Offshore
Photo
Hidden Value Gems
Best-ever first half-year results by $GAW.L
➡️Revenue (constant currency) +23%
➡️Core profit (CC) +23%
➡️Total operating profit +33%
No update on the Amazon IP deal at this point. https://t.co/tVeZuL7lhq
tweet
Best-ever first half-year results by $GAW.L
➡️Revenue (constant currency) +23%
➡️Core profit (CC) +23%
➡️Total operating profit +33%
No update on the Amazon IP deal at this point. https://t.co/tVeZuL7lhq
tweet
Offshore
Photo
Stock Analysis Compilation
Baron International Growth Fund on Lynas Rare Earths Limited $LYC AU
Thesis: Lynas is a leading Australian rare earths mining company positioned to benefit from rising demand for Neodymium ore in high-performance applications, while contributing to reducing global reliance on Chinese supply chains.
(Extract from their Q3 letter)
tweet
Baron International Growth Fund on Lynas Rare Earths Limited $LYC AU
Thesis: Lynas is a leading Australian rare earths mining company positioned to benefit from rising demand for Neodymium ore in high-performance applications, while contributing to reducing global reliance on Chinese supply chains.
(Extract from their Q3 letter)
tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
A quality valuation analysis on $NVDA 🧘🏽♂️
•NTM P/E Ratio: 33.80x
•1-Year Mean: 37.21x
•NTM FCF Yield: 2.67%
•1-Year Mean: 2.39%
As you can see, $NVDA appears to be trading somewhere near fair value
Going forward, investors can receive ~10% MORE in earnings per share & ~11% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $NVDA is a quality business
BALANCE SHEET✅
•Cash & Short-Term Inv: $38.49B
•Long-Term Debt: $8.46B
$NVDA has a strong balance sheet, an AA- S&P Credit Rating, & 236x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2020: 19.1%
•2021: 19.1%
•2022: 26.0%
•2023: 16.2%
•2024: 60.5%
•LTM: 92.4%
RETURN ON EQUITY✅
•2020: 26.0%
•2021: 29.8%
•2022: 44.8%
•2023: 17.9%
•2024: 91.5%
•LTM: 127.2%
$NVDA has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2020: $16.68B
•2025E: $129.14B
•CAGR: 63.89%
FREE CASH FLOW✅
•2020: $4.27B
•2025E: $64.54B
•CAGR: 72.13%
NORMALIZED EPS✅
•2020: $0.14
•2025E: $2.95
•CAGR: 83.96%
SHARE BUYBACKS🆗 (nominal change)
•2019 Shares Outstanding: 25.00B
•LTM Shares Outstanding: 24.86B
MARGINS✅
•LTM Gross Margins: 75.9%
•LTM Operating Margins: 62.7%
•LTM Net Income Margins: 55.7%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~10% MORE in EPS & ~10% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $NVDA has to grow earnings at a 16.90% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2026 - 2027 EPS growth over the next few years to be more than the (16.90%) required growth rate:
2025E: $2.95 (127.9% YoY) *FY Jan
2026E: $4.45 (50.5% YoY)
2027E: $5.61 (26.1% YoY)
$NVDA has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $NVDA ends 2027 with $5.61 in EPS & see its CAGR potential assuming different multiples
32x P/E: $178.88💵 … ~15.5% CAGR
31x P/E: $173.29💵 … ~13.7% CAGR
30x P/E: $167.70💵 … ~11.9% CAGR
29x P/E: $162.11💵 … ~10.1% CAGR
28x P/E: $156.52💵 … ~8.2% CAGR
As you can see, $NVDA appears to have attractive return potential IF we assume >30x earnings, a multiple generally below its historical averages & a multiple that’s justified given the company’s growth rate & moat
$NVDA is a fair consideration today at $133💵
I am more inclined to buy $NVDA closer to $120💵 where I could reasonably expect ~12% CAGR assuming a 27x end multiple, ensuring a decent margin of safety
What stands out to me is $NVDA consistent ability to exceed ambitious expectations, not just meeting but significantly beating estimates. This impressive performance has justified its previously demanding valuation, with the company effectively growing into its premium valuation 👌🏽
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬[...]
A quality valuation analysis on $NVDA 🧘🏽♂️
•NTM P/E Ratio: 33.80x
•1-Year Mean: 37.21x
•NTM FCF Yield: 2.67%
•1-Year Mean: 2.39%
As you can see, $NVDA appears to be trading somewhere near fair value
Going forward, investors can receive ~10% MORE in earnings per share & ~11% MORE in FCF per share 🧠***
Before we get into valuation, let’s take a look at why $NVDA is a quality business
BALANCE SHEET✅
•Cash & Short-Term Inv: $38.49B
•Long-Term Debt: $8.46B
$NVDA has a strong balance sheet, an AA- S&P Credit Rating, & 236x FFO Interest Coverage Ratio
RETURN ON CAPITAL✅
•2020: 19.1%
•2021: 19.1%
•2022: 26.0%
•2023: 16.2%
•2024: 60.5%
•LTM: 92.4%
RETURN ON EQUITY✅
•2020: 26.0%
•2021: 29.8%
•2022: 44.8%
•2023: 17.9%
•2024: 91.5%
•LTM: 127.2%
$NVDA has strong return metrics, highlighting the financial efficiency of the business
REVENUES✅
•2020: $16.68B
•2025E: $129.14B
•CAGR: 63.89%
FREE CASH FLOW✅
•2020: $4.27B
•2025E: $64.54B
•CAGR: 72.13%
NORMALIZED EPS✅
•2020: $0.14
•2025E: $2.95
•CAGR: 83.96%
SHARE BUYBACKS🆗 (nominal change)
•2019 Shares Outstanding: 25.00B
•LTM Shares Outstanding: 24.86B
MARGINS✅
•LTM Gross Margins: 75.9%
•LTM Operating Margins: 62.7%
•LTM Net Income Margins: 55.7%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive ~10% MORE in EPS & ~10% MORE in FCF per share
Using Benjamin Graham’s 2G rule of thumb, $NVDA has to grow earnings at a 16.90% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2026 - 2027 EPS growth over the next few years to be more than the (16.90%) required growth rate:
2025E: $2.95 (127.9% YoY) *FY Jan
2026E: $4.45 (50.5% YoY)
2027E: $5.61 (26.1% YoY)
$NVDA has an excellent track record of meeting analyst estimates ~2 years out, so let’s assume $NVDA ends 2027 with $5.61 in EPS & see its CAGR potential assuming different multiples
32x P/E: $178.88💵 … ~15.5% CAGR
31x P/E: $173.29💵 … ~13.7% CAGR
30x P/E: $167.70💵 … ~11.9% CAGR
29x P/E: $162.11💵 … ~10.1% CAGR
28x P/E: $156.52💵 … ~8.2% CAGR
As you can see, $NVDA appears to have attractive return potential IF we assume >30x earnings, a multiple generally below its historical averages & a multiple that’s justified given the company’s growth rate & moat
$NVDA is a fair consideration today at $133💵
I am more inclined to buy $NVDA closer to $120💵 where I could reasonably expect ~12% CAGR assuming a 27x end multiple, ensuring a decent margin of safety
What stands out to me is $NVDA consistent ability to exceed ambitious expectations, not just meeting but significantly beating estimates. This impressive performance has justified its previously demanding valuation, with the company effectively growing into its premium valuation 👌🏽
#stocks #investing
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬[...]
Offshore
Photo
InsideArbitrage
$PINC Premier Inc.👇👇
Significant progress in share repurchase since the $1 billion share buyback announced in Feb 2024...
▪️ November 6, 2024: The company completed its $400 million accelerated share repurchase transaction in July.
▪️ In August and September, it repurchased an additional $58 million of shares in the open market
▪️ In January 2025, the company completed execution of the additional $200 million of repurchases of its Class A Common Stock that it announced in August 2024
The company has repurchased a total of $600 million of its common stock under the share repurchase authorization
tweet
$PINC Premier Inc.👇👇
Significant progress in share repurchase since the $1 billion share buyback announced in Feb 2024...
▪️ November 6, 2024: The company completed its $400 million accelerated share repurchase transaction in July.
▪️ In August and September, it repurchased an additional $58 million of shares in the open market
▪️ In January 2025, the company completed execution of the additional $200 million of repurchases of its Class A Common Stock that it announced in August 2024
The company has repurchased a total of $600 million of its common stock under the share repurchase authorization
tweet
Offshore
Video
Startup Archive
RT @Jason: 2012 babies! 👶🏻 👶🏻
tweet
RT @Jason: 2012 babies! 👶🏻 👶🏻
Naval Ravikant on VCs that replace founders with “bozo CEOs”
“I really feel like as an investor, if you can’t back the founder until the founder is ready to give it up, then you probably shouldn’t be backing that founder. That’s just a personal opinion. And if the founder feels they still have to keep going, in a way, it’s their right.”
Naval continues:
“If you feel that the best businesses are built by the people who stick it out — who persevere. Then you only want to back the people who really will persevere. And then when you back them, you sort of make a moral compact with them that, ‘I’m going to back you through, good times and bad.’”
He also points out that smart founders are no longer giving VCs the power to fire them:
“That power is going away… At Venture Hacks, our tagline was: ‘Valuation is temporary, control is forever.’ And it was all about not fixating so much on the other pieces. Just make sure you keep control. If you have control, it’s your company. And the day you lose control, you’re no longer an entrepreneur, you’re an employee.”
Video source: @twistartups @jason (2012) tweet
Offshore
Photo
InsideArbitrage
United Rentals $URI to Acquire H&E Equipment Services $HEES for $4.8 Billion -
✴️United Rentals intends to commence a tender offer by January 28, 2025, to acquire all of the outstanding shares of H&E common stock for $92 per share in cash, representing a 109.38% premium from the stock’s last close.
✴️The merger agreement includes a 35-day “go-shop” period, ending on February 17, 2025.
✴️The transaction is expected to close in Q1 2025.
tweet
United Rentals $URI to Acquire H&E Equipment Services $HEES for $4.8 Billion -
✴️United Rentals intends to commence a tender offer by January 28, 2025, to acquire all of the outstanding shares of H&E common stock for $92 per share in cash, representing a 109.38% premium from the stock’s last close.
✴️The merger agreement includes a 35-day “go-shop” period, ending on February 17, 2025.
✴️The transaction is expected to close in Q1 2025.
tweet
Offshore
Photo
InsideArbitrage
Land & Buildings Investment Management asked Apartment Investment and Management (Aimco) $AIV to immediately pursue the company’s strategic review through a sale of the whole company.
✴️Aimco last week announced exploring options, including a sale of the company.
✴️"We expect there to be a deep pool of potential acquirers for all or parts of the company and that a transaction could be entered into by mid-2025," Litt said, adding that "it is the only one that makes sense".
✴️In 2023 also activist investor Jonathan Litt’s Land & Buildings Investment Management had urged Aimco to evaluate all potential alternatives including a sale.
tweet
Land & Buildings Investment Management asked Apartment Investment and Management (Aimco) $AIV to immediately pursue the company’s strategic review through a sale of the whole company.
✴️Aimco last week announced exploring options, including a sale of the company.
✴️"We expect there to be a deep pool of potential acquirers for all or parts of the company and that a transaction could be entered into by mid-2025," Litt said, adding that "it is the only one that makes sense".
✴️In 2023 also activist investor Jonathan Litt’s Land & Buildings Investment Management had urged Aimco to evaluate all potential alternatives including a sale.
tweet
Offshore
Photo
Stock Analysis Compilation
Baron International Growth Fund on Meituan $3690 HK
Thesis: Meituan is a leading Chinese food delivery platform with over 70% market share and a strong local services super app, expected to deliver over 20% compound earnings growth over the next three to four years.
(Extract from their Q3 letter)
tweet
Baron International Growth Fund on Meituan $3690 HK
Thesis: Meituan is a leading Chinese food delivery platform with over 70% market share and a strong local services super app, expected to deliver over 20% compound earnings growth over the next three to four years.
(Extract from their Q3 letter)
tweet