I wanted to take a closer look for some time. Finally started some weeks ago and already bought a (starter?) position …
This is not investment advice. Please read the disclaimer. I might own discussed stock(s) currently or at a later time. I might transact in any securities at any time.
Polish waste management company Mo-BRUK has its assets in place to benefit greatly from the European and Polish push for a greener and more circular economy. Broader ESG trends should act as a secular tailwind. MBR has a decent quality but is priced for no growth or stark unit price declines which do not seem that likely considering recent political developments in Poland. A sustained growth case with strong profitability is certainly not priced in.
Company introduction
Mo-BRUK SA is a Polish company offering waste management services. The company collects, recovers, and disposes of hazardous and non-hazardous waste. Mo-BRUK also constructs concrete roads, owns, and operates gasoline filling stations, vehicle inspection stations, and car washes.
Its ordinary shares (MBR PW) were first listed in 2010. Non-listed preferred shares exist and come with two voting rights a share. Its market capitalization sits at a small PLN 1.3bn or USD 330m.
The company post very high returns on equity or ROE for the last few quarters and seems to have ample growth potential, which should be very profitable at such a ROE level. Overall, it might resemble Waste Management (WM US) or some of its attributes. …
I own Mo-BRUK stocks (MBR PW).
Addendum: I believe utilization is the one (more or less) controllable key variable that the company/management needs to maximize. I thought about it when re-reading somewhere that most companies have one (or a few) economic variables that they neeed to maximize or minimize to create a lot of economic value.
Addendum2: I found a great write up on VIC. It is the same from SA, but comes with a few great message threats which offer true insights, incl. one negative message that likely resulted in a sell-off, but was later refuted. Sadly, I do not remeber, if I looked for VIC write-ups. If I did, the write-up might have been still behing the 6-months wall.
Nov 9, 2021: Strong 9m-2021 results. Slides are beautiful for include less useful details (thread)
searching 4 value 
I own also but also have Geotrans SA
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I looked quickly at goetrans. Bigger language barrier. Business seemed more about landfills?
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I didn’t do a deep dive (only a small position as im more like Lynch) but the ROIC and DCF is great also. It is super boring 🙂
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Last Qs were not great from headline numbers?
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There is always a reason for a huge discount. Europe treats Poland like Mexico, unsexy business compared to Tesla but I think regulations (more Socialism) in Germany will increase so Poland will benefit (more waste and manufacturing to Poland). In 10 years Im sure there will be waste even if more recycling. Few bad quarters are no issue and small position. I am moving to Terry Smith type investing so in 12months I might dump some of these cheap stocks, if of interest I can send you his book?
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I am interested 🙂
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Andrew did a video https://www.youtube.com/watch?v=rpbvfgYpT0c
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not the kind of video i like too much personally (like so many! youtube videos)
too many people looking at some headline numbers and extrapolating them in some valuation tool
might be more useful/value-add here to look into why sales were growing so much
CFFO minus maintenance CapEx = FCF that is strongly growing? I believe in one can’t have the cake and eat it too
sure, one can take it as a quick check if worth to take a deeper look
how can ‘super investors’ hold a position in such a small cap with even smallerfloat?
thanks for the link anyways
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Bit hard to have high quality and huge discount (I am yet to learn this lesson fully). Too small for most investment funds as you mentioned. Exposure can make the thesis play out quicker (good or bad) as there are more eyeballs looking at it. So if your thesis is good and market runs too hot you might get a chance to trim.
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