Raphael Moreau of Amiral Gestion presented his in-depth investment thesis on Reno De Medici (Italy: RM) at Best Ideas 2018.
Reno de Medici, with a market cap of €200+ million, has a number-two position in the European recycled-fiber cartonboard market. Historically a poor performer in an industry where the leader enjoys both high and stable profitability and valuation, Reno de Medici has been in the process of tackling the reasons for its underperformance. After a long journey of shutting weak mills, the company appointed a new CEO alongside simplifying the group’s structure to make the organization more efficient. The plan is now to make the different parts of the group work together and extract the associated network synergies, and accelerate the sharing of industrial best practices within the group. The purpose is to get close or reach the leader’s operating metrics. To what extent the latter is possible, it is unclear, but Raphael has strong confidence that the current measures are going to generate significant improvements to the company’s performance. The recent stock price prices in essentially no improvement to current results, so risk appears contained. In a best-case scenario in which the company reaches the leader’s profitability, Raphael estimates the upside at close to 100%.
About the instructor:
Raphael Moreau made his first investment in the French stock market in 1998. Rapidly won over by a passion for investing and reading the writings of Warren Buffett, he joined Amiral Gestion in 2008 following the completion of his Master at ESSEC Business School and experiences in sell-side research at UBS and fixed income analysis at CACIB. Nowadays, Raphaël focuses on European small caps. Founded by François Badelon, Amiral is an independent employee-owned asset management firm based in Paris. Amiral’s single goal is sustained performance with minimum risk based on the firm’s value investing approach.
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 Author: MOI Global Editorial Team
The MOI Global Editorial Team, led by John Mihaljevic, CFA, includes community builders, event organizers, writers, editors, research associates, security analysts, and fanatical member support advocates. Our sole purpose is to serve the members of MOI Global as well as we possibly can in order to help them learn, invest intelligently, and build lifelong friendships with like-minded people.
Who is MOI Global? In recent years, The Manual of Ideas has expanded to become more than simply “the very best investing newsletter on the planet” (Mohnish Pabrai). We are now a thriving global community of intelligent investors, connected through great ideas, thought-provoking interviews, online conferences, live member events, and much more.
Members of MOI Global enjoy complimentary access to a growing array of resources and content related to the art of intelligent investing. Members also enjoy preferential access to selected offline events as well as exclusive access to other events hosted by MOI Global, including the Zurich Project Summit, the Latticework Conference, and Ideaweek.
More posts by MOI Global Editorial Team