Weekly Snack #16
Champagne, ad-tech, staples, and 'concrete' vision
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Investment Pitches
TL;DR:
over at shared his thoughts on a French champagne company called, Laurent-Perrier (LPE.PA). The company has been around for over 200 years and Zeljko highlights a number of reasons in his thesis such as high insider ownership (through the Nonancourt family) with controlling shares and voting rights, Lindy effect, outpaced price increases relative to the overall industry, and its valuation. Much of his valuation expectations does come from an upsized multiple to catch up with its peers as well as an EPS CAGR of ~9% over the next decade. Short, simple, and easy pitch that’s different from your everyday tech company.
TL;DR:
shared their thoughts on AppLovin APP 0.00%↑, and why it’s still growing well and could reward shareholders in the future despite taking a blow from Apple’s ATT policy. Furthermore, their growth in the software side of things has offset decline in the gaming portion of the business, but because the software side contributes 87% of total EBITDA, the author believes a re-rating should occur. Currently at ~9x EBITDA, peers are (according to the authror) are nearly 2 - 3x that ratio. Adtech really isn’t my thing but see for yourself.
TL;DR:
published their thoughts on Procter & Gamble PG 0.00%↑ with a buy rating. The author beleives that the company’s strategy in prioritizing daily use goods (personal care + home care) will allow it to benefit against other staples who include food and beverages. Current management is reinforcing its bets on its premium, high IP names that driven consumer spending choices upon selection. With a return to its long-term growth and no valuation deterioration, the author suggests that the company can generate an annualizes retern of ~12% over the next 3 years.
TL;DR:
Featuring another past author,
published thier thoughts on National Vision EYE 0.00%↑. To caveat their post, it’s once again rather long but not nearly as long as their RH 0.00%↑ pitch. EYE is one of the largest opitcal retailers in the country that provides access to eyeglasses, contact lenses, and exams to lower end consumers. Bristlemoon believes that EYE is a short under the their thesis that lower end consumers are getting squeezed at their wallet, Walmarts contract termination will take a huge hit to earnings (currently 17% of revenues), wage inflation with staff + shortages, as well as their leverage.
TL;DR:
In addition to the aforementioned author,
is another author who we’ve had on here before. In all honesty, he’s got some weird ass ideas but ideas like that make not only for good reading entertainment but also good ideas. He recently published his thoughts on Eagle Materials EXP 0.00%↑, a leading U.S. supplier of construction and building materials. The author believes that with the companies share purchase authorization (currently ~19.5% of market cap), consistent dividends + acquisitions, and pricing power, tailwinds for the industry through a supply/demand imbalance can really benefit this company and thus, investors.
Tweets of the Week
General Research
Podcasts & Interviews
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
Love these weekly "snacks", Paul. Lots of useful information here. Thanks for linking to my article!