Yet Another Value Podcast

Bill Chen, a real estate investor and Managing Director at Rhizome Partners, returns to the podcast to provide his latest insights on what's happening in publicly-traded real estate market, private real estate market and literally everything real estate in between.

For more information about Rhizome Partners, please visit: http://rhizomepartners.com/

Chapters:

[0:00] Introduction + Episode sponsor: Alphasense

[1:38] Discrepancy between publicly-traded real estate and private market value / what's going on in REITs

[4:27] How does current Real Estate environment relate to similar historical periods

[9:26] Bill Chen's current real estate thesis

[13:58] Liquidation premium and where we are in the real estate cycle

[22:43] Public market trades below the private market - why shouldn't public market real estate trade for discount to private market?

[26:45] Real estate diversification, geographic risk and tax breaks

[38:38] Running apartments buildings net debt

[43:25] How to finance a distress cycle and capital allocation strategies during this time

[52:51] Why invest in real estate vs. (for lack of a better term) a lot of other stuff right now

[1:01:21] Why Bill Chen thinks this opportunity exists right now in publicly traded real estate

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.

Harris Perlman, Principal at HSP Capital, joins the podcast to discuss his thesis on Seneca Foods Corporation (NASDAQ: SENEA), one of North America’s leading providers of packaged fruits and vegetables, with facilities located throughout the United States. (Note Harris' audio is not the greatest on this, but we did our best to adjust where we could.)

Harris' write-up: https://drive.google.com/file/d/1wAm1w3eEZCHCfY-e1Lzu0gvyGW7uN4KL/view

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:46] Overview of Seneca Foods $SENEA and why its interesting

[6:22] Asset value / LIFO accounting

[14:24] Why $SENEA isn't the ultra-commodity terrible business most people associate with canned vegetables?

[22:36] Canned vegetables industry

[24:46] $SENEA corporate history and background

[31:38] What happened with $SENEA from 2021-2023, specifically with inflation

[36:16] $SENEA understanding downside risks, specifically regarding insider control, governance, debt

[44:12] Investing in capital expenditures - expand Del Monte capacity

[46:48] How Harris thinks $SENEA thesis will play out

[48:41] Private label trend

[53:37] $SENEA competitive analysis

[57:09] Recent $SENEA financial performance

[1:00:40] Final thoughts on $SENEA

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 September 2023 edition, Chris provides his take on Amazon FTC case, Scultpor Capital Management bid, monthly antitrust update, and more!

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

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:49] What's been going on - September 2023: update on antitrust cases and valuing the deals

[8:45] Large mergers/acquisitions and how to better understand why firms choose the paths they do

[14:09] Sculptor Capital Management bid

[17:25] Best case for shareholder activism and natural corporate defense of smallness

[20:48] Amazon FTC case

[30:22] Amazon iRobot

[35:30] FTC being aggressive bringing losing cases

[38:58] Final thoughts for September 2023: oil and gas, thoughts on the space overall

Today's episode is sponsored by: Stream by Alphasense

Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you.

But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/

Lionel Hutz, Editor of the Lionel Hutz Newsletter on Substack, joins the podcast today to discuss the JetBlue (NASDAQ: JBLU) / Spirit (NYSE: SAVE) merger DOJ case.

Lionel's JetBlue/Spirit write up: https://lionelhutz.substack.com/p/in-the-spirit-of-competition

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:48] What is so interesting about the JetBlue / Spirit DOJ case

[4:18] JetBlue / Spirit merger saga - background

[11:34] Why is the "Northeast Alliance" relevant

[20:26] DOJ case - "Route Pair Analysis" / "Local Market Pairs

[27:06] Airline market / thoughts on divestitures

[32:44] DOJ argument about relevant markets

[44:03] Hurdles for DOJ to show anti-competitive effects

[47:15] Notion of "Hot Docs" and their relevance to the trial

[54:07] Judge for this case, his background and why this matters

[59:08] Consensus around JetBlue's paying a huge premium for Spirit. Why doesn't JetBlue just walk?

[1:06:34] Department of Transportation joined the DOJ to block the merger - what this means?

[1:14:12] Trial scheduled to start October 16, could there be a settlement between now and then?

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.

Kyle Mowery and Mike Holt, CFA, Managing Partner / Portfolio Manager and Senior Analyst, respectively, at Grizzly Rock Capital joins the podcast today to discuss their thesis on Ferroglobe PLC (NASDAQ: GSM), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys.

For more information about Grizzly Rock Capital, please visit: https://www.grizzlyrockcapital.com/

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:47] Who is Ferroglobe PLC (NASDAQ: GSM) and why are they interesting?

[3:39] $GSM valuation

[7:52] What Grizzly Rock Capital thinks the market is misunderstanding about $GSM

[10:51] Global supply / demand curve for silicon metal in China + IRA demand

[17:51] How much of $GSM earnings come from solar currently

[20:01] Evaluating $GSM on an asset valuation basis

[23:53] Management evaluation and semi-controlling shareholder / long term vision

[29:40] Capital allocation strategy

[32:52] Inflation Reduction Act (IRA) and solar demand

[35:49] Plants coming online in North America and how that affects $GSM

[38:38] Outlook on European assets

[40:56] Licensing off EV patents and maintenance capex

[44:57] How Grizzly Rock Capital looking at 2024 earnings

[47:15] Bridging the gap of Grizzly Rock Capital's 2024 expectations vs. $GSM historical performance

[53:14] $GSM 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 https://www.alpha-sense.com/solutions/financial-services/ today to beat FOMO and move faster than the market.

Dan Day, CFA, Equity Research Analyst at B. Riley Securities, joins the podcast today to discuss the digital advertising business, SSPs and his thesis on Magnite, Inc. (NASDAQ: MGNI), the world’s largest independent sell-side advertising company (according the company's website). To get in touch with Dan Day, you can reach him via email here: [email protected]

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:35] What is Magnite, Inc. (NASDAQ: MGNI) and why is it interesting to Dan

[8:57] Take rate on SSP's (effectively the bear case on SSPs)

[14:53] Adtech trends since early 2021

[19:11] Brand integrity - how much is that important amongst SSPs

[20:25] $MGNI valuation upside

[23:55] Programmatic recession vs. the stocks were overvalued in 2021

[25:48] CTV - what it means and how it works; why its important to $MGNI

[29:24] Who is $MGNI working with on CTV / competitive landscape

[32:55] $MGNI bear case on programmatic advertising - why don't publishers build out SSPs themselves? How are publishers thinking about building vs. buying SSPs?

[44:25] Anything missed on the Bull or Bear case for $MGNI / stock compensation

[50:07] Google antitrust case - what is the bull case for $MGNI

[59:24] Odds that Google loses this trial and/or splits out SSP

[1:03:58] One thing that market generalists miss regarding $MGNI

[1:08:26] Channel checks on media industry

Today's episode is sponsored by: Stream by Alphasense

Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you.

But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/

Artem Fokin, Portfolio Manager at Caro-Kann Capital LLC, returns to the podcast (for the fourth time) to discuss Burford winning the YPF case and the fundamental thesis post-trial.

For more information about Caro-Kann Capital, please visit: http://caro-kann-capital.com/

Artem's first appearance on BUR: https://youtu.be/qBuH8pyc8Y0

Artem's second appearance on BUR: https://youtu.be/OIFGrfx1O88

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:41] Burford won the case - quick overview of the case and how we arrived at this final judgement

[15:15] Enforcement and collection

[28:55] Examples of collection efforts

[33:14] Timing of enforcement and potential settlement payouts

[44:02] Tax implications

[54:22] Why hasn't $BUR management answered the question about whether any of the funds they manage bought YPF?

[1:03:35] $BUR core business

[1:14:04] $BUR asset management business model / recent results / management and employee incentives

[1:28:26] $BUR valuation without YPF included

[1:39:38] ROE on the core business on a per share basis and final thoughts

Today's episode is sponsored by: Stream by Alphasense

Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you.

But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/

Conor Maguire, Founder and Editor of the Value Situations Newsletter, joins the podcast for his second appearance to share his thesis on Marlowe plc (LSE: MRL), provider of a broad range of compliance software and services in areas which pose a high risk for businesses.

For more information about Conor Maguire and Value Situations Substack: https://valuesits.substack.com/

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:41] Overview and investing thesis on Marlowe plc (LSE: MRL

[13:49] $MRL's TIC segment - what is the catalyst here

[18:11] Potential bidders for TIC segment

[25:12] Management incentives

[30:58] Marlowe $MRL.L bear case

[40:58] FCF and $MRL.L moving forward

[47:24] Risk factors / what worries Conor about $MRL.L

[53:09] How does $MRL.L thesis fit Conor's overall investing framework?

Today's episode is sponsored by: Stream by Alphasense

Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you.

But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/

Chadd Garcia, Portfolio Manager and Senior Research Analyst at Schwartz Investment Counsel Inc. - Ave Maria Focused Fund, joins the podcast for his second appearance to share his thesis on eDreams ODIEGO (MSE - Madrid Stock Exchange: EDR), travel subscription platform and one of the largest e-commerce businesses in Europe.

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:43] Overview of eDreams ODIGEO $EDR.MC

[9:27] eDreams' overall vision and current valuation

[13:34] Prime model and its potential growth in European markets

[17:30] How eDreams is different from TripAdvisor / why eDreams the one to crack the membership model

[23:13] Costco comparison

[25:24] Churn rate / U.S. investor perspective on eDreams / changing disclosures

[34:07] Competitive landscape, in particular, response from Booking as eDreams grows

[38:45] Hotels initiative / breaking into the U.S. market

[43:13] Capital allocation strategy

[47:20] Final thoughts on eDreams: risks to consider / headwinds / Chadd's personal experience using eDreams platform

Today's episode is sponsored by: Stream by Alphasense

Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you.

But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/

It's time to welcome back Chris DeMuth for his monthly state of the markets. For this August 2023 edition, Chris provides his take on the FTC in general, Horizon/Amgen case, deep dive into CVRs and, of course, the Microsoft / Activision deal.

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

Chapters:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:43] What's been going on - August 2023; starting with FTC in general

[7:12] State of the FTC, Anti-trust

[11:16] Horizon/Amgen case

[17:30] Deep dive into CVRs

[29:42] Can CVRs present a little risk adjusted alpha?

[35:29] Microsoft / Activision deal

Today's episode is sponsored by: Stream by Alphasense

Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you.

But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/