Jonathan Isaac of Quilt Investment Management presented his thesis on United States Lime & Minerals, Inc. (US: USLM) at Wide-Moat Investing Summit 2024.
Jonathan had previously presented USLM at Wide-Moat Investing Summit 2018.
Thesis summary:
United States Lime & Minerals, Inc. is in a unique position to profit from the long-term consequences of subpar transportation infrastructure. In the lime and limestone industry, government regulations and public opinion can keep competitors at bay, and, for existing operations, transportation constraints can shape the radius of economic distribution. This means that location matters, as it would be for any resource that is significantly heavier than it is expensive. Luckily for USLM, its operations are exceptionally well-placed, with proximity to the dramatic population growth and urban sprawl of the Dallas-Fort Worth Metroplex. Moreover, the company is positively impacted by measures to increase infrastructure spending.
As a small regional player in a concentrated and consolidating industry, USLM is a trophy asset. The company’s unique locational advantage in the Texas lime market and impressive operating metrics could attract a buyer. The alignment of a transportation infrastructure boom time with the increasing age of those with influence within USLM may come at the right time—for the incentives of USLM’s leadership and outside investors.
Disclaimer/Disclosure: Quilt Investment Management, LLC currently (as of June 26th, 2024) holds United States Lime & Minerals (ticker symbol “USLM”) in client accounts and may transact in the security, as well as any other security mentioned, without future updates. USLM is often relatively illiquid, and can trade at a wide bid/ask spread. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of specific securities, investments, or investment strategies. Additionally, the information should not be construed as Quilt Investment Management, LLC’s solicitation to effect the rendering of personalized investment advice for compensation, over the internet or otherwise. This information is not intended to provide investment, tax, or legal advice. We make no warrantees for our interpretations or calculations, and these interpretations may include opinions that may or may not be accurate or complete. We are not obligated to update any forward- looking statements, and the future may hold events no one can foresee. This is not a research report and/or a recommendation. Investments involve risk and, unless stated otherwise, are not guaranteed. Always be sure to first consult with a qualified financial adviser and/or a tax professional before investing. Past performance is not indicative of future performance.
Jonathan Isaac is President and Portfolio Manager of Quilt Investment Management, LLC. Quilt Investment Management, LLC is a registered investment adviser with an office in Portland, Oregon. Registration does not imply a certain level of skill or training.
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About the instructor:
Jonathan Isaac is President and Portfolio Manager of Quilt Investment Management, LLC, a registered investment adviser in Portland, Oregon.
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