Yet Another Value Podcast

It's time to welcome back Chris DeMuth for his monthly state of the markets. For this April 2024 edition, Chris shares his thoughts on: the markets as we head into the Summer months, anti-trust, Capri-Tapestry anti-trust case, mergers blocked in greater frequency - has there been another time like this, and more! For more information about Rangeley Capital, please visit: http://www.rangeleycapital.com/ Chapters: [0:00] Introduction + Episode sponsor: Fundamental Edge [1:57] Thoughts on markets as we finish up April and head into the Summer months [3:47] Growth in the largest businesses in the index [8:27] Anti-trust [12:36] Capri-Tapestry anti-trust case [27:38] Capri-Tapestry cont'd - market definition [38:43] Last 6 months, 3 mergers have been challenged and blocked - ever been another time like this? Today's sponsor: Fundamental Edge You’ve probably heard about the Analyst Academy from Fundamental Edge by now. So instead of repeating the basics, let’s talk a minute about what the Academy is and is not. The Analyst Academy is a practical course on the tools and skillsets required to succeed in the buy-side analyst seat. The instructors have experience from firms such as Maverick Capital, DE Shaw, Citadel, Balyasny and ExodusPoint. But what is the Academy NOT? It’s NOT a course on stock-picking. It IS a rigorous guide to learning a process. It’s NOT a guide to pod shop investing. The Academy attracts a wide range of equity investors, from multi-managers to long only to family offices. Rather than teaching a particular style, Fundamental Edge equips learners with the essential skills required to hit the ground running and support their PM. It’s NOT a financial modeling course. Modeling is, of course, part of the curriculum and plays a central role. But the Academy is more than that. It teaches idea generation, thesis communication and how to add value as an analyst. To learn more and access a 10% discount code, go to fundamentedge.com/YAVP

Julian Lin, Founder of Best of Breed Growth Stocks, an investment newsletter, joins the podcast to discuss his thesis on Reddit, Inc. (NYSE: RDDT). $RDDT write-up on Seeking Alpha: https://seekingalpha.com/article/4686257-reddit-julian-lins-top-conviction-idea Chapters: [0:00] Introduction + Episode sponsor: YCharts [1:22] What is Reddit $RDDT and why is it interesting to Julian [2:58] $RDDT bull case [14:09] Network effects [20:46] $RDDT bear case: when will they become profitable? What are they spending R&D on? [30:45] Valuation [33:48] $RDDT vs. tier 2 social media platforms (Pinterest, Twitter, SnapChat) / mismanagement [45:27] Valuation cont'd [56:53] $RDDT Growth strategy [1:02:23] $RDDT's Biggest misperceptions This episode is sponsored by our friends at YCharts A typical day in the life of a financial advisor calls for back-to-back client meetings, juggling portfolio management, and the consistent desire to improve client relationships. YCharts’ report and proposal tools could be the missing piece to help you effectively handle these time-consuming tasks. Now more than ever, clients want to hear from their advisors. And with user-friendly templates at your disposal, generating impactful client reports can be easily integrated into your everyday routine, helping you free up time and focus on what matters most: enhancing client interactions and growing AUM. Join thousands of users who rely on YCharts by leveraging personalized proposal reports to truly showcase your value add. Click the link in the show notes to start your free YCharts trial and tell them I sent you (new customers only): https://go.ycharts.com/yet-another-value

Matt Turk joins the podcast to discuss his thesis on Target Hospitality Corp. (NASDAQ: TH), one of North America's largest providers of vertically integrated modular accommodations and value-added hospitality services. Links: https://www.bamsec.com/filing/114036124014503/4?cik=1859285 https://www.youtube.com/watch?v=31s6todiuM8 Matt's YouTube Channel: https://www.youtube.com/@given2trade4 Chapters: [0:00] Introduction + Episode sponsor: Fundamental Edge [1:53] What's going on with Target Hospitality $TH and why its interesting to Matt [8:18] $TH Corporate history and why it's important / 2020 letter compared to 2024 letter from Arrow Group [31:22] History cont'd of $TH with Arrow Group / why this situations reminds Andrew of $HRT situation [39:11] Government contract / tail risks [41:54] Bull case / comparables / rollups [49:13] Additional risks [58:50] Likelihood of closing and talking through potential buyout prices[1:04:50] Final thoughts Today's sponsor: Fundamental Edge You’ve probably heard about the Analyst Academy from Fundamental Edge by now. So instead of repeating the basics, let’s talk a minute about what the Academy is and is not. The Analyst Academy is a practical course on the tools and skillsets required to succeed in the buy-side analyst seat. The instructors have experience from firms such as Maverick Capital, DE Shaw, Citadel, Balyasny and ExodusPoint. But what is the Academy NOT? It’s NOT a course on stock-picking. It IS a rigorous guide to learning a process. It’s NOT a guide to pod shop investing. The Academy attracts a wide range of equity investors, from multi-managers to long only to family offices. Rather than teaching a particular style, Fundamental Edge equips learners with the essential skills required to hit the ground running and support their PM. It’s NOT a financial modeling course. Modeling is, of course, part of the curriculum and plays a central role. But the Academy is more than that. It teaches idea generation, thesis communication and how to add value as an analyst. To learn more and access a 10% discount code, go to fundamentedge.com/YAVP

Scott Miller, CIO of Greenhaven Road, joins the podcast to discuss his thesis on PAR Technologies (NYSE: PAR), where more than 70,000 restaurants in more than 110 countries use PAR’s restaurant point-of-sale, digital ordering, loyalty and back-office software solutions as well as industry-leading hardware and drive-thru offerings (according to the company's website). Voss Capital write-up: https://vosscapital.substack.com/p/pars-path-to-80-redux Greenhaven Road Q4 investor letter ($PAR mentioned): https://static1.squarespace.com/static/5498841ce4b0311b8ddc012b/t/65bd570c0ba5792db938f9a6/1706907404785/Greenhaven+Road+-+2023+Q4+FINAL_.pdf For more information about Greenhaven Road, please visit: https://www.greenhavenroad.com/ Chapters: [0:00] Introduction + Episode sponsor: YCharts [1:30] Overview of PAR Technologies $PAR and why Scott is excited about the idea [4:18] What are the "haters" missing with $PAR [7:54] Burger King customer win [9:42] Competitive landscape [15:20] Why $PAR more than a Point of Sale play; additional verticals [19:04] How do they win more customers / cloud-based vs. not-cloud based point of sale matter [25:28] $PAR recent acquisitions, execution risk / convenience stores [33:55] Growth runway / what keeps Scott up at night about $PAR [38:24] Lumpiness of customer wins/announcements [41:30] Final thoughts on $PAR This episode is sponsored by our friends at YCharts. Numbers and data are one thing, but how you communicate and scale the delivery of these insights to clients is the real challenge. The reality is, people are more inclined to invest their attention and hard-earned dollars when presented with a captivating story and a skilled storyteller. YCharts empowers you with a fully customizable report and proposal offering, allowing you to expertly guide and control the narrative during client meetings. With over 30 modules for returns, risk, allocations, exposures, and holdings breakdowns, you can effectively showcase your strategies’ strengths and your competitors’ weaknesses. To top it off, YCharts Proposals has built-in sharing capabilities so you can create and share report templates for seamless collaboration among colleagues, enabling your team to gather new assets with ease. Check out YCharts' all-in-one solution and easily illustrate the value you bring to your clients. Click the link here to start your free YCharts trial and tell them I sent you: https://go.ycharts.com/yet-another-value

Patrick Fleury, CFO of TeraWulf Inc. (NASDAQ: WULF), joins the podcast to discuss everything you need to know about bitcoin mining. TeraWulf owns and operates vertically integrated, environmentally clean bitcoin mining facilities in the United States. For more information and to subscribe to TeraWulf, please visit: https://www.terawulf.com/ Chapters: [0:00] Introduction + Episode sponsor: Santangel's Review [1:34] Patrick Fleury's background / difference between oil and gas mining to bitcoin mining at TeraWulf [6:10] Defining hash rate and hash price [12:48] Halving [14:10] ROI for every new bitcoin miner they build [19:04] Cost of capital / power costs [24:33] Economies of scale and growth for growth's sake [28:05] ROI on a 20-year investment in bitcoin miner (when considering halvings happen every 4 years) / cooling / low cost mining strategy [33:41] What happens if bitcoin price drops (from mining operation perspective) [38:13] Why issuing shares and directing all cash flows to pay down debt the best use of capital? [40:15] Valuation and where Patrick thinks bitcoin miners should trade / replacement costs on assets in the ground [45:38] Mining facilities, power, AI plays, turning over to HFC and AI machines / power capacity, source of power [54:43] Nautilus facility / bitcoin mining tax / expanding internationally [100:16] Capital allocation [1:01:36] M&A / value discrepancies / final thoughts Today's episode is sponsored by: Santangel's Review Finding the right hedge fund cap intro event isn't just about the size; it’s about the value it brings to your time. This month's sponsor, Santangel's Review, offers something unique for fund managers and allocators. Founded in 2010, Santangel’s hosts three Cap Intro Roundtables each year - two in New York City and one at Fenway Park in Boston. These events stand out for their focus on quality over quantity, attracting some of the most prestigious endowments, foundations, and family offices worldwide. The secret sauce: Santangel’s spotlights undiscovered talent. Managers you don't necessarily see at other industry conferences. Attendees take part in eight one-on-one meetings, intermixed with ample networking opportunities. In an industry built on relationships, Santangel's fosters some of the most valuable connections. Just go to Santangels.com— S-A-N-T-A-N-G-E-L-S dot com to learn more and request an invitation. If you’re a manager or allocator who is serious about maximizing your time, you'll want to be a part of the Santangel's Roundtable. Click here: https://santangelsreview.com/

Devin LaSarre, Founder and Editor of the Invariant Newsletter on Substack, joins the podcast to discuss his write-up and thesis on Haypp Group (HAYPP.ST). Quick description on Haypp Group (according to their website): The Haypp Group is spearheading the global transformation from smoking to healthier product alternatives. With origins in Scandinavia our extensive experience from pioneering markets in smoke free alternatives, as well as being a leader in the e-commerce sector, we now fully take our vision to a global scale. With eleven e-commerce brands, the Haypp group is present in seven countries where we served more than 950 000 active customers in 2023. Haypp Group write-up: https://invariant.substack.com/p/haypp-group-nicotine-pouch-trend For more information and to subscribe to Devin LaSarre's newsletter, Invariant, please visit: https://invariant.substack.com/ You can Follow Devin LaSarre on Twitter/X @DevinLaSarre: https://twitter.com/DevinLaSarre Chapters: [0:00] Introduction + Episode sponsor: Santangel's Review [1:36] What is the Haypp Group and why it's interesting to Devin and overview of the smoking alternatives industry [6:52] Demand for nicotine and oral products (pouches, snus, dips) [13:44] Haypp Group - investing thesis, why attractive idea to Devin [17:44] What is differentiated about Haypp Group; why is this not the most competitive, lowest margin business [23:21] What's a "Zyn-fluencer" and marketing challenges [26:24] Customer acquisition costs / focus on SEO [33:06] Haypp Group's pricing and cost structure [41:01] Alternative smoking product consumer trends, switching up brands [48:30] Addressing risk factors / Haypp's moat [57:07] Insights business [59:47] Regulation risk with selling alternative smoking products online [1:07:23] Valuation [1:12:32] Where alpha potentially comes from since Haypp stock's double in last 6 months [1:18:06] Low capex [1:21:30] Switching costs from cigarettes to alternative smoking products Today's episode is sponsored by: Santangel's Review Finding the right hedge fund cap intro event isn't just about the size; it’s about the value it brings to your time. This month's sponsor, Santangel's Review, offers something unique for fund managers and allocators. Founded in 2010, Santangel’s hosts three Cap Intro Roundtables each year - two in New York City and one at Fenway Park in Boston. These events stand out for their focus on quality over quantity, attracting some of the most prestigious endowments, foundations, and family offices worldwide. The secret sauce: Santangel’s spotlights undiscovered talent. Managers you don't necessarily see at other industry conferences. Attendees take part in eight one-on-one meetings, intermixed with ample networking opportunities. In an industry built on relationships, Santangel's fosters some of the most valuable connections. Just go to Santangels.com— S-A-N-T-A-N-G-E-L-S dot com to learn more and request an invitation. If you’re a manager or allocator who is serious about maximizing your time, you'll want to be a part of the Santangel's Roundtable. Click here: https://santangelsreview.com/

It's time to welcome back Chris DeMuth for his monthly state of the markets. For this March 2024 edition, Chris shares his thoughts on meme stocks being back in vogue, $DJT, is speculation back in the market right now, small caps due for some revenge, crypto, bitcoin halving and SBF sentencing. For more information about Rangeley Capital, please visit: http://www.rangeleycapital.com/ Chapters: [0:00] Introduction + Episode sponsor: Santangel's Review [2:14] Chris' high level thoughts as we conclude March 2024 [3:35] Meme stocks back in vogue / $DJT [7:31] Deeper dive on $DJT / monetizing celebrity [14:54] Is speculation back? [18:09] Small caps due for some revenge? [23:40] Crypto, bitcoin halving, performance since launch of ETFs [32:06] SBF sentencing Today's episode is sponsored by: Santangel's Review Finding the right hedge fund cap intro event isn't just about the size; it’s about the value it brings to your time. This month's sponsor, Santangel's Review, offers something unique for fund managers and allocators. Founded in 2010, Santangel’s hosts three Cap Intro Roundtables each year - two in New York City and one at Fenway Park in Boston. These events stand out for their focus on quality over quantity, attracting some of the most prestigious endowments, foundations, and family offices worldwide. The secret sauce: Santangel’s spotlights undiscovered talent. Managers you don't necessarily see at other industry conferences. Attendees take part in eight one-on-one meetings, intermixed with ample networking opportunities. In an industry built on relationships, Santangel's fosters some of the most valuable connections. Just go to Santangels.com— S-A-N-T-A-N-G-E-L-S dot com to learn more and request an invitation. If you’re a manager or allocator who is serious about maximizing your time, you'll want to be a part of the Santangel's Roundtable. Click here: https://santangelsreview.com/

Judd Arnold, Lake Cornelia Research Management @CorneliaLake, joins the podcast to discuss the MiX Telematics $MIXT and Powerfleet $PWFL merger. $PWFL / $MIXT Memo: https://drive.google.com/file/d/1eONP4_CF6UPAKXYuZiDedUt2jRimujTa/view For more information for Lake Cornelia Research Management and Judd Arnold, you can can Follow on Twitter/X @CorneliaLake: https://twitter.com/CorneliaLake Chapters: [0:00] Introduction + Episode sponsor: Tegus [2:53] Overview of $MIXT / $PWFL [10:18] Why $MIXT / $PWFL merger is so interesting to Judd [21:21] Pushback on the bull case for the merger [27:56] Switching costs / AI [34:22] Open vs. closed systems [37:38] Management and incentives [48:44] Management's comments and vision post-deal [53:58] Thoughtful pushback Judd has received on thesis [59:20] Merger background [1:07:26] Why Judd publishes these long notes? Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

Matt Warder, @mfwarder on Twitter/X, joins the podcast to discuss all things Coal, including: high level thoughts on coal, investing narrative from last few years, regulation, "greening" of metallurgical coal, $AMR, $HCC, upcoming election's impact on coal investment case and more! You can Follow Matt Warder on Twitter/X @mfwarder: https://twitter.com/mfwarder Range Global Resources Coal ETF: https://rangeetfs.com/coal Chapters: [0:00] Introduction [1:27] High level thoughts on Coal [6:07] Coal's investment narrative from last few years [12:50] "Commodities don't die down, they die up" / down cycle in thermal coal [16:07] Biden admin on coal [21:38] Metallurgical coal ideas [26:17] Global cost curve for metallurgical coal "met coal" / are we mining less efficiently? [35:41] "Greening" of metallurgical coal? [42:53] Domestic coal plays $AMR [48:54] $HCC / Blue Creek Mine [57:17] Does upcoming election matter for the coal investment case [1:00:28] $HCC $AMR valuations [1:06:09] Final thoughts on coal

Christopher Pavese, President & Chief Investment Officer at Broyhill Asset Management, joins the podcast to discuss Avantor, Inc. (NYSE: AVTR), a leading global provider of mission-critical products and services to customers in the life sciences and advanced technology industries. For more information about Broyhill Asset Management, please visit: https://www.broyhillasset.com/ Chapters: [0:00] Introduction + Episode sponsor: Tegus [1:35] As a generalist, how Chris and team arrived looking at healthcare + GLP-1 tangent [9:16] Overview of Avantor, Inc. $AVTR and why it's interesting to Chris [13:56] Laboratory Solutions (accounts for 2/3's of $AVTR revs) / how embedded is $AVTR with customer base (CDMO business) [20:19] VWR acquisition [23:02] Disconnect between reported numbers and large cap comparisons / understanding cyclicality in life sciences/healthcare [32:36] Variant opinion that generates alpha in $AVTR [37:14] Why not own $TMO or $DHR over $AVTR? [42:06] Capital allocation and M&A [46:22] Build vs. sell [48:35] Recovery story: bull or base case when $AVTR shared guidance [54:01] Return on due diligence work with $AVTR, perception as a complicated business [1:02:04] Tail risks [1:06:39] Final thoughts Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

Derek Pilecki, CFA, Managing Member and Portfolio Manager at Gator Capital Management, joins the podcast to have a general conversation about the Financial Sector: banks, crypto and more! For more information about Gator Capital Management, please visit: https://gatorcapital.com/ Chapters: [0:00] Introduction + Episode sponsor: Tegus [1:49] What's most interesting to Derek in Financials sector today / $NYCB / Valley and Western Alliance [12:28] Western Alliance [19:43] Capital One and thoughts on Discover merger [28:36] Overall regulatory environment with banks and financials [30:51] Election and how that affects banks [33:26] Robinhood [41:47] Fannie's and Freddie's [47:50] $NYCB cont'd. [50:32] Thoughts on buybacks based on conversations with bank CEO's [1:01:18] Why Derek thinks banks are below average businesses Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

Chris Waller, Founder and CIO at Plural Investing, joins the podcast to discuss his thesis on TerraVest Industries Inc. (TSX: TVK), a manufacturer of home heating products, propane, anhydrous ammonia (“NH3”) and natural gas liquids (“NGL”) transport vehicles and storage vessels, energy processing equipment and fiberglass storage tanks. For more information about Plural Invest, please visit: https://www.pluralinvesting.com/ Plural Investing write up on TerraVest $TVK.TO: https://static1.squarespace.com/static/57eff176e58c621a298bfa61/t/65c1736ea99cbe30a72634d1/1707176815309/Plural+Investing+Report+on+Terravest+%282024.01.24%29.pdf Chapters: [0:00] Introduction + Episode sponsor: Tegus [1:54] What is TerraVest and why are they so interesting to Chris [4:51] Why is TerraVest underfollowed? [6:47] Why can their acquire at a discount and $TVK.TO's business model, overview, value proposition [14:21] Propane tank industry / location moat [19:44] How TerraVest pulls off the reduction in steel costs [22:27] Why hasn't Private Equity stepped in to roll up the propane tank industry? [25:48] How does TerraVest get labor cost down? [29:35] Tanker and Boiler businesses / recent Highland Tanks acquisition [35:13] Terminal value questions [40:49] Management, insider ownership and incentives [44:50] Valuation / Organic growth / How much accretive acquisitions to drive real performance here [51:29] Cyclicality[54:27] Capital allocation [57:40] $TVK.TO bear case [1:00:46] Final thoughts Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

Drew Cohen from Speedwell Research, joins the podcast to discuss his thesis on Constellation Software (TSX: CSU), who acquires, manages and builds vertical market software businesses. For more information about Speedwell Research, please visit: https://speedwellresearch.com/ Speedwell Research profile on Constellation Software: https://speedwellresearch.com/companies/reports/constellation-software/ Chapters: [0:00] Introduction + Episode sponsor: Tegus [1:41] Who is Constellation Software and why are they interesting to Drew [6:05] How $CSU.TO is scaling their business model / competing with private equity [13:00] Reverse DCF, deploying capital, competing now with other billion dollar software businesses [21:02] Mark Leonard - is $CSU.TO a jockey bet / capital allocation / sellers [28:32] $CSU.TO - what takes this company out [30:57] AI risk? [32:52] Price increases / TransDigm comparison / competition risk [40:08] $CSU.TO vs. parking capital at index fund / likelihood of deploying at least 50% of their cash flow over next 10-ish years [45:07] Operating synergies with 6 verticals? Why not more spin-offs? [47:07] Additional worry about $CSU.TO - changing incentive system [51:58] Aside from Berkshire, what are other examples of Constellation-like culture [54:57] Speedwell's favorite write-ups he's done recently + quick thoughts on $RH Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

It's time to welcome back Chris DeMuth for his monthly state of the markets. For this February 2024 edition, Chris shares his thoughts on New ETF $BOXX, Bitcoin and crypto in general, are we in a $BTC mania and Anti-trust outlook - election proxy (using Capital One / Discover as an example). For more information about Rangeley Capital, please visit: http://www.rangeleycapital.com/ Chapters: [0:00] Introduction + Episode sponsor: Tegus [2:09] Thoughts on New ETF $BOXX [18:55] Bitcoin and upcoming "halving" / current thoughts on crypto in general [30:44] Are we in a $BTC mania? [33:15] Anti-trust outlook - election proxy? Using Capital One buying Discover as an example [43:11] Final thoughts Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

Austin Crites, CIO at Aurora Financial Strategies, joins the podcast to discuss his thesis on The Lovesac Company (NASDAQ: LOVE), the home furnishing and technology brand best known for its Sacs, The World's Most Comfortable Seat. For more information about Aurora Financial Strategies, please visit: https://www.aurorafinancialstrategies.com/ Chapters: [0:00] Introduction + Episode sponsor: Tegus [1:35] Overview of Lovesac $LOVE and why are they so interesting to Austin [5:44] Bear case: One product company + cheap knockoffs [12:02] Repeat business / Crocs comparison / Reddit and TikTok Lovesac / Target customers [21:27] Shark Ninja comparison [26:09] Valuation / Competitive analysis (La-Z-Boy, Restoration Hardware) [31:07] Inventory turns [34:56] Short interest [38:48] Management and insider ownership [41:27] Barter revenues [43:43] $LOVE final thoughts Today's episode is sponsored by: Tegus This episode is brought to you by Tegus, the future of investment research. From the beginning, Tegus has been committed to creating efficiencies in the research process by making it easy to access the content that investors need to get to differentiated insights. Today, they’re taking it one step further by bundling qualitative content, quantitative data, and better automation and technology together in the same platform. Instead of piecing together data from fragmented sources, just log in to Tegus to get expert research, company- and industry-specific metrics and KPIs, SEC filings, and more, all under the same license cost. You can even take your work offline with an Excel Add-in that updates almost any model with the latest financial data — keeping all your custom formatting intact. Tegus is the fastest way to learn about a public or private company and the only platform you’ll need for fundamental research. To try it free today, visit Tegus.com/value

Pedro Sousa, Principal at Oxy Capital, joins the podcast to discuss his thesis on The Gym Group plc (LSE: GYM) - founded in 2007, the Gym Group is the original provider of high quality, low cost gym facilities in the UK. For more information about Oxy Capital, please visit: https://oxycapital.com/homepage/ Chapters: [0:00] Introduction + Episode sponsor: Fundamental Edge [2:05] Overview of Gym Group $GYM.L and why it's interesting to Pedro [9:09] Competitive analysis: Basic-Fit and PureGym [18:00] Raising prices and margin expansion [25:40] Replacement cost and margin of safety [31:29] Discounting of membership in October 2022 [33:42] New CEO in Summer 2023 [37:29] Three-tier pricing membership [41:14] Normalized earnings levels looks like and free cash flow [53:18] EBITDA multiples [56:35] Bear case on $GYM.L [1:07:28] Final thoughts 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. Use the code "10YAVP" for a 10% discount. 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

Evan Tindell, CIO of Bireme Capital, joins the podcast for his fourth time to discuss his thesis on British American Tobacco p.l.c. (NYSE: BTI), the company engages in the provision of tobacco and nicotine products to consumers worldwide. For more information about Bireme Capital, please visit: https://www.biremecapital.com/ Evan's $BTI write-up in Bireme Capital's investor letter: https://www.biremecapital.com/blog/december-2023-investor-letter Chapters: [0:00] Introduction + Episode sponsor: Fundamental Edge [2:04] Overview of British American Tobacco Company and why they are interesting to Evan [6:42] What Evan thinks his edge is with $BTI / comments on stock performance over the last few months [11:58] Vaping, regulations and how this affects $BTI [18:38] $BTI annual report [25:24] Competition from non-regulated folks / legal liabilities for new $BTI products / menthol cigarette ban [34:00] Doom-looping on cigarette industry [38:00] $BTI's ownership stake in ITC (formerly known as India Tobacco Company) [43:43] "Sum of the Parts" stocks[51:07] $BTI capital allocation strategy 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. Use the code "10YAVP" for a 10% discount. 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

Alex Morris, Founder of TSOH Investment Research, returns to Yet Another Value Podcast for the fourth time to discuss his recent article, "Letting Winners Run." For more information about Alex Morris and subscribe to his research service, TSOH Investment Research Service, please visit: https://thescienceofhitting.com/ You can Follow Alex Morris on Twitter @TSOH_Investing: https://twitter.com/TSOH_Investing "Letting Winners Run" article: https://thescienceofhitting.com/p/letting-winners-run Chapters: [0:00] Introduction + Episode sponsor: Alphasense [1:47] Letting winners run thesis [6:23] Hindsight bias [8:26] Cash flow considerations [12:07] Selection bias [14:36] Examples of the "Letting Winners Run" strategy (forever business vs. 5-year/20-year outlooks) [18:55] How "Forever Business" in media has changed over the years [21:46] Management [26:07] Is there something unique about big tech [29:08] Thesis drift + examples [38:03] Knowing when to sell "forever business" [41:56] "Beautiful Sunset" principle [45:27] Dismissing banks an example of dismissing "letting winners run" [51:06] Why "Best Ideas Funds" fall short [53:40] Final thoughts and closing 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 January 2024 edition, Chris discusses anti-trust, Spirit decision, US Steel - Nippon, banks and $LQDA. For more information about Rangeley Capital, please visit: http://www.rangeleycapital.com/ Chapters: [0:00] Introduction + Episode sponsor: Alphasense [1:53] Anti-trust + Spirit decision [9:00] Judge's decision in Spirit case + how antitrust lawyers reacted before and after the decision [15:45] Future of anti-trust and mergers [21:32] US Steel - Nippon [28:33] Banks [30:32] $LQDA 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.

Jon Hook, CFA, Senior Analyst at Voss Capital, joins the podcast to discuss his thesis on R1 RCM Inc. (NASDAQ: RCM), a leading provider of technology-driven solutions that transform the patient experience and financial performance of healthcare providers. For more information about Voss Capital, please visit: https://www.vosscap.com/ Chapters: [0:00] Introduction + Episode sponsor: Alphasense [1:30] What is $RCM and why are they interesting to Jon Hook [3:47] Why tax is 4-6% (vs. 2% or 20%) [6:20] Jon Hook's background [8:50] $RCM elevator pitch [15:43] $RCM going concerns: addressing short reports, challenging 2022, management change [22:36] Sutter roll-out [27:37] Network effects / competitive landscape [32:32] Addressing add-backs, adjusted EBITDA [37:10] Addressing stickiness of the business [40:53] Providence acquisition and capital allocation strategy [48:22] Final thoughts on $RCM short report [52:11] Coder shortage [54:31] Optum ($RCM largest competitor) [58:33] $RCM 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.