Weekly Snack #36
New Investment Pitches, General Research, and Tweets of the Week
Welcome to Weekly Snacks! This newsletter is home to a weekly compilation of new investment ideas, Twitter posts/threads, general research, and podcasts to help all investors generate ideas that they may have otherwise not been exposed to.
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Investment Pitches
TL;DR:
Another pitch from
where he shares his thoughts on Loungers (LGRS.L), a self-funded all-day cafe bar chain that operates in the U.K. The company is seeing multiple tailwinds such as growing AUV, sales, and new unit growth where they see the potential of ~660 new units. With a plan to boost margins and improve FCF, this illiquid micro-cap seems to have a very bright future.
TL;DR:
has had some pretty good ideas that I’ve come across which makes him a must follow in my book. He recently shared a new position of his, Auto Partner (WSE: APR), where he believes it’s a decade-long investment opportunity in a business that is capable of growing revenues in the high-teens for the better half of that period, and in the low-teens thereafter, with increasing annual profit margins. Consolidation in the EU auto parts industry is a big tailwind considering less than 1% of the market is owned by large-scale distributors vs 40% in the U.S.
TL;DR:
shared their thoughts on Innovative Solutions and Support Inc (ISSC), a manufacturer or avionic systems and components for areospace applications. The founder recently passed away and new management has taken over and is actively pursuing new acquisitions of bolstering the company. Harhsil highlights three different scenerios that he believes can potentially happen where the upside reveals a nice R/R opportunity. If his numbers are correct, he believes an upside of 85% is possible.
TL;DR:
Given all the continued hype around Hims and Hers Health (HIMS) and my background working at their competitor, I shared my updated thoughts around the GLP-1 side of the business. The updated commentary revolve around the recent news of LLY tirzepatide shortage ending, what WW International (WW) has hinted regarding their GLP-1 business and how that effects the numbers going forward.
Tweets of the Week
General Research
Podcasts
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
Thanks for the feature!