December 23 - January 24 recap
Summary.
Newsletter update
Company update
Quantitative watchlist
Write ups
Movements
Manual deck (watchlist)
Hi all, the newsletter has now over 3690 readers. Alan from continuous compounding has published a write up of round one. Link. Check out his publication on Substack!
https://continuouscompounding.substack.com/
My aim for this newsletter is now to provide more frequent updates on past stock ideas and to have it more organised by company as well. This is what I like to do, to follow my companies. The updates will be free articles, and the monthly recap are simplified to be more time efficient and clear. The number of articles will depend on my free time of course. So stay tuned.
Intrum published results. My original write up did not take in consideration the rising rates impact enough, and the current management is maybe too focused on selling assets to turn the business into capital light model. Link to the press release.
However, asset sales are not really the best for the long term and is usually done by short sighted management. Luckily here it was done at book value. The company remains solid and is focused on deleveraging for the next years (net debt/ebitda is at 4.4 times) by cutting the dividend. The last results are pretty good (Link), and the company trades at 4 times forward earnings according to estimates.
This is not my specialty industry and I need to review it further, but seems that a good place to add if the analysts doing the estimates are correct.
This month I wanted to show a the filter for emerging markets after adding the main cheap Chinese technology companies. And we see JD.com and Alibaba priced amongst the cheapest EM stocks. There are concerns about the earnings really being for shareholders, but they have introduced dividends which make them more profit sharing than US tech stocks.
Some nice undervalued stocks were covered:
I failed to not sell anything because I did some small movements recently.
The reason was mostly seeing companies I admired for years showing up more and more on my screen, and I don’t mean the stock screener, I mean the twitter screen as people are upset and complain that “it is only going down”: Namely Alibaba and SDI Plc.
I think that this twitter screen is almost a better value signal than real screeners.
Supporting the publication gives access to:
All the write ups - aiming for 10 a year.
Full portfolio with diversified 50+ mostly EM/small value ideas with short pitches.
Watchtlists in Koyfin with over 200 Emerging and Hidden champions stocks (free with Koyfin).