February 23 monthly recap
Newsletter update
Company update
Quantitative watchlist
Write ups
European Language Ideas
Manual deck (watchlist)
Movements
Conclusion
Hi, here is my monthly update. Its Sunday, perfect for sending and beating the calendar by 2 days, it’s easier than beating the market.
You are now 1689 in total. It’s nice, let’s go to 10000.
The portfolio is still up 8%, after being flat last year, but very undervalued. I have many quality companies under 10 times profit, sometimes 5, and they are not moving up, this is very strange but happened in the past when value was forgotten (2020, 2018). Well, I will just reinvest dividends in these names! My Tech names rerated, ex Japan, because Japan is Japan…
Articles:
Deep Dive Arcelor Mittal ($) - great company out of a cyclical industry. I do not think its a pound the table buy right now, but it is undervalued and now without debt.
Grupo Aval, Colombian finance giant
Unkown serial acquirer, micro cap. ($) - A very cheap gem. If they execute on the growth, it will be fantastic, but I do not need it.
The next premium fat pitch value will be tomorrow.
I will then send a free fat pitch value article that I am finishing.
I did some screening and A-Z in Spain. I watchlisted two companies that are growth and quality (Amrest SA in restaurants and Proeduca in education). Amrest is also sort of a Polish company. It’s complicated, it is Listed in Spain and Poland.
The one I found relevant was PayPal which had an ok Q4, and interestingly showed increased credit and interest income due to rates rising. CEO Dan Schulman will depart at the end of year and it is a good news in my opinion. He is a pro-consensus slow speed mover, maybe it was needed when they first got public, but PayPal needs speed to create a super app with more services, as well as introduce Venmo overseas. PayPal big opportunity is not having customers paying 200 times a month I think, but it will be credit, additional fee based services, marketplace, advertising (their data is second to none, I would say better than amazon). The company is still growing.
Bastide Le confort, French healthcare serial acquirer, had a good revenue posting with growth now at 15% year on year. The company continues to perform despite a reduced share price and a challenge on debt interest rates as the company has leverage. I increased my position a bit because the price is ridiculous.
The rest, not much to say. Everything is fine.
Here I track movements and PE from google finance or other providers for my watchlist.
Some EM names are really cheap. I have a similar list for DMs but it does not compare in cheapness.
These are just the thesis I found correspond to my value+growth type of ideas.
Legal and General - UK asset management
my top 3:
Asseco South Eastern Europe - hidden-compounder-from-poland
Boustead Singapore - Holding company
Terravest - Canadian compounder
I love Terravest. I have a love hate relation with Boustead for their failure to do good acquisitions even during the covid crash. I used to own it. I think it makes sense but I would prefer the company to do more with the cash. There is now a pending acquisitions, so let’s see.
Last one:
Georgia Capital by Oscar, a cool guy I actually met in Barcelona. Very young and hungry to learn.
For me Georgia is a bit too small of an EM country to invest in. Also this country has a reputation for mafias and crime so I am a bit scared of that. The bigger the country the safer usually.
Italian Thesis for Newlat Foods
I am a big fan of Newlat.
Boa concept - intelligent logistics
Last month, the Berentzen (German drinks company) Hyperlink was wrong, so here is the link again
Making these monthly recaps actually helps me to prioritize and classify the companies I do not own.
Well, there are a lot of fantastic companies at reasonable valuations. Doccheck is a healthcare workers social network and epharmacy in Germany. What’s weird is that they invest in stocks, real estate, gold and even crypto! so they have net assets. But I am not sure about their capital allocation and what they are trying to do. They do pay dividends too.
SDI PLC is very interesting but earnings post covid are to be watched. It’s not clear if they overearned in 2022. I still like TIM, Autopartner, especially with US support of Poland.
The deck and movements are below..