Nathaniel Leach of LBW Wealth Management presented his in-depth investment thesis on Liberty Sirius XM (US: (LSXMA/B/K) at Best Ideas 2019.

Thesis summary:

Liberty Sirius XM is a tracker stock of Liberty Media Corp and one of the entities managed by John Malone and Greg Maffei. Its main assets consist of a ~71% interest in Sirius XM Holdings, a ~70% interest in Sirius XM Canada, and ~$1.05 billion of Pandora Media and iHeart Media bonds.

The largest asset, Sirius XM Holdings, announced in September of this year an intention to acquire the portion of Pandora Media it did not already own by issuing Sirius XM stock. The market did not react well to the news and Sirius XM’s stock has since dropped ~15%. The shares trade at a ~33% discount to NAV.

Liberty Sirius XM is an attractive vehicle to take advantage of the recent price weakness and NAV discount and buy Sirius XM at a discount to intrinsic value.

Listen to this session:

slide presentation audio recording

About the instructor:

Nathaniel Leach grew up in western Wisconsin and has been investing in the stock market since high school. In 2003, he attended Kalamazoo College and graduated with a B.A. in History. His degree encouraged him to conduct diligent research in a disciplined and efficient manner of any concept. In 2008, he enlisted in the U.S. Marine Corps. After completing active duty in 2012, with honorable character, he entered the RIA industry as a Securities Analyst at a local wealth management firm. He spearheaded multiple initiatives in operations, compliance, and trading as he steadily educated himself further as a value investor. Nathaniel has rigorously studied the great value investors, including, but not limited to: Benjamin Graham, David Dodd, Warren Buffett, Charles Munger, Philip Fisher, Mohnish Pabrai, Seth Klarman, and Joel Greenblatt. Nathaniel resides in Madison with his wife Chaoying.