17 Superb Stock Pitches (16th-30th March)⚡
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Below are stock pitches we’ve enjoyed reading from the past two weeks. →
Frontier Communications (FYBR)
Written by
Betting the ranch on turning copper into gold. Frontier communications is a broadband focused communications company that serves 3.1M customers through their network of copper and fiber infrastructure.
Kaspi (KSPI)
Written by Noodermeer Capital
Over past three years, Kaspi has grown revenues and earnings at 40%+ annually. They should be able to achieve over 20% revenue growth over the next five years due to the opportunities in adding and growing features on the platform. The company has a 46% profit margin and is currently available for ~10x normalized earnings.
Societal CDMO (SCTL)
Written by
A microcap (enterprise value of~$125M) contract development and manufacturing organization- or “CDMO”. SCTL is an above-average business with an average valuation that is hitting some important inflection points the market may not be catching onto just yet.
tinyBuild (TBLD)
Written by Firm Returns
A video game developer and publisher with global operations headquartered in the US. The company listed on AIM. It doesn't take much torturing of the numbers to see this company is incredibly cheap.
PagSeguro (PAGS)
Written by
A Brazilian payment processor and online bank and potential compounder. PAGS trades at about 8x through earnings, has been growing quite rapidly and could see explosive short term earnings growth if they can bring down their financing costs.
Rover (ROVR)
Written by
Rover is the world’s largest network of pet sitters and dog walkers. Rover is the clear category leader with ~10x+ more scale than its closest competitor, and possess the attributes of a high quality marketplace business.
Floor & Decor (FND)
Written by Iceman Capital
A leading hard surface flooring retailer in the US. The company sells luxury vinyl tile, laminate, hardwood and natural tile flooring to residential and commercial end markets. The firm is well positioned to continue growing its market share over the next 10y, and competitors are not structurally set up in way to compete effectively with them.
Dream Unlimited (DRM)
Written by
A developer of office and residential assets in Toronto.
Melcor Developments (MRD)
Written by
More Dirt Cheap Real Estate: Melcor Developments trades for 30% of book value. Plus substantial ownership by the founding family, and a 5%+ yield.
Kistos (KIST)
Written by
A company with a notable chairman and capital allocator, Andrew Austin. Initially, I came across this company through a pitch on the Value Investors Club and after conducting further research, I found the assets to be cheap and the management to be excellent.
Grupo BMV (BOLSAA)
Written by Mokapu Capital
The largest financial exchange in Mexico and the second largest in Latin America. BMV is trading at a 50% discount to peers which I think makes it rather attractive. As the business is high quality with great returns on capital, fantastic balance sheet, and a management team that probably won’t light money on fire.
Richelieu Hardware (RCH)
Written by
Serial acquirer and North American's leading distributor, importer and manufacturer of speciality hardware (kitchen cabinet, furniture, door, etc.) is priced attractively at only 12 times earnings.
Henkel (HEN)
Written by Value-investor.net
Henkel is a German chemical company. It’s segmented into two business units: Consumer goods and adhesive technology with both generating approximately 50% of the companies revenue. Despite the cyclical character of parts of the business the company is a defensive investment with a strong balance sheet.
Cyteir Therapeutics (CYT)
Written by
A busted biotech trading at a 59% discount to liquidation value.
Elixirr International (ELIX)
Written by
Elixirr is an international consulting firm founded by Stephen Newton (CEO) & Graham Busby (CFO), with the intention to grow into a global consultancy firm to rival the likes of Accenture, IBM, Mckinsey and the like.
The Restaurant Group (RTN)
Written by
Egregiously cheap with improving fundamentals and activists circling.
Italian Sea SpA (TISG)
Written by
An Italian small-cap specialising in the construction and maintenance of large luxury yachts. It is the Italian leader in yachts over 50 meters and the fourth-largest producer worldwide. TISG is led by the founder and maximum shareholder and has agreements with renowned brands such as Lamborghini and Giorgio Armani.
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Disclaimer
This article is for informational and educational purposes only, and should not be seen as investment advice. Please do your own research before investing in any company mentioned.
Thanks for sharing my write-up, Jon.
Thank you very much for the mention!
Italian Sea Group's thesis is very detailed, but if you have any questions about it or any of the others on the website (the team publishes one every Sunday - they are all available on the website) feel free to ask us! Thanks!