⁠Capital Employed
FRESH OFF THE PRESS 🔥

Interview #99 with Darcy Morris from @EwingMorrisCo

Darcy discusses...

His background
Growing an investment company
Research process
2 stocks he's bullish on
+ much more

https://t.co/88SFeWHnxG https://t.co/vTdK8t5l2Q
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⁠Quality Stocks
📉 During difficult economic periods, order books can help to smooth volatility of the demand

💡 The order book might decrease but can help to maintain a constant activity

Some examples
🇫🇷 Airbus $AIR
🇸🇪 Saab $SAAB
🇩🇪 Rheinmetall $RHM
🇺🇸 RTX $RTX
🇫🇷 GTT $GTT (mostly follows its own cycle)
🇳🇴 Kongsberg $KOG
🇺🇸 Boeing $BA (but have other difficulties)
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⁠Quality Stocks
📢🎯 Analyst Recommendation Changes

🇳🇱 Adyen $ADYEN
BNP. Buy. 1,430€ ▶️ 1,730€ 🟢

🇨🇭 Richemont $CFR
MS. Hold. 142 ▶️ 136CHF 🔴
Stifel. Buy. 158 ▶️ 150CHF 🔴

🇫🇷 LVMH $MC
MS. Hold. 760€ ▶️ 715€ 🔴

🇳🇱 ASML $ASML
MS. Buy. 1,000€ ▶️ 925€ 🔴

🇳🇱 ASM Int. $ASM
MS. Buy. 800€ ▶️ 725€ 🔴

🇫🇷 Edenred $EDEN
MS. Hold ▶️ Buy. 55€ ▶️ 51€ 🔴

🇳🇱 BE Semi $BESI
MS. Buy. 180€ ▶️ 155€ 🔴
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⁠Hidden Value Gems
Some useful anecdotal evidence:

✅"Small-scale Chinese cloud providers charge local tech groups roughly $6 an hour to use a server with eight Nvidia A100 processors in a base configuration."

✅"Small cloud vendors in the US charge about $10 an hour for the same set-up."

✅"The low prices, according to people in the AI and cloud industry, are an indication of plentiful supply of Nvidia chips in China."

✅"China’s larger cloud operators such as Alibaba and ByteDance, known for their reliability and security, charge double to quadruple the price of smaller local vendors for similar Nvidia A100 servers."

✅"After discounts, both Chinese tech giants offer packages for prices comparable to Amazon Web Services, which charges $15 to $32 an hour."

$NVDA $BABA $TCEHY
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⁠Stock Analysis Compilation
Baron Capital on Bharat Electronics Limited $BEL IN

Thesis: BEL’s stronghold in India’s defense electronics market, supported by government initiatives and rising defense budgets, positions it for solid earnings growth

(Extract from their Q2 letter) https://t.co/aoon2pFGki
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⁠Librarian Capital
Pernod Ricard $RI ran into trouble partnering with one football club (PSG) over another (Marseille)

Diageo $DGE $DEO has similarly partnered with UK football clubs in June - all of them:

"Guinness become the Official Beer of the Premier League"

https://t.co/TaFJoXqVw0 https://t.co/kIiKHHopHK
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⁠Invest In Assets 📈
RT @InvestInAssets: Quality businesses traits:
- Growth +7%
- ROIC +15%
- Net debt/EBITDA <4
- decline in shares outstanding

5 examples:
1. williams-sonoma $wsm
2. mckesson corp $mck
3. paychex $payx
4. copart $cprt
5. nike $nke
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⁠Quality Stocks
🇫🇷 Edenred $EDEN one pager

🏆 Score 6.7/10
🎯 My faire price estimation is around 50€

🐂 Bull case
- Dynamic growth
- Serial acquirer + IT platform to help for integration
- Worldwide footprint

🐻 Bear case
- Controversies (corruption)
- Regulation risk (France, dominant position)
- Increasing competitions
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⁠Stock Analysis Compilation
Artemis Funds on Prosus $PRX NA

Thesis: Prosus offers an attractive entry point into Tencent’s growth story, with additional upside from buybacks and a significant discount to NAV

(Extract from their Q2 letter) https://t.co/NAY838Fuig
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⁠Invest In Assets 📈
120 AI tools to make you more effective at what you do: https://t.co/1zl1CKJWo5
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⁠Hidden Value Gems
Quote of the day #81 https://t.co/LwB6AUvBTT
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⁠Invest In Assets 📈
Peter Lynch on the temporary disconnect between fundamentals and share prices: https://t.co/Xoyk7bwO0l
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