.”
h/t @Spencerjakab
1/4 https://t.co/lhnIHYEitz
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Hidden Value Gems
An interesting take on $BRBY.L by @SmeadCap 🔍👇🏽
✅"Burberry is a London-listed fashion brand started in 1856 by Thomas Burberry. It has become known for a very British form of fashion, led by its iconic trench coats."
✅"The business hasn’t succeeded like other luxury brands, which have found far greater returns."
✅"The brand has also been looking for its longer-term leader. It changed CEO leadership in 2021 and now again with recent bad news in 2024."
✅"Burberry isn’t just a British style, it’s also indicative of British establishment thinking when it comes to capital allocation. In the prior twelve months, the company had announced or paid dividends of 0.71 pounds per share for a yield of 6% to 7%."
✅"This amount represented 60-70% of Burberry’s free cash flow at the time. For a stock that had fallen 60%, it seemed to us that it would have been a much better use of free cash flow to purchase these depressed shares."
✅Burberry is "trying to grow market share in a growing category of the mass affluent. Growing businesses tend to pay little or no dividends as they need the capital to expand their business."
✅"Who allowed multiple leadership changes and bad capital allocation via large dividends to cause pressure on the free cash flow and, thus, the capital structure of the business? The board, led by the current Chairman, provided this oversight."
✅The company now has a new CEO, Josh Schulman. They have also cut that massive dividend to zero. The consensus of analysts believes that the business, while struggling, will produce about 235 million pounds of free cash, which is down over 30% from the year prior. More importantly, at a low point in a business like this, Burberry is still producing over 20% return on equity with about two years of free cash flow in debt."
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An interesting take on $BRBY.L by @SmeadCap 🔍👇🏽
✅"Burberry is a London-listed fashion brand started in 1856 by Thomas Burberry. It has become known for a very British form of fashion, led by its iconic trench coats."
✅"The business hasn’t succeeded like other luxury brands, which have found far greater returns."
✅"The brand has also been looking for its longer-term leader. It changed CEO leadership in 2021 and now again with recent bad news in 2024."
✅"Burberry isn’t just a British style, it’s also indicative of British establishment thinking when it comes to capital allocation. In the prior twelve months, the company had announced or paid dividends of 0.71 pounds per share for a yield of 6% to 7%."
✅"This amount represented 60-70% of Burberry’s free cash flow at the time. For a stock that had fallen 60%, it seemed to us that it would have been a much better use of free cash flow to purchase these depressed shares."
✅Burberry is "trying to grow market share in a growing category of the mass affluent. Growing businesses tend to pay little or no dividends as they need the capital to expand their business."
✅"Who allowed multiple leadership changes and bad capital allocation via large dividends to cause pressure on the free cash flow and, thus, the capital structure of the business? The board, led by the current Chairman, provided this oversight."
✅The company now has a new CEO, Josh Schulman. They have also cut that massive dividend to zero. The consensus of analysts believes that the business, while struggling, will produce about 235 million pounds of free cash, which is down over 30% from the year prior. More importantly, at a low point in a business like this, Burberry is still producing over 20% return on equity with about two years of free cash flow in debt."
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