Yet Another Value Podcast

Patrick Wolff, full-time private investor, joins to have a general discussion a wide range of topics: his background (former US Chess champion in 1992 and 1995), the right to buy stocks, domestic vs. international focus, indexing vs. single stock investing, battleground stocks, advantages investing in MicroCap stocks and closes with his thesis on Transact Technologies $TACT.

Chapters:

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

[2:01] Patrick Wolff's background

[7:10] The right to buy stocks

[12:37] Domestic vs. International focus; European markets

[21:04] Indexing vs. single stock investing; tax efficiency; time efficiency

[32:56] Diversification and circle of competence

[37:53] Battleground stocks

[40:19] MicroCap stocks

[47:13] $TACT Transact Technologies thesis

Today's episode is sponsored by: Fundamental Edge

You’ve probably heard it’s an “apprenticeship” system, or that you’ll “learn by osmosis”? But what if there was a better way to learn the equity analyst job? Fundamental Edge is re-defining training on the buy-side. Website: https://www.fundamentedge.com/

Whether you’re already in the seat or looking to break in, the Analyst Academy from Fundamental Edge offers a thorough and flexible path to developing the tools and frameworks employed by leading hedge funds. Breaking in: https://www.fundamentedge.com/breaking-in

Check out the Academy syllabus and sign up for future free content: https://fundamental-edge.ck.page/academyinfo

Jim Royal, Author of "Zen of Thrift Conversions", joins the podcast to provide the basics of "Thrift Conversions", what that means, as well as examples that help illuminate them.

Jim's book, "Zen of Thrift Conversions", available on Amazon: https://www.amazon.com/Zen-Thrift-Conversions-Hidden-Stocks/dp/B08KH3THCR?crid=1RO9I0CVP07JD&keywords=the+zen+of+thrift+conversions&qid=1704737642&sprefix=zen+of+thrift,aps,161&sr=8-1&linkCode=sl1&tag=andrew613880e-20&linkId=aa5821380d1063911549c0014b02427a&language=en_US&ref_=as_li_ss_tl

Chapters:

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

[1:49] The basics of "Thrift Conversions"

[8:51] Safety

[11:25] Management incentives

[15:46] How can investors participate in IPO of thrift conversions

[19:58] Needham

[23:50] Thrift Conversions in current banking environment

[27:26] Return on equities and repurchases

[35:39] Characteristics of poor de-mutualizations and thrift conversions

[39:14] Investor Activism

[45:08] Why thrift conversions sell during a given time frame and why some don't

[47:36] Worthwhile for investors to look at second step conversions (because so complicated)?

[51:00] Lightening round: why more mutuals in the Northeast than elsewhere? How much does geography matter?

[53:59] Three (3) interesting de-mutualizations to look at, according to Jim Royal

Today's episode is sponsored by: Fundamental Edge

You’ve probably heard it’s an “apprenticeship” system, or that you’ll “learn by osmosis”? But what if there was a better way to learn the equity analyst job? Fundamental Edge is re-defining training on the buy-side. Website: https://www.fundamentedge.com/

Whether you’re already in the seat or looking to break in, the Analyst Academy from Fundamental Edge offers a thorough and flexible path to developing the tools and frameworks employed by leading hedge funds. Breaking in: https://www.fundamentedge.com/breaking-in

Check out the Academy syllabus and sign up for future free content: https://fundamental-edge.ck.page/academyinfo

Adam Patinkin, CFA, Managing Partner at David Capital Partners, LLC, joins the podcast to discuss his thesis on Vistry Group PLC (LSE: VTY), UK’s leading provider of affordable mixed tenure homes.

For more information about David Capital Partners, please visit: https://davidpartners.com/

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:28] David Capital's background and investing philosophy

[7:07] Overview and history of Vistry Group $VTY.L + David Capital's background with $VTY.L and why Vistry is interesting to Adam

[18:39] Partnerships business - what is it?

[27:04] What is unique about Countryside's business model (Vistry's competitive moat)

[36:25] Why Adam thinks that Vistry's future growth is going to unlock, despite trading flatish for last 15 or so years

[43:10] What "Mixed Tenure Project" means

[48:02] Partner pushback?

[52:40] NPC comparison

[56:17] What breaks the Vistry thesis?[1:00:55] UK housing cycle - where are we at[1:06:02] Vistry valuation + growth prospects

[1:16:25] What is the sell-side missing[1:22:38] CEO comp package and newly appointed board directors[1:25:22] Vistry exposure amongst UK funds

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

It's time to welcome back Chris DeMuth for his monthly state of the markets. For this December 2023 edition, Chris discusses what's on his mind at the end of the year, Merger Arb, $ROIV, $IMVT, thoughts on $SAVE, views on 2024 and lessons learned from 2023.

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

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:46] Chris' thoughts, high level, for December 2023: merger arb

[2:44] Roivant $ROIV

[8:27] Immunovant, Inc. $IMVT

[13:44] Thoughts on $SAVE, antitrust, merger arb implications when government blocks M&A

[26:18] Views on 2024 and lessons learned from 2023

[36:23] CVRs

[42:55] Final thoughts

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

Adam Wilk, CFA, Founder and Portfolio Manager of Greystone Capital Management, LLC, joins the podcast to discuss his thesis on Sylogist (TSX: SYZ), provider of mission-critical SaaS solutions to over 2,000 public sector customers globally across the government, nonprofit, and education verticals.

For more information about Greystone Capital Management, please visit: https://www.greystonevalue.com/

Sylogist write-up in Q1 2023 Letter: https://www.greystonevalue.com/_files/ugd/47fd79_4bc7a737390344ceb68d07367503b878.pdf

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:32] Overview of Sylogist (TSX: SYZ) and why Adam finds it interesting

[9:00] $SYZ.TO strategic review and why pivoted the way they did

[15:49] How $SYZ.TO has evolved over last few years

[18:31] How $SYZ.TO management team is incentivized

[21:41] How is $SYZ.TO beating larger competitors for business / how is transitioning from "on-premises" to cloud offering creating growth? / Pricing power

[30:11] Microsoft partnership

[34:28] Focus on nonprofit and government verticals; value proposition for these target customers / biggest competitor

[38:36] Nonprofit space / Government ERPs

[42:20] $SYZ.TO earnings, specifically on EBITDA

[49:01] Thoughts on what CEO meant when he said "We're stepping on the gas for growth in 2024" on the Q3 call

[52:36] $SYZ.TO valuation and final thoughts

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

Kevin Mak, CFA, Founder of Creek Drive Capital and Teacher at Stanford University of a course called, Financial Trading Strategy, discusses his thesis on Sphere Entertainment Co. (NYSE: SPHR).

Link to Kevin's $SPHR thesis: https://drive.google.com/file/d/1_jGx22O8NWRlb8zZZmuqMwfa-Ae3Y55o/view

Twitter: https://twitter.com/KevinLMak

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:17] Sphere Entertainment Co. $SPHR and why it's interesting to Kevin

[3:36] Kevin's views on $MSGN and why that's relevant for $SPHR

[8:56] How Kevin values $SPHR

[15:20] More important from a revenue perspective: Residencies or Daily Airing of "Postcards"

[17:13] Sustainability of the movies at $SPHR / how much better is $SPHR than a quality IMAX?

[26:35] $SPHR customer demand

[29:10] $SPHR music residency economics / logistics / creating the buzz

[38:30] $SPHR customer draw as technology improves

[40:52] Outside revenue streams (ad revenue on outside of the Sphere) / cost to create an ad for the Sphere (Billboard comp) + economics of the Sphere

[47:51] Main difference between Kevin's $SPHR analysis and sell-side analyst targets

[49:58] Corporate governance and naming rights

[52:39] Capex

[56:04] Valuing the franchise model and pushback on multiple Sphere's - how do you find the right markets for Sphere + why did London turn down the Sphere

[1:03:25] Convertible debt / $SPHR valuation

[1:08:12] $SPHR final thoughts

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

John Huber, Founder and Portfolio Manager at Saber Capital Management, joins the podcast today to describe the concept "Inevitable Retail Winners", characteristics of inevitability, as well as talking through many different examples that exemplify this concept. In addition, John shares his thesis on Floor & Decor (NYSE: FND).

For more information about Saber Capital Management, please visit: https://sabercapitalmgt.com/home/

Article from Base Hit Investing: https://basehitinvesting.substack.com/p/munger-podcast-thoughts-retail-stocks

YAV blog post on retail: https://www.yetanothervalueblog.com/p/cyber-monday-thoughts-part-1-retail

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:55] What is an "inevitable retail winner" and Charlie Munger's thoughts on this

[10:19] Restaurants

[12:34] Various retail companies mentioned, are they "inevitable retail winners"; characteristics of "inevitability" - using AutoZone as an example as well

[22:09] Retail management and culture

[27:33] Floor & Decor $FND: what is their moat? / customer experience / why inventory is a moat

[38:55] Pro vs. DIY customer spend / comment on ROIC on new stores / does $FND want to own their own stores

[45:14] Macro impact on $FND?

[51:14] $FND valuation

[58:20] $FND described as a "category killer"

[1:00:21] $FND risks

[1:03:36] Any difference in $FND pre vs. post IPO + mistakes management made in the past

[1:07:16] Push back on $FND thesis: recent acquisitions and "category killer"

[1:11:32] Any other retails that John thinks has a chance to be inevitable or he thinks that a lot of investors talk about in this "inevitable" way

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

Lionel Hutz, Editor of the Valorem Research Newsletter on Substack, joins the podcast today to provide his Spirit / JetBlue post-trial breakdown.

For more information about Valorem Research and to subscribe, please visit: https://www.valoremresearch.com/

[0:00] Introduction + Episode sponsor: Alphasense

[1:44] General takeaways from Spirit / JetBlue post-trial and post-trial briefs

[7:56] DOJ's case, what citing of Philadelphia National and Baker Hughes cases as precedents means

[13:17] Harm to local markets - thoughts on this framework as it applies to the bear case

[16:04] JetBlue's "having it both ways" arguments and where Lionel thinks JetBlue scored points with their arguments

[23:21] 51 presumptive markets and how they are relevant to this case + the government's skepticism of divestitures

[33:20] How JetBlue and the government handled the expert witness, what deficiencies that JetBlue finds with the government witnesses

[39:39] Government's points regarding the hot docs

[42:40] How precedent being used to support both sides of the case

[50:03] Evidence supporting JetBlue's position and evidence supporting DOJ's position

[57:26] The fourth bear case on relevant markets

[1:03:35] Timing on ruling

[1:12:33] Legacy of the outcome for this case

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

Brad Hathaway, Managing Partner of Far View Capital Management, joins the podcast today to discuss what he thinks is a compelling setup at Distribution Solutions Group, Inc. (NASDAQ: DSGR), a premier multi-platform specialty distribution company providing high touch, value-added distribution solutions to the maintenance, repair & operations (MRO), the original equipment manufacturer (OEM) and the industrial technologies markets.

For more information about Far View Capital Management, please visit: https://www.farviewcapitalmgmt.com/

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[3:11] Quick overview of Distribution Solutions Group $DSGR and why it's interesting to Brad

[4:40] Overall $DSGR setup, starting with rights offering

[7:07] $DSGR business overview (all three businesses), direct comps, competitive sales advantage, customer retention

[19:51] $DSGR transaction (LKCM involvement) and why do all three businesses belong together?

[29:23] $DSGR thesis and LKCM's history with specialty distributors

[36:20] $DSGR valuation, what type of organic growth would $DSGR show without future acquisition, how much of the industry is still in-house, roll-up strategy multiple

[46:00] Scaling $DSGR business, capital allocation and tail risks

[57:22] Scaled specialty distributor that has not worked

[1:01:11] Path to liquidity, management and LKCM alignment

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.

Lionel Hutz, Editor of the Valorem Research Newsletter on Substack, joins the podcast today to discuss the Liquidia vs. UTHR hearing at the Federal Circuit that took place on Monday, December 4, 2023.

Lionel's LQDA write up: https://www.valoremresearch.com/p/lqda-v-uthr-premium-update

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:35] What was the $LQDA hearing recently on Monday, December 4, 2023, and Lionel's initial thoughts on the hearing

[6:16] Arguments UTHR was drilling down on

[10:14] How Lionel thinks of the quality of UTHR's arguments

[13:56] Judge performance and thoughts on their performance during the hearing

[27:00] Question from Judge for LQDA about dissemination of abstracts / would we have this problem of dissemination if that conference was in 2023 vs 2004

[37:26] Next steps post-hearing: reversal or remanding, if remanding (sending back to the PTAB court) - what is the most likely issue, if reversal - what is the most likely reason

[49:02] Odds on outcome of the $LQDA hearing

Today's episode is sponsored by: Alphasense

This episode is brought to you by AlphaSense, the AI platform behind the world's biggest investment decisions. The right financial intelligence platform can make or break your quarter. AlphaSense is the #1 rated financial research solution by G2. With AI search technology and a library of premium content, you can stay ahead of key macroeconomic trends and accelerate your investment research efforts. AI capabilities, like Smart Synonyms and Sentiment Analysis, provide even deeper industry and company analysis. AlphaSense gives you the tools you need to provide better analysis for you and your clients. As a Yet Another Value Podcast listener, visit alpha-sense.com/fs today to beat FOMO and move faster than the market.