Yet Another Value Podcast Andrew Walker

Welcome to the July 2024 edition of Andrew's Random Ramblings on the Yet Another Value Podcast. Once a month, Andrew will share thoughts on a few topics - this episode includes: small cap performance, buybacks, stock price drives narrative, CEO changes, due diligence on companies you don't like (i.e. don't like the product or service personally), alternative data and idea dinners.


Posts mentioned during pod:

On the stress of market melt ups: https://www.yetanothervalueblog.com/p/weekend-thoughts-the-stress-of-market

On stock prices driving narrative: https://www.yetanothervalueblog.com/p/weekend-thoughts-bonus-stock-prices

Chapters:

[0:00] Introduction to Andrew's Random Ramblings + Episode sponsor: Tegus

[2:18] Small cap performance, buybacks

[5:15] Stock price drives narrative

[8:35] CEO changes

[10:42] Due diligence on companies you don't like (i.e. don't like the product or service personally)

[16:28] Alternative data

[18:55] Idea dinners

Today's sponsor: Tegus

If you’ve been reading my newsletters, you know how often I rely on Tegus for my research. It’s truly revolutionized how I get up to speed on new industries and companies. Tegus has the largest transcript library in the world, with over 75% of private market transcripts. Whether you’re curious about AI, biotech, or any niche market, Tegus has the insights you need.

What sets Tegus apart is its all-in-one platform. It’s packed with expert call transcripts, management checks, panel calls, and in-depth financial data. No more jumping between different services or piecing together fragmented data. With Tegus, everything is right at your fingertips.

The best part? The insights you get are from the very people shaping the industries you’re interested in. You’ll find perspectives from insiders and executives that you simply can’t get anywhere else.

To see Tegus in action and understand why it’s my go-to resource, visit Tegus.com/value – that’s T-E-G-U-S dot com slash value. Trust me, once you try Tegus, you’ll never look back.

Marc Rubinstein, Founder and Editor of the Net Interest Newsletter (link to substack below), is back on the podcast to discuss his article titled, "The Trump Trade" and deep dive on Fannie Mae $FNMA.

For more information about Marc Rubinstein, please visit: https://www.netinterest.co/

Article on Trump Trade: https://www.netinterest.co/p/the-trump-trade

Chapters:

[0:00] Introduction + Episode sponsor: Daloopa

[1:40] Background and history of $FNMA

[17:07] Turning point in 2012 (background cont'd.)

[20:19] $FNMA privatization argument from last 10 years

[29:54] "The Trump Trade" and $FNMA

[42:03] Why didn't Trump privatize in first term / if Trump wins 2nd term, what happens if he's going to pursue a privatization plan? / what is the most likely scenario

[53:50] Final thoughts

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John Haskell, CIO at Atla Capital Management, joins the podcast to share his thoughts on international real estate investing, emerging markets and ESR Group Limited ($1821.HK).

For more information about Atla Capital Management, please visit: https://www.atlacap.com/

Chapters:

[0:00] Introduction + Episode sponsor: Fundamental Edge

[2:22] International public real estate investing

[11:00] Taxation on global REITs / emerging markets

[17:54] John's most interesting market(s) right now / Vietnam overview

[21:58] ESR Group Limited thesis overview and why interesting to John

[27:12] Why has the stock not worked (since it's high in 2021) / how did John get comfortable with owning ESR

[36:06] Starwood investment / potential ESR buyout / how does John think ESR take out plays out

[45:54] ESR valuation

[55:54] Related party transactions and how do you have faith that they are done in fair value / final thoughts

Today's episode is sponsored by: Fundamental Edge

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It's time to welcome back Chris DeMuth for his monthly state of the markets. For this June 2024 edition, Chris shares his thoughts on: election and election trades, $LQDA, Russell Rebalance arbitrage, Burford $BUR / Security National $SNFCA, Presidential Debate and implications for investing.

For more information about Rangeley Capital, please visit: http://www.rangeleycapital.com/

Chapters:

[0:00] Introduction + Episode sponsor: Fundamental Edge

[1:51] What's on Chris' mind for June 2024: election and election trades

[3:24] $LQDA

[12:07] The Russell Rebalance arbitrage

[18:58] Russell Rebalance cont'd: Burford $BUR / Security National $SNFCA

[24:20] Thoughts on Presidential Debate, election and implications for investing

Today's episode is sponsored by: Fundamental Edge

One of a kind, world-class training created for your team, your culture, your way.

Fundamental Edge was founded with a mission to train the next generation of investors and a vision to create a platform that serves the learning and development needs of investment professionals throughout their careers.
Through structured lessons and proven frameworks, Fundamental Edge aims to condense years of “learning via osmosis” into a masterclass for the equity research process.

Funds looking to strengthen their internal training programs can visit fundamentedge.com/corporate-training to learn more.

Ron Nussbaum from Maverick Value, joins the podcast to discuss the Capri Holdings Limited / Tapestry ($CPRI / $TPR) acquisition agreement.

You can follow Ron Nussbaum @MaverickValue on Twitter/X here: https://x.com/MaverickValue

Chapters:

[0:00] Introduction + Episode sponsor: Ycharts

[2:05] Overview of Capri / Tapestry acquisition and why FTC suing to block the combination

[6:01] Capri fundamental value even if deal doesn't go through

[11:46] FTC's case

[20:06] FTC's raised pricing issue

[25:15] Tapestry's response and defining the market / employee side of the antitrust argument

[33:01] Why were all five Commissioners (3 dems, 2 repubs) voting to sue (and not voting on party lines)

[36:00] Industry uniqueness

[40:09] Thoughts on the case's judge

[44:14] Industry commentary

[46:32] Recut

[48:07] Room for settlement possible?

[49:02] Deal breaks tomorrow, whats the possible downside / market odds for both deal going through and downside (not going through)

[55:39] Biggest discrepancy between Ron's view on the case and the market's view on the case

[58:31] HotDocs

[1:01:15] Final thoughts / timeline on the case

Today's sponsor: Ycharts

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Zachary Buckley, Managing Partner at Buckley Capital Management, joins the podcast for the third time to share his thesis on Dentalcorp Holdings (TSX: DNTL) and why he's urging $DNTL.TO Board and Management to undertake a strategic review process.

Zack's letter to the board: https://finance.yahoo.com/news/buckley-capital-management-urges-dentalcorp-113000826.html

Chapters:

[0:00] Introduction + Episode sponsor: Tegus

[1:43] Overview of Dentalcorp $DNTL.TO and his letter to the Board & Management

[7:15] Why'd they call off strategic alternatives in 2023 and why now is the right time

[12:23] Management changes / share restructure / US Listing / CRH comp

[17:43] Differences between Canadian and US dentistry[

20:02] Acquisition process / synergies for mom & pop dentistry practices with $DNTL / why private equity has gone after this industry aggressively

[26:16] Competitive landscape and environment

[28:58] Why hasn't the market warmed up to $DNTL.TO since it's IPO

[32:04] Capital allocation

[38:34] $DNTL.TO final thoughts on the company and his letter

[41:48] Anything else that keeps Zack up at night about $DNTL.TO?

[44:05] How big can Dentalcorp grow (when looking at amount of potential dental acquisitions)

Today's sponsor: Tegus

If you’ve been reading my newsletters, you know how often I rely on Tegus for my research. It’s truly revolutionized how I get up to speed on new industries and companies. Tegus has the largest transcript library in the world, with over 75% of private market transcripts. Whether you’re curious about AI, biotech, or any niche market, Tegus has the insights you need.

What sets Tegus apart is its all-in-one platform. It’s packed with expert call transcripts, management checks, panel calls, and in-depth financial data. No more jumping between different services or piecing together fragmented data. With Tegus, everything is right at your fingertips.

The best part? The insights you get are from the very people shaping the industries you’re interested in. You’ll find perspectives from insiders and executives that you simply can’t get anywhere else.

To see Tegus in action and understand why it’s my go-to resource, visit Tegus.com/value – that’s T-E-G-U-S dot com slash value. Trust me, once you try Tegus, you’ll never look back.