by Travis Johnson, Stock Gumshoe | September 3, 2021 12:35 pm
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Source URL: https://www.stockgumshoe.com/2021/09/friday-file-smoke-in-the-box/
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Great write up on NLCP New Lake Capital. I followed you on IIPR, PW, and AFCG, and will do so on NLCP. Thanks Travis
Thanks steveflick, hope it works out for you (and me).
Interesting review of Shopee: https://nz.sitejabber.com/reviews/shopee.com.my … not sure if it’s representative, but from a customer point of view that’s not too good.
Hi Travis. I have joined recently and this is my first post. Thanks for the great write up. I have been looking over the cannabis companies and will make a small jump next week. But I’m curious about Liow’s investment in Charter and your positive comments about Charter’s hold on broadband customers. What does Charter have going for it that makes it more likely to survive the streaming asteroid than the other cable TV dinosaurs?
I have never looked at Charter, but I assume the appeal is similar to Comcast’s cable business — even with cable TV subscriptions in decline, they are the monopoly provider of broadband internet in many of their markets. Streaming doesn’t work without broadband, so they will have some leverage for the foreseeable future.
I was surprised to see TransDigm (TDG) in that Yen Liow list . I recently looked at it because I saw it’s bonds in a junk bond fund. The balance sheet showed liabilities exceeding assets, which I thought was the definition of insolvency?
Haven’t looked at their books — though it wouldn’t be surprising if the aviation crisis last year put a hole in the balance sheet that could take time to fill
This is several years, though. There must be something he sees that I don’t obviously.
(from Yahoo Finance)
Balance Sheet – All numbers in thousands
Breakdown 9/30/2020 9/30/2019 9/30/2018 9/30/2017
Total Assets 18,395,000 16,254,731 12,197,467 9,975,661
Total Liabilities Net Minority Interest 22,363,000 19,139,814 14,005,938 12,926,865
Total Equity Gross Minority Interest -3,968,000 -2,885,083 -1,808,471 -2,951,204
Total Capitalization 15,412,000 13,574,316 10,693,475 8,442,416
Common Stock Equity -3,972,000 -2,894,905 -1,808,471 -2,951,204
Net Tangible Assets -14,471,000 -13,458,828 -9,820,165 -10,414,404
Working Capital 5,344,000 3 ,326,491 2,756,905 1,262,558
Invested Capital 16,037,000 14,004,048 11,068,811 8,811,457
Tangible Book Value -14,471,000 -13,458,828 -9,820,165 -10,414,404
Total Debt 20,009,000 16,898,953 12,877,282 11,762,661
Net Debt 15,292,000 15,431,467 10,804,265 11,112,100
Sorry, thought I had it formatted in columns. Here is a screenshot of the balance sheet data from Yahoo Finance:
Hey Travis
I would like to thank you for purchasing
(Docn) what a jump Friday
Don’t own shares of DOCN at this point, though I do have some call options and have been thinking about an investment.
Travis, great write-up as always.
Would you mind sharing your favorite 13-f filers ,as i’ve always found some interesting ideas through those filings?
As I understand it EverArc is a UK-listed SPAC-equivalent which is buying Perimeter Solutions from a private equity fund almost entirely for cash. While the company concept may be good it is usually the case that this kind of seller will have extracted as much value before selling it on. Is going into the remaining husk really a good idea? To be fair at least you do advocate waiting for a while before making a purchase. That is certainly sensible.
That is a viable reason to be skeptical, but my take is that the business is rationally valued here — not cheap, and maybe it will get cheap, but reasonable if their business looks similar in the future to how it looked in the rough financials they provided.
That could certainly change as we learn more, but at the moment I lean toward optimism on this company.
For Yen Yiow
The word is ‘pare’ to pair one would buy more…:)
Sorry, that’s probably my autocorrect transcribing error.