Anheuser-Busch InBev: Largest and Most Profitable Brewer Globally

January 10, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Frank Fischer of Shareholder Value Management presented his investment thesis on Anheuser-Busch InBev (US: BUD) at Best Ideas 2022.

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

Members, log in below to access the full session.

Not a member?

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:

Frank Fischer, born in 1964, is the CEO of Shareholder Value Management AG, where he is Chief Investment Officer (CIO). Frank Fischer is also a board member of Shareholder Value Beteiligungen AG. Until the end of 2005, Frank Fischer was managing director of Standard & Poor’s Fund Services (formerly Micropal GmbH) and was responsible for investment fund information and ratings. After completing his training as a banker at the Hessische Landesbank, he completed a degree in business administration at the University of Frankfurt with a degree in business administration. Mr. Fischer is married and has two children. He is the founder and director of the non-profit foundation Starke Lunge.

Equinox Gold: Fast-Growing Mid-Tier Producer at Steep Discount

January 10, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

William Thomson of Massif Capital presented his in-depth investment thesis on Equinox Gold (US: EQX) at Best Ideas 2022.

Thesis summary:

Equinox Gold is a mid-tier gold producer specializing in North and South American assets.

The firm has a top-tier management team that has successfully built numerous mines and a chairman/founder (single-largest shareholder) who built and ran the world’s largest publicly traded silver miner (Pan-American Silver).

The firm has a fully-funded growth pipeline that should double production by 2024, making Equinox one of the fastest-growing gold miners over that period.

The shares recently traded at 0.5x Will’s probability-weighted net asset value and at a steep discount relative to comparable peers.

audio recording

About the instructor:

Will Thomson is a Managing Partner at Massif Capital, a value-oriented investment partnership focused on global opportunities in energy, basic materials and industrials. We invest principally in businesses with long lived assets that generate predictable cash flows and require not only capital allocation acumen from management but also a keen focus on operational excellence. Our investment practice is primarily concerned with the nature of risk and value as it relates to protecting, enhancing and deploying the irreplaceable capital of our investors into a concentrated portfolio of economically productive assets.

IAC/InterActiveCorp: Well-Managed Holding Company at SOTP Discount

January 10, 2022 in Audio, Best Ideas 2022, Best Ideas 2022 Featured, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

David Marcus of Evermore Global Advisors discussed his approach to investing in special situations in family-controlled companies at Best Ideas 2022. He also presented his investment thesis on IAC/InterActiveCorp (US: IAC).

Thesis summary:

IAC/InterActiveCorp was formed in 1995 when Barry Diller took a controlling stake in Silver King Communications, an owner of twelve UHF television stations. Since then, the entity has followed a tried-and-true playbook for its portfolio companies — buy, build, scale, and ultimately spinoff. Eleven public companies have emerged from IAC, including Expedia (EXPE) and, more recently, Match Holdings (MTCH) in July 2020 and Vimeo (VMEO) in May 2021.

Today, IAC is comprised of category-leading businesses, including Angi Inc. (ANGI), Dotdash Meredith, and Care.com, among many others, ranging from early-stage to established businesses.

Management are proven value creators and are well-aligned with shareholder interests; Diller and CEO Joey Levin both own a substantial amount of IAC stock and long-term management incentive compensation is largely tied to the performance of the shares.

IAC continues to trade at a substantial discount to the sum of its parts, which should continue to compound over time. At a recent $130 per share there is ~50% upside to David’s ~$200 per share sum-of-the-parts value estimate.

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

Members, log in below to access the full session.

Not a member?

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:

David Marcus has more than 20 years of experience in the investment management business. He began his career at Mutual Series Funds, mentored by renowned value investor Michael Price, and rose to manage the Mutual European Fund and co-manage the Mutual Shares and Mutual Discovery Funds. He also served as director of European Investments for Franklin Mutual Advisors, LLC.

After leaving Franklin Mutual, David founded Marcstone Capital Management, LP, a long-short Europe-focused equity manager, largely funded by Swedish financier Jan Stenbeck. When Mr. Stenbeck passed away in 2002, David closed Marcstone and then co-founded a family office for the Stenbeck family; as an advisor to the family, he advised on the restructuring of a number of the public and private companies the family controlled.

He later founded and served as managing partner of MarCap Investors LP, the investment manager of a European small cap special situations fund, which he managed from 2004 to 2009.

Kaspi: E-Commerce, Fintech, and Payments Leader in Kazakhstan

January 9, 2022 in Audio, Best Ideas 2022, Equities, Ideas

Javier López Bernardo of BrightGate Capital presented his in-depth investment thesis on Kaspi KZ (UK: KSPI) at Best Ideas 2022.

Thesis summary:

Kaspi KZ is the leading Kazakh e-commerce company, with unassailable positions in fintech and payments processing. The three business lines are inextricably linked through Kaspi’s super app, an ecosystem that enjoys one of the best user engagements in the world and a very high penetration in the total Kazakh population.

Well-run platform businesses are extremely profitable and enjoy high barriers to entry, underpinned by strong network effects and winner-takes-all dynamics.

Kaspi has an undemanding valuation for long-term minded investors. At $119 per share, the company has a market cap of roughly $21 billion and a P/BV multiple of 22x. In light of Kaspi’s ROE of 116%, that implies a 4.8% yield assuming no growth.

Kaspi has still ample growth avenues for the next decade, which together can sustain 13% CAGR, or 16% if the international expansion is successful, with multiples on initial investment ranging between 4x and 5x over a decade.

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

Members, log in below to access the full session.

Not a member?

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:

Javier López Bernardo is currently Portfolio Manager (equities and high yield) at BrightGate Capital SGIIC, an independent asset management boutique company based in Madrid, Spain. He holds a Bachelor in Business Administration (major in finance) by the Universidad Complutense de Madrid, a Master in Corporate Finance and Investment Banking by the IEB and a Master in Economics by Kingston University, where he also earned a Ph.D. in Economics. His academic research on equity markets and growth theory has been published in leading international journals. Additionally, he has been a full-scholarship holder for two years by the Ramón Areces Foundation and he is a CFA charterholder. He is a lecturer for the CFA program and he also regularly delivers lectures in commodities and value investing.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Glass House Brands: Cannabis Company With High Optionality

January 9, 2022 in Audio, Best Ideas 2022, Equities, Ideas

Aaron Edelheit of Mindset Capital presented his investment thesis on Glass House Brands (Canada: GLAS, OTC: GLASF) at Best Ideas 2022.

Thesis summary:

There is a possibility that Glass House, which recently traded at around $4 per share, can earn more than $12 per share in cash flow when its new state of the art greenhouse is fully up and running and if — and yes, this is a big if — interstate commerce is allowed in the cannabis industry.

A caveat: interstate commerce is probably a long way off. As an option, the cash flow numbers are so enormous in an interstate commerce scenario that the upside potential of interstate commerce should be valued at something north of zero. Even if there is a 5% chance of interstate commerce happening, that option alone might be worth $12 per share (20 times $12 per share times 5%).

Even if interstate commerce never happens and if it is only allowed to sell in California, when Glass House gets to scale in its new state of the art greenhouse, it should generate somewhere between $2 and $6 per share in cash flow. This is still a stunning number and could send Glass House up 7 times and possibly more than 20 times from the recent share price.

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

Members, log in below to access the full session.

Not a member?

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:

Aaron M. Edelheit is the CEO and Founder of Mindset Capital, a private investment firm. Aaron also was the Chief Strategy Officer of FLO Technologies, after being one of the first investors in the company, helping the company grow from a pre-revenue startup to raising $28 million and launching in over 500 Home Depot stores. FLO was acquired in January of 2020 by Fortune Brands. In his previous role as CEO of The American Home, Aaron founded and grew a company from 16 rental homes to one that owned 2,500 single family rental homes and was sold in April 2015 to a publicly traded Real Estate Investment Trust. Aaron also founded and ran a successful money management firm, Sabre Value Management from 1998 to 2011. In 2018, IdeaPress published Aaron’s first book, The Hard Break: The Case for a 24/6 Lifestyle. The book makes the case for taking one day off from work, email and smartphones for a more productive, healthier and more creative life. Aaron currently serves on the board of Dignity Moves, which builds cost effective housing for those experiencing homelessness. He has also served on the boards of non-profits such as the Moishe House Foundation and Global Village Project. And he is also a member of Social Venture Partners in Santa Barbara, California. Aaron has also been featured and quoted in the Wall Street Journal, New York Times, Bloomberg, and CNBC among others and has given lectures on business and entrepreneurship in the U.S., Canada and South Africa.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Clorox: Cash-Generative Business With Favorable Long-Term Trends

January 9, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Bogumil Baranowski of Sicart Associates presented his investment thesis on The Clorox Company (US: CLX) at Best Ideas 2022.

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

Members, log in below to access the full session.

Not a member?

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:

Bogumil Baranowski is a founding partner of Sicart Associates, a New York City based boutique investment firm catering to families and entrepreneurs on both sides of the Atlantic and the Pacific. He has 17 years of investment experience, and holds a Master’s degree in Finance and Strategy from Institut d’Etudes Politiques de Paris (Sciences Po), and a Master’s in Finance and Banking from Warsaw School of Economics. He is the author of Outsmarting the Crowd – A Value Investor’s Guide to Starting, Building and Keeping a Family Fortune (2015), and Money, Life, Family: My Handbook: My complete collection of principles on investing, finding work & life balance, and preserving family wealth (2019). He is a TEDx Speaker, and a former Executive Board member of one of the oldest and most advanced Toastmasters International clubs in New York City, and an Instructor at MOI Global (The Community of Intelligent Investors).

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

ITC Limited: Diversified, Well-Managed Conglomerate in India

January 9, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Ashish Kila of Perfect Group presented his in-depth investment thesis on ITC Limited (India: ITC) at Best Ideas 2022.

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

Members, log in below to access the full session.

Not a member?

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:

Ashish Kila is a rank holder CA and MBA from MDI Gurgaon. He has worked with leading investment banks like Goldman Sachs & Morgan Stanley in their equity research division and now is the Director at Perfect Group. Ashish looks after the strategic functions of the group and manages the family office fund. Ashish has over the years conducted seminars on value investing, leadership, productivity and startups (angel investing) in prominent institutions like IIM (Calcutta, Indore), ISB (Hyderabad, Mohali), MDI Gurgaon, IBS Gurgaon, SSCBS, DSE, etc; forums like Octoberquest, MOI Global, CFA Society India; institutional firms like Fidelity, BNP Paribas MF, SBI MF, BOI AXA MF, Ambit House. Ashish & his family undertake several social initiatives via the group’s NGO – Perfect Foundation. The family is also actively involved with Bhaorao Deoras Sewa Nyas & is helping manage its two projects, Feeding 2000 people everyday free of cost where >40 lakh people have benefitted & Managing charitable patient attendant facilities across various hospitals in India i.e.~280 bed AIIMS Trauma Delhi, ~250 bed facility IGIMS, Patna , 300 bed near KGMC Lucknow and 800 bed AIIMS Jhajjar.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Centre Testing: Leading Testing and Inspection Provider in China

January 9, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

James Fletcher of Ethos Investment Management presented his investment thesis on Centre Testing International (China: 300012) at Best Ideas 2022.

Thesis summary:

Centre Testing International (CTI) is the largest player in the testing and inspection services industry in China, which is a structural growth industry growing at 2-3x GDP.

The company is especially strong in the life sciences segment, where it has 8% market share and is 2x bigger than any of their local competitors. TIC market size to GDP in China is 0.35% but growing quickly, and quite underpenetrated still (the global average is 2.5%).

Publicly listed TIC companies have proven to be long-term compounders due to their strong cash generation, wide moats, and structural growth. Global leaders such as SGS, Eurofins, Bureau Veritas, and Intertek are trading at 30x-40x P/E (ttm), with mid- to high-single digit topline growth. On the other hand, CTI can grow the top line at a 20% CAGR for the next five to ten years, and James forecasts that their market share will reach 1.8% from 1.0% in 2020.

CTI’s business model is so robust that since the IPO in 2009 the company has been in a net cash position and has financed M&A projects with internally generated cash. They earn the highest margins and have the strongest return profile in the industry, which they invest back into R&D and the salesforce.

CTI grew revenue by 30% in 2009 (financial crisis), 27%/19% in 2018/19 (US-China trade war), and 12% in 2020 (Covid-19 pandemic).

CTI is privately owned and well-managed compared to their main peers which are state-owned. Mr. Wan Feng, the founder, chairs the board, and Mr. Shentu Xianzhong has been CEO since 2018. He was formerly CEO at SGS China and is a well-regarded CEO in the TIC industry in China.

Trading at 52x 2021E P/E and 2% FCF yield, James forecasts double-digit annualized returns over the next five years and believes this exceptional business is attractive due to the overall sell-off in China.

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

Members, log in below to access the full session.

Not a member?

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:

James Fletcher is the founder of Ethos Investment Management. He is a portfolio manager with nearly two decades of equity research experience. Prior to starting Ethos Investment Management in 2021, James was Director and Senior Portfolio Manager of the EM SMIDcap fund at APG Asset Management where he oversaw $1 billion AUM through a concentrated, high-conviction approach. James earned a B.S. in Finance from Brigham Young University, where he graduated summa cum laude and with University Honors. He is a CFA charterholder. He is also the founder of Young Investors Society (www.yis.org), a non-profit organization that teaches financial literacy and investing concepts to over 8k high school students across the world.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Telsys: Global Leader in Growing Niche Market With High Margins

January 9, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

Omri Velvart of Legacy Value Partners presented his in-depth investment thesis on Telsys Ltd. (Israel: TLSY) at Best Ideas 2022.

Thesis summary:

Telsys Ltd. controls Variscite Ltd., the global leader in niche ARM-based Systems-on-Modules (SOMs), an addressable market of $1 billion, growing by 15% annually.

Founded in 2003 and evolving methodically with a unique focus over the years, Variscite has managed to establish an wide economic moat around its business. As a highly profitable company with software-like margins (operating margin of 40-45%), Variscite has built an impressive track record of reinvestment in growth capex and R&D, which has allowed the company to grab market share steadily, growing twice as fast as the market over the past decade.

The recent valuation is reasonable, and there are growing signs that the global chip shortage has created large pent-up demand for the company’s products.

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

Members, log in below to access the full session.

Not a member?

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:

Omri Velvart is the Founder & Chief Investments Officer of Legacy Value Partners. He elevates expertise in Software and Services ecosystems, global and local Category Winners and the Digital Economy. Established in 2016, LVP explores unmatched Quality, looks for Wide Economic Moats and partners with Great Management Teams in publicly listed equities in Israel and the U.S.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.

Emergent Biosciences: Positive Outlook After Major Setbacks

January 9, 2022 in Audio, Best Ideas 2022, Discover Great Ideas Podcast, Equities, Ideas, Member Podcasts

A.J. Noronha of Desai Capital Management presented his investment thesis on Emergent Biosciences (US: EBS) at Best Ideas 2022.

Thesis summary:

One of the last places A.J. expected to find a value opportunity is a company that had some of the most direct covid-related negative headlines of 2021. However, after further research, A.J. believes Emergent Biosciences may well be the rare exception and provide a compelling opportunity despite the large setbacks earlier in 2021.

EBS weathered the major vaccine manufacturing contamination event that became front-page news into a stronger partnership with JNJ, trades at a significant discount to intrinsic value, has both a diversified revenue-generating product line and a promising pipeline, and has strong alignment of management and shareholder incentives.

EBS appears prepared to provide vaccine solutions for either a pandemic or endemic situation over the forecast period, and also has travel health products that should benefit from a return toward normalcy.

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

Members, log in below to access the full session.

Not a member?

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:

A.J. Noronha, CFA has over ten years of investment management experience, and has worked closely with Mr. Desai since Desai Capital Management’s inception in 2013 with all aspects of the fund, with his primary responsibilities being equity research, due diligence, and developing investment theses for DCM’s portfolio.

He has been ranked as highly as #1 (Value), #6 (Long), and #9 (both Overall and North America) in SumZero’s independent analyst rankings, and his independent research on Dow Chemical was selected as one of their top ideas of 2015.. He served as an instructor for MOI Global’s Best Ideas 2018 and Wide Moat Summit 2018, and was an invited participant (non finalist) in the 2017-2018 Sohn Conference Foundation Idea Contests, 2017 SumZero/Van Biema Value Partners Idea Challenge, and 2019 SumZero Best Short Ideas Challenge.

Prior to DCM, Mr. Noronha gained investment experience working for a mid-market PE/VC fund, and also co-founded and served in a C-level role for a biomedical engineering startup. He earned a degree in Finance, magna cum laude, from the University of Notre Dame, where he was selected to be a member of the prestigious Applied Investment Management honors finance course where students manage a portion of the University endowment under the guidance of the Chief Investment Officer, and also holds a JD with Dean’s List honors & a concentration in business enterprise (selected coursework taken through the Kellogg School of Management) from Northwestern University. He is a proud CFA Charterholder, is an active Candidate Member of the CFA Society of Chicago & serves on its Professional Development Advisory Group Board, and is a member of Irish Entrepreneurs & Harvard Alumni Entrepreneurs.

The content of this website is not an offer to sell or the solicitation of an offer to buy any security. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment, or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information set forth on this website. BeyondProxy’s officers, directors, employees, and/or contributing authors may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated herein.
MOI Global