I'm not a fan of SotP pitches at all, especially when the possibility of activism is remote thanks to a controlling shareholder. That's a game for losers.
Where are the days when Columbia Value investor William V. Mueffling was in the Graham Doddsville recommending Vopak as a quality compounder? I think it was the beginning of the 14 years sideways market. I'm getting old.
Wondering how you're feeling about banks atm - I am patiently waiting for FFBB as I still believe in management, though obviously disappointed by events, & now sceptical of ECIPs. Don't know if you're a fan of NBN - it was one of my favourite discoveries last year & presented some decent entry points.
Happy New Year! Very timely and interesting topic. Are you (or anyone else reading) aware of any examples of companies taking advantage of the now public and highly valued Indian company and using its stock to do acquisitions?
Happy New Year! Good to see you back here. But also, huge congratulations on an absolute banner year. Zegona was something else, but a bunch of others too.
I absolutely agree on FILA, though I was swayed for a while as some undoubtedly smart investors have been fans.
Wondering how you feel about RWWI these days, been an interesting few years - feels like this year could see the accountancy changes work through, divi restart, and decent price for it. Cheers.
Do you think Vopak’s decision to maintain its stake during the AVTL IPO in mid-2025—rather than cashing out like FILA did—is a sign that they see the Indian subsidiary as a long-term "hidden gem" for their energy transition, or is it just a way to avoid the scrutiny of what the market would value their "legacy" Dutch operations at if that stake were gone? :)
I’ve subscribed and would be happy to support each other.
I hold FILA myself by a small position, valuing the DOMs stake at just 12x EV/EBITDA or so, as I think 30x is crazy high even if the business is growing this fast, gives a compelling return but only if they do something with the stake.
They are reducing debt, completing more adquisitions like seven, etc... but I do beleive they are not going to sell more stake in DOMs anytime soon, although I beleive the market would realize the value at some point.
They even put now in the presentation highlighted in yellow their stake in DOMs haha
Have a little bit of FILA, but I agree that it's not that exciting. They're not going to touch their DOMS shares anytime soon, as confirmed by the CEO.
Good read, thanks for posting!
A lot of pitches for stock like this rub me the wrong way because they are too bulish in their SoTP calcs.
Look-through earnings seems to be more appropriate, which IIRC is what you usually seem to do
Vopak looks interesting
I'm not a fan of SotP pitches at all, especially when the possibility of activism is remote thanks to a controlling shareholder. That's a game for losers.
Where are the days when Columbia Value investor William V. Mueffling was in the Graham Doddsville recommending Vopak as a quality compounder? I think it was the beginning of the 14 years sideways market. I'm getting old.
I love stocks where I wasn't aware of the company during the 5-10 years of suffering previous investors went through ;)
There are no believers anymore.
Happy new year Dave! Keep the substack posts coming, always a pleasurable read.
Just fyi: blocked & reported a https://substack.com/@alluviial (extra i) who followed me.
Wondering how you're feeling about banks atm - I am patiently waiting for FFBB as I still believe in management, though obviously disappointed by events, & now sceptical of ECIPs. Don't know if you're a fan of NBN - it was one of my favourite discoveries last year & presented some decent entry points.
dave,
checkout the comprehensive details on HAL trust letter from East72 in 2024.
did not follow since liquidity\access thwarts me, but likely glacial pace persists.
Not european but Japanese, Suzuki is the real hidden gem on this topic of india listed subsidiaries
I wasn't aware!
Happy New Year! Very timely and interesting topic. Are you (or anyone else reading) aware of any examples of companies taking advantage of the now public and highly valued Indian company and using its stock to do acquisitions?
So far, no. But it's a worthy strategy.
Happy New Year! Good to see you back here. But also, huge congratulations on an absolute banner year. Zegona was something else, but a bunch of others too.
I absolutely agree on FILA, though I was swayed for a while as some undoubtedly smart investors have been fans.
Wondering how you feel about RWWI these days, been an interesting few years - feels like this year could see the accountancy changes work through, divi restart, and decent price for it. Cheers.
Still a fan! There has been a share overhang for years now that I hope will diminish this year. Been a frustrating one for sure.
Do you think Vopak’s decision to maintain its stake during the AVTL IPO in mid-2025—rather than cashing out like FILA did—is a sign that they see the Indian subsidiary as a long-term "hidden gem" for their energy transition, or is it just a way to avoid the scrutiny of what the market would value their "legacy" Dutch operations at if that stake were gone? :)
I’ve subscribed and would be happy to support each other.
Jorrit
Hi Dave,
Thanks for the useful information.
I hold FILA myself by a small position, valuing the DOMs stake at just 12x EV/EBITDA or so, as I think 30x is crazy high even if the business is growing this fast, gives a compelling return but only if they do something with the stake.
They are reducing debt, completing more adquisitions like seven, etc... but I do beleive they are not going to sell more stake in DOMs anytime soon, although I beleive the market would realize the value at some point.
They even put now in the presentation highlighted in yellow their stake in DOMs haha
Curious on how it ends. Regards
Sent dm :)
I very much enjoyed writing up Vopak myself in November. Fantastic business.
Have a little bit of FILA, but I agree that it's not that exciting. They're not going to touch their DOMS shares anytime soon, as confirmed by the CEO.
Vopak, as always, is very intriguing.
long Fila
Several people I respect are, and that's fine. The numbers are certainly appealing.