Welcome to Weekly Snacks! This newsletter is home to a weekly compilation of new investment ideas, Twitter posts/threads, and general research to help all investors generate ideas that they may have otherwise not been exposed to.
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Investment Pitches
TL;DR:
I’ve followed Conor for years now through his
newsletter and he and I have also exchanged thoughts and opinions on a recent piece of his, Kura Sushi (KURA). While I’ve taken the short side of this trade in the past, Conor has taken the other leg, being bullish on the name and it’s prospects. Conor highlights the growth of the company in this article and how a few KPIs are improving, however, this is not with some continued issues on expecations and other financials. It’s an interesting restaurant play if you’re looking for new options.
TL;DR:
I came across an idea on Theseus Pharmaceuticals (THRX) stemming from a liquidation value trade by
. This reminds me a lot of my Latch (LTCH) liquidation trade earlier in the year. For this post, the author was running off the back of a recent announcement of the company laying off 72% of their staff and looking for alternatives to maximize shareholder value. He breaks down what value is left based on cash burn and recent run up on price. Based on his math, there’s still a decent amount of value still left on the table for anyone looking for a special situation.
TL;DR:
While not the most detailed pitch, I was intrigued by Avon Protection Plc (AVON). They’re a company that basically makes respiratory protection equipment for military, law enforcement and fire personnel. While not the most sexy company out there, it’s an interesting one if you believe the need for continued use of respiratory and in general, helmets, will be a continued issue.
makes a call on the combat helmets potentially coming in to replenish stockpiles from the Ukraine/Russian war, lots of insider buys, and the recent CEO who has partaken in a few turnarounds already. Might be of some interest for someone looking into a niche business.
TL;DR:
I came across an older article on McKesson (MCK) and their take on it with GLP-1s. At first, it wasn’t because they’d have a hand in any of it but rather McKesson makes its money by delivering medicines to pharmacies and hospitals. MCK transportation business is a growing one too where the CDC says nearly half of all Americans used at least one prescription drug in the past month, while nearly a quarter used three or more. With the potential explosion of weighloss drugs, companies supplying them like NVO or LLY will certainly benefit MCK. With $5 billion in FCF in their last FY, a new $6 billion in share repurchase program bringing the total to $9 billion, this might be an ancillary play on the tail of GLP-1s.
Tweets of the Week
General Research
Appreciate you taking the time to read Weekly Snacks. I hope you have found at least some of these links to be interesting enough to dive into yourself.
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Until next week,
Paul Cerro
Great write up--love the format. New subscriber here!