Over the past few weeks, I've covered presentations from the Value Investing Seminar in Italy that I thought would be the most interesting to my readers.
These include my pitch for Eli Lilly (LLY)... the bull case and bear case for HelloFresh (HFG.DE)... Flutter Entertainment (FLUT)... Booking Holdings (BKNG)... Fairfax Financial (FFH.TO)... and the AI infrastructure boom.
Today, I'd like to provide links to the remaining eight presentations, with brief comments and excerpts...
1) My friend and former hedge-fund partner Glenn Tongue pitched Netflix (NFLX) and Domo (DOMO) – you can view his presentation here.
Glenn and I collaborated on the section on Netflix, drawing from my July 6 and July 7 e-mails. Since then, the company reported disappointing earnings, and the stock is down another 8%. We like it even more at these levels.
Domo is a struggling microcap that makes business-intelligence software. As you can see in the slide below, its stock has collapsed over the past three years:
But Glenn showed it has turned free-cash-flow positive:
He predicted that the company would announce a sale or other transaction in the near future.
Sure enough, last Wednesday, Domo announced an "Agreement to Sell Substantially All Assets and Certain Liabilities to Progress Software for $400 Million," sending the stock up 25% on Thursday. But it has trickled back to the price at which Glenn recommended it, so he isn't selling.
This idea is too small for me to spend much time on, but it's an interesting speculation.
2) Financial blogger Beile Grünbaum pitched Uber Technologies (UBER) – presentation here. She summarized her thesis in five bullet points:
I've written many times about Uber (most recently on March 2) and think it's a great idea.
3) Portfolio manager Lukasz Thieme of CoVictor Capital pitched Louisiana-Pacific (LPX), which makes housing-construction products – presentation here.
In his thesis summary, he argued that this is a high-quality business with pricing power:
The stock has been hit hard because the U.S. housing market is in the dumps, but Lukasz made a strong case that LPX is well positioned to benefit when it recovers.
4) Peter Krah, the founder of investment group German Mining Networks, pitched Canadian microcap Millennial Potash (MLP.V) – presentation here.
His summary highlights the technical chart, capital structure, and differentiators of Millennial, which is developing Africa's first potash mine in Gabon:
Peter made a compelling case, but mining stocks are very far outside of my circle of competence.
5) Nicolas Van Broekhoven, the managing director of Olija Holdings, pitched another Canadian mining microcap, Mackay Gold & Silver (MACK.V) – presentation here.
He thinks Mackay, which is developing the Comstock Lode in Nevada, could be a 10-bagger for several reasons:
As with Millennial Potash, this is far outside my circle of competence.
6) Independent investor Gianfranco Rosati pitched Italian food company NewPrinces (NWL.MI) – presentation here.
He asserts this is a cash-generative company with a stock trading at a mid-single-digit multiple of free cash flow. He also thinks highly of Executive Chairman Angelo Mastrolia, highlighting the company's growth under his leadership:
Gianfranco does a nice job of analyzing a complex business that deals with manufacturing, direct retail distribution, and many different brands.
7) Santa Lucia Asset Management CEO Florian Weidinger pitched Indonesian microfinance lender BTPN Syariah (BTPS.JK) – presentation here.
His summary highlights the upside of the company's geography:
It's an excellent presentation, but I don't know enough about this type of stock to form an opinion on it.
8) Last but not least, private investor Norman Rentrop pitched ad pepper media (APM.DE) – presentation here.
Based on the data below, he argued that this German microcap doesn't "reflect favorable acquisitions":
With a market capitalization of only $73 million, this is idea too small for me to look at.
Thanks to all the presenters for giving me permission to share their ideas!
Best regards,
Whitney
P.S. I welcome your feedback – send me an e-mail by clicking here.
P.P.S. After two days in Vienna, we did a leisurely, day-long drive to Salzburg on Sunday. We stopped in the scenic towns on Dürnstein, where I hiked to the castle ruins overlooking the town, and Melk, where we toured the magnificent 937-year-old Melk Abbey:
