Offshore
Photo
Finding Compounders
Low Risk, High Uncertainty
During his recent talk, Mohnish Pabrai (@MohnishPabrai )talks about how he came across Consol Energy which currently is 14% of his US portfolio .
The story starts in 2003/04 with IPSCO.
IPSCO is a tubular steel manufacturer in the US and Canada and when Pabrai came across it had no debt, had $15 per share in cash and was selling for around $40/ share.
IPSCO , because they had purchase orders , had extreme clarity with what the earnings of the next two years would be and they were going to be $15 for each year for the next two years .
So if you look at the cash and the next two years of earnings you are sitting on $45/ share for a stock selling for $40/share.
The market however didn’t see the value as it was wary of the uncertainty as they didn’t know what will happen to earnings in Year 3.
Mohnish bought in and a year later IPSCO announced another year of $15/ share of earnings.
Mohnish ended up exiting at around $154 /share after a Swedish company offered to buy IPSCO at $160/share
tweet
Low Risk, High Uncertainty
During his recent talk, Mohnish Pabrai (@MohnishPabrai )talks about how he came across Consol Energy which currently is 14% of his US portfolio .
The story starts in 2003/04 with IPSCO.
IPSCO is a tubular steel manufacturer in the US and Canada and when Pabrai came across it had no debt, had $15 per share in cash and was selling for around $40/ share.
IPSCO , because they had purchase orders , had extreme clarity with what the earnings of the next two years would be and they were going to be $15 for each year for the next two years .
So if you look at the cash and the next two years of earnings you are sitting on $45/ share for a stock selling for $40/share.
The market however didn’t see the value as it was wary of the uncertainty as they didn’t know what will happen to earnings in Year 3.
Mohnish bought in and a year later IPSCO announced another year of $15/ share of earnings.
Mohnish ended up exiting at around $154 /share after a Swedish company offered to buy IPSCO at $160/share
tweet
Offshore
Photo
Librarian Capital
Pernod Ricard $RI likely doesn't have LATAM & Caribbean issue as Diageo $DGE
RI reports US and LATAM in single "Americas" region
Americas sales -7% organic in FY24Q1-3
Also -7% organic in H1 when US also -7%
So LATAM decline likely -7%
US is 19% of sales; Americas 28% (FY24H1) https://t.co/OIGdAwZzWb
tweet
Pernod Ricard $RI likely doesn't have LATAM & Caribbean issue as Diageo $DGE
RI reports US and LATAM in single "Americas" region
Americas sales -7% organic in FY24Q1-3
Also -7% organic in H1 when US also -7%
So LATAM decline likely -7%
US is 19% of sales; Americas 28% (FY24H1) https://t.co/OIGdAwZzWb
tweet
Offshore
Photo
Hidden Value Gems
RT @HiddenValueGems: Quote of the day #54
#Stocks #Investing #StockMarket https://t.co/u44TuCok4B
tweet
RT @HiddenValueGems: Quote of the day #54
#Stocks #Investing #StockMarket https://t.co/u44TuCok4B
tweet
Offshore
Photo
Brandon Beylo
I'm seeing a lot of negative/bearish sentiment around Uranium on here lately.
Fundamentals remain strong.
Technicals starting to look attractive, too.
$U.UN #uranium https://t.co/fch0RI1zYd
tweet
I'm seeing a lot of negative/bearish sentiment around Uranium on here lately.
Fundamentals remain strong.
Technicals starting to look attractive, too.
$U.UN #uranium https://t.co/fch0RI1zYd
tweet
Offshore
Photo
Finding Compounders
Aswath Damodaran on the shortfalls of ROIC
Source: @MT_Capital1 https://t.co/aHfB03tI5d
tweet
Aswath Damodaran on the shortfalls of ROIC
Source: @MT_Capital1 https://t.co/aHfB03tI5d
tweet
Offshore
Photo
iinvested
2Q'24 Vulcan Value Partners on $PLNT, $QRVO, $KMX,
https://t.co/x8sPnxBizA
More fund letters here:
https://t.co/WRGkdL2eBG https://t.co/lYYYmCf96c
tweet
2Q'24 Vulcan Value Partners on $PLNT, $QRVO, $KMX,
https://t.co/x8sPnxBizA
More fund letters here:
https://t.co/WRGkdL2eBG https://t.co/lYYYmCf96c
tweet
Offshore
Photo
Brandon Beylo
RT @adayeoyh: whenever I meet anti-capitalists in sf who profess to be advocating for the poor, I wish I could show them this chart and say “capitalism and technological progress have brought billions of people out of extreme poverty and suffering over the last 200 years. ofc it’s not perfect, but it’s the best system we have for human flourishing. is this what you wish to stop?”
tweet
RT @adayeoyh: whenever I meet anti-capitalists in sf who profess to be advocating for the poor, I wish I could show them this chart and say “capitalism and technological progress have brought billions of people out of extreme poverty and suffering over the last 200 years. ofc it’s not perfect, but it’s the best system we have for human flourishing. is this what you wish to stop?”
tweet
Hidden Value Gems
An interesting take on the economics of Olympic games 🥇by @azimbalitw at @joincolossus.
Here are my takeaways 🧵👇
1️⃣The price: The Paris 2024 Olympics is expected to cost $9B, which is an “improvement” over previous games. The 2020 Tokyo Olympics cost $35B, and the 2014 Sochi Winter Games an astounding $60B.
1/10
tweet
An interesting take on the economics of Olympic games 🥇by @azimbalitw at @joincolossus.
Here are my takeaways 🧵👇
1️⃣The price: The Paris 2024 Olympics is expected to cost $9B, which is an “improvement” over previous games. The 2020 Tokyo Olympics cost $35B, and the 2014 Sochi Winter Games an astounding $60B.
1/10
tweet