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Amrest: Owner-Operated, Growing European Fast Food Operator

October 14, 2021 in Audio, Diary, Equities, Europe, European Investing Summit 2021, Ideas

Jean-Pascal Rolandez of The L.T. Funds presented his investment thesis on Amrest Holdings (Poland: EAT) at European Investing Summit 2021.

Thesis summary:

Amrest, as in “American Retail System”, is an extraordinary success, which paradoxically is not a well-known European mid-cap for many reasons. Yet, it is one of its fastest-growing mid-cap companies.

From a strong Central European base, Amrest was derailed by COVID in the race to become one of the leading restaurant operators in Europe. After a near-bankruptcy experience in mid-2020, Amrest is now recovering strongly and is much stronger.

With a market cap of EUR 1.5 billion and a free float of 28%, Amrest should post EUR 2.1 billion in sales in 2022 (higher than in 2019), healthy profitability, a firm financial footing, and fast top-line growth.

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About the instructor:

Jean-Pascal Rolandez is the manager of The L.T. Funds, a Geneva-based investment firm focused on a buy and hold strategy based on a limited number of European stocks with a 5+ year investment horizon. Jean-Pascal has more than 25 years of equity investment experience and has founded the first investment club at the leading French business school ESSEC. Prior to establishing The L.T. Funds, Jean-Pascal held various executive positions at BNP Paribas for 22 years, including as Paribas’ French equity strategist.

Ubisoft: Founder-Led Turnaround in Attractive Video Gaming Business

October 14, 2021 in Audio, Diary, Discover Great Ideas Podcast, Equities, Europe, European Investing Summit 2021, European Investing Summit 2021 Featured, Ideas, Member Podcasts, Transcripts

Pieter Hundersmarck of Flagship Asset Management presented his thesis on Ubisoft Entertainment (France: UEN) at European Investing Summit 2021.

Thesis summary:

Ubisoft is a founder-led video gaming business founded in France in 1986 by the five Guillemot brothers. Yves Guillemot (CEO) still leads the business.

Ubisoft is facing three major headwinds, which provide a profit-making opportunity. The first is a dramatic change in its game development strategy, with a focus on live games and mobile games, which has resulted in delays to some its largest franchises. The second is inefficiency in its operations, with too little “subscription” or recurring revenue from in-game sales versus one-off game purchase revenue, leading to choppy revenue, as well as a boated cost base from in-sourcing all of its own game development, which holds back profitability. Third, the company is grappling with various allegations of discrimination and harassment across its workplaces.

The investment case for Ubisoft is a turnaround, with limited downside and high potential upside. The company should earn EUR 2.40 per share in March 2022, putting it on 20x earnings, a deep discount to the sector and its own history. On a price-to-sales multiple, the company screens cheaply as a buyout target.

The full session is available exclusively to members of MOI Global.

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Thank you for your interest.  Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:

About the instructor:

Pieter Hundersmarck is the global portfolio manager for Flagship Asset Management, a specialist global investment management boutique based in Cape Town, South Africa. Flagship (est. 2001) is one of South Africa’s most awarded boutique asset managers, with deep experience across asset classes in developed and emerging markets. Pieter has been investing internationally for over 15 years. Prior to Flagship, he worked at Coronation Fund Managers for 10 years, and also co-managed a global equities boutique at Old Mutual Investment Group. Pieter holds a BCom (Economics) from Stellenbosch University and an MSc Finance from Nyenrode Universiteit in the Netherlands.

Read a recent article by Pieter, entitled “Six Reasons Why Boutique Investment Managers Outperform”.

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