Welcome to another edition of the Capital Employed Newsletter.
If you’ve not done so already make sure to check out the Q3 2026 Fund Letters Round-Up - 106 letters have been added so far. It’s a treasure trove of insights and ideas.
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Exclusive stock pitches by fund managers →
#144 - Jack Pailing (Colebrooke Partners) 📗
#143 - Orlando Muyshondt (Elena Partners) 📗
#142 - Christian Putz (ARR Investment Partners) 📗
#141 - Dylan Marrello (Marrello Capital) 📗
#140 - Dean and Deiya (Pernas Capital) 📗
#139 - Sébastien Lagarde (Alphajet Europe Microcap Fund) 📗
BEST IDEA AWARD FOR THIS ISSUE 🏆
Greystone Capital on Strata Critical Medical 🇺🇸
An organ transplant and logistics business that has been left for dead given its microcap status, prior history as a failed SPAC, strategy shift and shareholder turnover.
Strata has carved out a unique niche in organ transplant, which should be aided by strong tailwinds in new technology adoption and other industry changes that should benefit them over time.
Strata trades at around $4.70/share, with around 90M shares outstanding, giving it a market cap of $425M. There is $30M in net cash on the balance sheet, so the EV sits around $395M.
Management believes they can grow EBITDA 30% per year for the next few years through a combination of organic growth and M&A, which would take EBITDA from $34M this year to $126M
by 2031.
Applying a 12x multiple and accounting for some net cash and dilution gets me to around $14.5/share, or 211% upside, driving a 26% 5-year IRR. A round-up of the best ‘fresh-off-the-press’ stock pitches…
North America
Value Don’t Lie on Truist Financial 🇺🇸
Financial services company. New CEO, $1m insider buy, and already shaking things up.
Curreen Capital on Clarivate 🇺🇸
Sells access to patent and scientific research databases to customers including patent lawyers, academics, and research institutions.
The Big Berbowski on Quantum Corp 🇺🇸
A supplier of enterprise storage hardware and data-management software. It is not a quantum computing company.