Food for Thought #49 // Links

This time the most interesting content I stumbled over includes: SThree, market game theory & the beauty contest, ChmoMetec, going against groupthink, McAfee goes private, Viasat (VSAT) acquires Inmarsat, US housing …

UKDI sold and explains the business of SThree: A world-leader in STEM recruitment (LINK)

Macro Ops about Market Game Theory and the Beauty Contest.

Macro Ops on ChemoMetec A/S (CHEMM), a world class razors and razor-blades business.

Swen Lorenz with his newest weekly dispatch* about The value of going against groupthink. I relate to a whole lot of observations in his post. And a great write-up covering Petershill Partners* – they take minority stakes in alternative asset managers, were spun of from Goldman Sachs and still profit from being entrenched in the unparalleled GS ecosystem.

Bonsai Partners’ Q3 2021 Investor Letter. Includes: Chinese politics, Greentown Management (9979 HK), Boozt.

Collaborative shares a good piece about Truck Drivers.

The Economist with The supermajors have an LNG problem – State-owned giants are squeezing them out of megaprojects; and The flywheel delusion: Uber, DoorDash and similar firms can’t defy the laws of capitalism after all.

Peak Housing might be upon us. Related: Marc Rubinstein from netinterest with iBuy, iRent, iLose.

Many of us might know about Capital Cities from The Outsiders. I enjoyed reading the transcript (always prefereed by me vs podcasts/videos):

Company news

Conor from ValueSits had two Items of Interest for me. He made me aware of two transactions providing a good data point for potentially fair valuations for two of my companies supporting my confidence in holding on to two of my top three positions.

  • McAfee goes private for ~17.8x LTM EBITDA. CHKP US has a much better quality I think (B2B, thus more sticky, growth, margins) and only trades at 16.5x (but EV only 12.5x)
    • drawback: CHKP is very unlikely to be taken private by a PE firm, if at all by founders, and even then Israel intelligence units might have a say?
  • US-listed satellite business Viasat (VSAT) is acquiring UK peer Inmarsat for $7.3bn, or 10x Ebitda. SESG LX‘s EV is about 6.5x Ebitda and liekly too cheap: o3b POWER assets, shortly in operations with a very good backlog (commercial interest), networks in general growing strong, successful turnaround in the making, on track for $4bn from FCC and potentially other positive one-offs
    • drawback: Luxembourg would likely oppose giving up SES, making it more likely that SES will buy other players in a consolidating industry

Best and happy investing, s4v


* marks an affiliate: if you want to become a paying member to Swen’s world-class content please use my link. hte price for you is the same. I might receive a referral bonus (money).

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