Offshore
Photo
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
tweet
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
tweet
Offshore
Photo
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
tweet
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
tweet
Offshore
Photo
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."
tweet
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."
tweet
Offshore
Photo
Hidden Value Gems
RT @TheIdeaFarm: 10 Stats from Research by Michael Mauboussin (@mjmauboussin)
tweet
RT @TheIdeaFarm: 10 Stats from Research by Michael Mauboussin (@mjmauboussin)
tweet
Offshore
Photo
Librarian Capital
Home Depot $HD FY24Q2
Q2 comp sales -3.3% y/y, incl. US -3.6%
Total sales +0.6% (* w/ SRS acquisition)
Adj. EBIT flattish with margin -20 bps to 15.3%
Adj. EPS also flattish
Updates FY24 guidance*
52-wk Comp sales down 3-4% (was down 1%)
53-wk Adj. EPS down 1-3% (was up 1%) https://t.co/GiLL8cf8tA
tweet
Home Depot $HD FY24Q2
Q2 comp sales -3.3% y/y, incl. US -3.6%
Total sales +0.6% (* w/ SRS acquisition)
Adj. EBIT flattish with margin -20 bps to 15.3%
Adj. EPS also flattish
Updates FY24 guidance*
52-wk Comp sales down 3-4% (was down 1%)
53-wk Adj. EPS down 1-3% (was up 1%) https://t.co/GiLL8cf8tA
tweet
Offshore
Photo
Hidden Value Gems
In case you are thinking of buying $NVDA today. It can still deliver, but the chances are slim…
h/t @TheIdeaFarm based on @mjmauboussin research https://t.co/dcpdQcqxQq
tweet
In case you are thinking of buying $NVDA today. It can still deliver, but the chances are slim…
h/t @TheIdeaFarm based on @mjmauboussin research https://t.co/dcpdQcqxQq
tweet
Offshore
Photo
Librarian Capital
Great read: "Abyss: The Cuban Missile Crisis" (Max Hastings)
Highly relevant with Ukraine war (which motivated the book) and possible Taiwan conflict
Another lesson is poor info, incompetence and bad actors are key factors even in great affairs of state
https://t.co/8NZ3YIaaEa https://t.co/MeOoMORUWx
tweet
Great read: "Abyss: The Cuban Missile Crisis" (Max Hastings)
Highly relevant with Ukraine war (which motivated the book) and possible Taiwan conflict
Another lesson is poor info, incompetence and bad actors are key factors even in great affairs of state
https://t.co/8NZ3YIaaEa https://t.co/MeOoMORUWx
tweet