<div class="subscription-widget-wrap-editor"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Stock Analysis Compilation! Subscribe for free to receive new posts and support my work.</p></div><form class="subscription-widget-subscribe"><input class="email-input" name="email" tabindex="-1" type="email" /><input class="button primary" type="submit" value="Subscribe" /><div class="fake-input-wrapper"><div class="fake-input"></div><div class="fake-button"></div></div></form></div></div><p><em>Don't hesitate to send me any interesting research you come across.</em></p><p><em>You can also follow me on Twitter <strong><a href="https://twitter.com/StockCompil">@StockCompil</a></strong></em></p><p><strong>This article may be truncated by some email providers, so I suggest you read it directly on Substack for a better reading experience.</strong></p><div><hr /></div><h3><strong>Aristotle Small Cap Equity on Amentum Holdings $AMTM US</strong></h3><p><strong>Thesis:<br /></strong>Amentum Holdings (AMTM) is a well-positioned global engineering and technology solutions provider poised to benefit from increased government spending on digital modernization, cybersecurity, and next-generation technologies.</p><p><strong>Source</strong>: https://drive.google.com/file/d/15KgoNnlMavPoaNxb5BTw0hzPUSIEgN9N/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Amentum Holdings (AMTM) is a global engineering and technology solutions provider serving the US government agencies as well as international government agencies from allied nations. The company was formed by spin-off and merger of Jacobs Solutions’ (J) Critical Mission Solutions (CMS) and Cyber & Intelligence (CI) businesses with Amentum Holdings (private). As a result, existing J shareholders received shares of the newly formed combined company (AMTM). We maintained our position in AMTM as we believe the company is well positioned to benefit from government spending on digital modernization, cybersecurity, and next-generation technologies. The combination of the two companies exposes AMTM to new end market and geographic opportunities as well as operating scale efficiencies to drive incremental shareholder value.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Large Cap Growth on Amphenol $APH US</strong></h3><p><strong>Thesis:<br /></strong>Amphenol is poised for double-digit sales growth driven by increased demand for interconnect products in AI-enabled datacenters, supported by strong cash flow and diversified market exposure.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1iAqOeuF8EmmmyvdBUGrlk63P7-c_lkp6/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Amphenol is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors and interconnect systems; antennas; sensors and sensor-based products; and coaxial and high-speed specialty cable. The company estimates, based on recent reports of industry analysts, that worldwide sales of interconnect and sensor-related products were approximately $235 billion in 2023. The company aligns its businesses into three reportable business segments: Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems. The company sells products to customers in a diversified set of end markets.<br /><br />We see Amphenol benefiting from increased spending by cloud service providers, hyperscalers and enterprises on new datacenter architectures that enable AI computing technologies. The increased interconnect content that AI-enabled datacenters require, we believe, will underpin a double-digit sales growth outlook for the company over the next few years. The company has attractive end-market diversification, with exposure to both short-cycle and long-cycle, and no single end-market vertical represents more than 25% of revenues. Additionally, Amphenol has strong free cash flow generation, which has supported a successful M&A strategy that has driven enhanced advancement.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Maran Capital on APi Group $APG US</strong></h3><p><strong>Thesis:<br /></strong>APi Group is a promising long-term investment with growth potential, driven by management incentives and strategic business segment changes.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1ck_S4skyUsf0G4jod61zFUqVu8-SSMhm/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>APi Group (APG) "As we look to 2025 and beyond, we have great confidence in the business, our backlog, our balance sheet and our ability to continue to evolve APi into an even lower CapEx asset-light business focused on high-margin statutorily mandated services." – 3Q 2024 earnings call We have owned APi Group for a number of years—since it was a sub-$1 billion-dollar market cap, pink-sheet listed, de-SPAC. It is now a ~$10 billion market cap, ~$1 billion EBITDA, NYSE-listed behemoth (at least by our usual standards), but I still believe it can continue to appreciate from here. APi is a possible long-term, buy-and-build compounder, but it still has some “special situation” characteristics in the form of a few upcoming catalysts. Managements’ share-based compensation scheme matures at year-end 2026, so they are incentivized to maximize APG’s stock price at that time. The company recently announced that starting in 2025, it will report its HVAC business under the Specialty Services segment, which will allow it to highlight its core Life Safety business as a clean segment. This change will certainly highlight the quality of APi’s “best” segment, but it would also be a logical step if a split of the two major business segments were being planned. Regardless of whether APi executes a spin of its Specialty Services business, it will lay out strategic initiatives for both segments at an upcoming investor day in NYC. APi Group has made excellent progress on its last multi-year plan, and I’m looking forward to seeing what they will target in the next three-to-five years.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Rogue Funds on ASP Isotopes $ASPI US</strong></h3><p><strong>Thesis:<br /></strong>ASP Isotopes is poised for significant market impact with its undervalued medical isotope business, strong margins, and unique production capabilities in Silicon-28.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1hQSYBRrKbOnvY4Nrwy44aX4j7yGZpZvr/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>ASP Isotopes has the potential to transform the market perception of its business. During a recent visit, I was impressed by the team and the state-of-the-art facilities, highlighting the company's capabilities in producing medical isotopes. Currently regarded mainly as a nuclear entity, the true potential of its medical isotopes segment remains undervalued, with an anticipated growth in total addressable market (TAM). Their medical isotope business boasts margins exceeding 80%, facing minimal competition in many areas, and addressing critical isotopes not presently in production, vital for cancer treatment. The nuclear business has gained traction, evidenced by recent agreements with TerraPower and NECSA. The production of Silicon-28 is set to commence soon, and we can expect academic institutions to begin showcasing its benefits, enhancing our understanding of the TAM. With their Silicon-28 facility, they are positioned to produce ten times more Silicon than their nearest competitor and are unique in providing it in a directly usable form. This represents a significant opportunity for the Fund, already yielding substantial returns. Our large position at cost will contribute to maintaining strong impacts on the Fund's volatility. We are very optimistic about this investment, which stands as our largest position and will continue to hold this status for the foreseeable future, with no shares sold since the initial short report.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>O'Keefe Stevens on Beyond $BYON US</strong></h3><p><strong>Thesis:<br /></strong>Beyond’s asset-light model, strategic partnerships, and undervalued investments position it for significant growth and operational leverage.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1nHuNO-ESW_BHCm7ppm-aTO3loRCCDddI/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Beyond operates as an asset-light e-commerce company, owning and managing a portfolio of retail brands such as Overstock, Bed Bath & Beyond, Baby & Beyond, and Zulily. With a high EBITDA-to-free-cash-flow (FCF) conversion and low capital requirements, it is positioned to scale efficiently. Recent acquisitions, including Bed Bath & Beyond (2023) and Zulily (2024), have expanded their reach while revealing management missteps and growing pains related to brand integration and operational execution.</p><p>Thesis<br />Leadership and Vision - Chairman Marcus Lemonis employs a hands-on, performance-driven leadership style. His compensation is equity-based, with options linked to significant stock price appreciation ($45, $50, and $60 strike prices).</p><p>Asset-Light Model - Beyond's capital-light approach minimizes fixed costs and facilitates high FCF conversion, with incremental return on invested capital (ROIC) near 100%. This positions the business for profitable growth as revenue scales.</p><p>Valuation Opportunity - Beyond trades at distressed levels, with a market cap of $234m and a price-to-sales ratio significantly below peers. Analyst FY25 revenue estimates of $1.49B are overly pessimistic and extrapolate recent trends, which are likely to reverse. Market share gains and a stabilizing furniture market should drive revenue above estimates, bolstered by improving customer acquisition metrics and app usage trends.</p><p>Strategic Partnerships - A recent $25m investment in Kirkland's offers multiple synergies:</p><p>A brick-and-mortar presence for Bed Bath & Beyond through “shop-in-shops” and standalone stores (both operated by Kirkland’s), as Beyond will maintain an asset-light model with no retail footprint or inventory ownership.</p><p>Reduced e-commerce return costs by utilizing Kirkland’s locations.</p><p>Enhanced brand visibility to address consumer misconceptions regarding Bed Bath & Beyond’s bankruptcy.</p><p>Optionality in Private Equity Investments - Beyond's investments in Tzero (blockchain-enabled securities trading) and GrainChain (digital agriculture solutions) provide mispriced optionality. Both assets are valued conservatively on the balance sheet despite positive developments such as Tzero’s regulatory approvals and GrainChain’s growing traction in the industry.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Focus CM on Burford Capital $BUR LN</strong></h3><p><strong>Thesis:<br /></strong>Burford Capital is a global litigation finance company showing strong operational growth and potential for recovery in stock valuation despite recent legal challenges and a significant ongoing case against Argentina.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1b4PdSbmYb4wTInsWfBhSJYQl4kqO8_s-/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Burford Capital (BUR, BUR:LN)<br /><br />Price (12/31/24): $12.75 USD<br />Market Cap (12/31/24): $2.9 billion USD<br />Stock Loss (2024): -18.3%<br />Portfolio Weight: 24.1%<br /><br />Description<br /><br />Burford is a global litigation finance company, which in essence means that they fund and otherwise monetize commercial lawsuits in exchange for a portion of the proceeds received. Burford trades both on AIM (the junior London stock exchange) in Great British Pounds (GBP) and on the New York Stock Exchange in US Dollars (USD).<br /><br />2024 — Continued Growth<br /><br />Business continues to be conducted as usual, with continued high levels of commitments and deployments and continued strong IRRs. Realizations and realized gains were up significantly for the first three quarters of 2024 vs. 2023, up 39% and 49%, respectively, hitting records for the company on top of an already strong 2023. That’s purely counting cash gains, not including any fair value adjustments. Their income from managing third-party funds, especially their Sovereign Wealth Fund arrangement, remains strong as well, in the ~$40-$50 million range for 2024.<br /><br />In last year’s update, we highlighted how Burford has a number of ongoing cases with potential for YPF-like returns, specifically Sundance Resources’ cases against Congo and Cameroon, Greenland Minerals’ case against Greenland and Denmark, and the Sysco set of antitrust cases. Sundance has advanced their case significantly, with their arbitration hearing against Congo having taken place in November and their hearing against Cameroon scheduled to take place right now as I write these words. There was some discussion mid-year of Congo settling the case, but despite efforts on their part, they did not ultimately produce the cash needed to finalize the settlement, and the cases against both Congo and Cameroon are proceeding normally.<br /><br />In the Greenland Minerals case, there is not much to report other than that the arbitration tribunal has decided to bifurcate the proceedings, judging first on jurisdictional issues and then on the merits. This will delay ultimate resolution, which is years away at earliest, assuming that Greenland Minerals will prevail on the jurisdictional question, which we expect.<br /><br />The Sysco matter has taken a turn for the worse. The judge overseeing the pork and beef cases refused to allow Burford to substitute for Sysco in the case, despite Burford having purchased Sysco’s rights. This decision greatly complicates Burford’s ability to pursue their rights, especially given Sysco’s recalcitrance in pursuing the case themselves. Burford, naturally, is appealing this decision, but they face an uphill battle overturning the lower court given the wide discretion typically given to judges on such matters. This doesn’t affect the chicken or turkey cases, which do proceed with Burford as plaintiff, but the pork and beef cases are a good chunk of the damages. Separately, it was ruled that Pilgrim Pride’s settlement with Sysco was indeed valid and effective, over Burford’s complaints and arguments to the contrary. All this points to Sysco as having a sharply lower chance of being an outlier winner for Burford.<br /><br />YPF and Argentina<br /><br />We continue to view Burford as highly undervalued on the basis of their regular, steady business. Nevertheless, the YPF litigation continues to dominate investor sentiment, naturally so given its massive size. Over 2024, the case has continued to plod through the courts, with Burford pursuing varied avenues of enforcement and discovery of relevant assets in attempted enforcement of the judgement against Argentina. Mostly, this is not expected to produce enough assets to actually satisfy the massive $16 billion judgement (plus accruing interest). Rather, the point is to increase pressure on Argentina, essentially harassing them legally until it makes more sense for them to come to the negotiating table to settle than to continue trying to evade payment.<br /><br />In short, Burford continues to pursue various legal tactics in the US and abroad, and Argentina’s legal team continues to kick the can down the road with various delaying tactics and motions. Burford has won most of these skirmishes so far; indeed, Judge Preska’s exasperation with Argentina’s delaying tactics comes through quite clearly in her written decisions.</p><p>Argentina’s legal wrangling is in sharp contrast to the conciliatory tone from the political sphere. Argentina’s President, Javier Milei, continues to profess interest in Argentina returning to the international financial fold and paying its debts and legal liabilities, including Burford’s claim specifically. Argentina’s economy has also been recovering under the Milei administration’s reforms, which gives hope that eventually there will be a mutually acceptable settlement.</p><p>We continue to expect settlement to be the ultimate endgame here, after Argentina exhausts all its legal appeals. Although the pace of legal matters is notoriously difficult to predict with any accuracy and delays are always possible, we do think that the appeals court is likely to rule on the YPF appeal by late 2025. When negotiations will result in a settlement is anyone’s guess.</p><p>Conclusion</p><p>Despite the underlying good news for Burford the company, Burford the stock is down quite a bit, especially when considering the market’s continued surge forward. But with the underlying company firing on all cylinders, we expect market sentiment to eventually turn and reward patient shareholders. </p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle International Equity on Cameco $CCO CN</strong></h3><p><strong>Thesis:<br /></strong>Cameco is well-positioned to benefit from the robust demand for nuclear energy, supported by its tier-one assets, strategic contracts, and increasing production outlook.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1GaBovvRVStYGoQYwu2RQq7BC7qThZRPT/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Cameco, one of the world’s largest uranium producers, was a major contributor during the period. With the continued focus on artificial intelligence and clean energy, the demand for nuclear energy remained robust. Some of the largest companies in the world, such as Amazon, Google and Meta, announced nuclear power agreements in the quarter. Given Cameco’s tier-one assets in reliable jurisdictions, proven operating experience and strong reputation, we believe the company is in a unique position to benefit as various industries and governments pursue clean, reliable and scalable sources of energy. Correspondingly, Cameco increased its production outlook, having already secured commitments that net an average of 29 million pounds per year over the next four years. We believe Cameco’s continued ability to efficiently increase production while securing long-term contracts will lead to sustainably higher levels of normalized FREE cash flow. While its Canada-based mines and Westinghouse unit are executing well, production was recently suspended at Cameco’s Inkai joint venture in Kazakhstan. We believe production will restart soon and note that Cameco’s share of Inkai’s production amounts to less than 10% of total Cameco volumes, a figure that can be offset with increased production at the company’s MacArthur River and Key Lake mines in Canada.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Maran Capital on Clarus Corporation $CLAR US</strong></h3><p><strong>Thesis:<br /></strong>Clarus is undervalued with a strong balance sheet, accelerating profitability, and trading at significantly lower multiples compared to peers.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1ck_S4skyUsf0G4jod61zFUqVu8-SSMhm/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Clarus has a fortress balance sheet (net cash of over $1/sh on a sub-$5 stock), and I believe is trading at a fraction of private market value. I believe profitability should accelerate meaningfully this year and that sell-side estimates are conservative. The stock is trading at around 6x EBITDA and less than 0.5x sales. Comps have traded or transacted at more than double (in some cases quadruple) those metrics. Given the strong balance sheet, profitability, and growth, time is on our side.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aoris on Compass Group $CPG LN</strong></h3><p><strong>Thesis:<br /></strong>Compass Group is the world's largest contract catering firm, benefiting from a growing trend of outsourcing catering services and gaining market share, particularly in the US and Western Europe.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1JAYOxkvIVbXtAGYuTL7f6eUaBuo0s_Gy/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Compass Group is the world’s largest contract catering firm. It benefits from an ongoing shift of organisations across many end markets to outsource their catering services, and Compass has been a consistent market share gainer in this growing market. While its largest and strongest market is in the US, Compass has made considerable strides over the last few years in strengthening and improving its operations in Western Europe and the UK.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Core Equity on CrowdStrike Holdings $CRWD US</strong></h3><p><strong>Thesis:<br /></strong>CrowdStrike Holdings is well-positioned for substantial growth in the cloud cybersecurity market due to its innovative products, early-mover advantage, and strong customer retention in the face of increasing cyber threats.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1Ya7--6TH_KnuLQ1qoW_vyN7omeAyZInh/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>CrowdStrike provides cybersecurity products and services that offer endpoint protection and threat intelligence solutions, enabling customers to prevent damage from targeted attacks, detect advanced malware and search all endpoints. The company's open cloud architecture enables it and third-party partners to rapidly innovate, build and deploy new cloud modules that can provide customers with enhanced functionality across a myriad of use cases. We see the cloud cybersecurity market as positioned to experience strong growth over the next few years, driven by continued migration from on-premises to cloud-based architecture. We believe CrowdStrike can benefit from this trend due to its early-mover advantage, multiple product offerings and native integrations with leading cloud platforms. The increasing threats from state-sanctioned cybercriminals using high-performance computing and AI necessitate higher spending on advanced cybersecurity products. The total addressable market (TAM) is projected to grow significantly over the next four calendar years. Additionally, CrowdStrike's cloud-native architecture and unified platform approach provide competitive advantages, resulting in high customer retention and widespread adoption of multiple modules.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Maran Capital on CTT (Correios de Portugal) $CTT PL</strong></h3><p><strong>Thesis:<br /></strong>CTT is a rapidly transforming privatized postal operator in Portugal with strong growth in its express and parcels business, strategic acquisitions, and significant future upside potential.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1ck_S4skyUsf0G4jod61zFUqVu8-SSMhm/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>As a reminder, CTT is the privatized postal operator in Portugal. It holds the country’s monopoly postal contract, a leading Iberian express and parcels (“E&P”) business (think FedEx or UPS), a financial services business, and ownership of Banco CTT and a portfolio of legacy real estate assets. Over the past few years, CTT’s express and parcels business has taken market share across the Iberian Peninsula, cut costs, and improved margins. As you would expect, parcels is a fairly seasonal business—there is a big Christmas/holiday surge every fourth quarter. One datapoint that highlights CTT’s rapid growth is that in the third quarter of 2024 it generated more revenue in parcels than it did in the fourth quarter of 2023! Elsewhere in CTT’s portfolio, we’ve seen monetization of a piece of the bank, sales of parcels of real estate, and repurchases of approximately 10% of its shares.</p><p>You’ve heard most of this before. It’s not as if the market has completely missed these changes—the stock has more than doubled over our holding period. But despite this appreciation, future upside may be as high as it has ever been. Further realizations of the sum-of-the-parts values are likely, shares are being repurchased at the maximum possible rate in the open market, and most importantly, the parcels franchise has dramatically improved its competitive positioning through a series of core operational improvements as well as several savvy deals.</p><p>CTT’s ongoing transformation was punctuated by a complicated series of transactions announced in December that the market is still digesting. First, CTT announced the purchase of Cacesa—a Spanish customs clearing, warehousing, and sorting business—for approximately 5x EBIT, a deal that is expected to be 15-20% accretive to CTT’s earnings per share. Second, CTT announced the first phase of a JV with DHL in Portugal and Spain. This was consummated by DHL purchasing 25% of CTT's express and parcels business at an implied enterprise value of €482 million, or about 12x EBIT. Yes, in these two transactions, CTT was a buyer at ~5x and a seller at ~12x.</p><p>It just so happens that the cash coming in from DHL is about equal to the cash going out for Cacesa, such that the net impact of both transactions is roughly cash neutral for CTT. But the EBIT accretion from the deals should be around €10 million (on a base of ~€80-90 million in 2024, per the latest guidance). While this oversimplifies things, CTT essentially got €10 million EBIT, worth ~€120+ million at the value DHL placed on the business, for “free.” Synergies are still to come.</p><p>An updated, simplified sum-of-the-parts valuation for CTT would peg the bank’s value at €300 million; real estate: €200 million; mail and financial services: €200-300 million; and E&P, pro forma for the DHL JV, at €600 million to €1 billion. In total: €1.3-1.8 billion on ~130 million (and falling!) shares, or a total potential fair value for the stock of €10-14/sh (compared to the recent €5-6 trading range).</p><p>Management is well aligned via share ownership and an equity plan with aggressive targets. They will likely hold a capital markets day this year to highlight the recent acquisitions and lay out a new three-year plan. The last three-year plan included an EBIT target of €100-120m for 2025, which I believe CTT will achieve. I also expect further monetization of additional real estate and the bank (possibly an outright sale of the latter). With some of these catalysts and continued execution on core operations—and more and more people waking up to the transformation that has already occurred—I think CTT is positioned to generate continued solid stock returns from here.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Patient Capital on CVS Health Corp. $CVS US</strong></h3><p><strong>Thesis:<br /></strong>CVS Health Corp. is undergoing a turnaround with management upgrades and a clear pathway to improving margins, leveraging its diverse healthcare assets while offering an attractive 5.8% dividend yield.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1sO9Vmq0oquxlJ4epdg52a2I-8mjwgg2-/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>CVS Health Corp. (CVS) struggled throughout the year following a number of disappointments related to their Medicare Advantage business. While this had a negative impact on the near-term financials, the issues are well understood, and changes are already being made for the 2025 program. We see a clear pathway to improving margins throughout 2025 in all areas of the business. Furthermore, the company has upgraded their management team promoting David Joyner to CEO and hiring former UnitedHealth Group executive Steven Nelson to run the managed care business. On a longer-term basis, we continue to think CVS has an attractive combination of assets owning a healthcare benefits business (Aetna), a pharmacy-benefits manager (Caremark), an in-home evaluation business (Signify Health) and in-home primary care business (Oak Street Health) supporting the industry transition to a value-based care model. As the company works to implement the turnaround, the company has an attractive dividend yield of 5.8%.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Heartland Value Fund on Delek US Holdings, Inc. $DK US</strong></h3><p><strong>Thesis:<br /></strong>Delek US Holdings, Inc. is substantially undervalued at $17 with an estimated worth of $31 per share, driven by potential recovery in diesel demand and strategic management actions.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1m4P2hyocA5wEmibTMlR9xjfc7ux80a6u/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>In some cases, those four price targets have helped us remain patient, even under challenging circumstances. Take Delek US Holdings, Inc. (DK), an energy company whose refineries produce petroleum products for the transportation industry. Since April, the stock has been cut nearly in half, amid weakening diesel demand and tighter refining margins. However, there are signs of a recovery for trucking on the horizon, which could start to materialize in the spring or summer of 2025. Barring any shock to the economy, this should provide a boost to refiners. In the meantime, management is creating its own tailwind, as it is focusing on unlocking the sum of the parts of the combined company. The company recently announced the sale of its 249 gas stations and convenience stores, the proceeds to be used toward a $400 million share repurchase program. Despite these efforts, we still believe the sum of the parts of Delek is worth substantially more than the current share price of $17. Based on its refining operations, convenience stores, stake in Delek Logistics Partners LP, and other assets, we believe DK is worth $31 a share. The CEO seems to agree that the stock is substantially undervalued, as he has recently been using his personal funds to purchase DK shares. Admittedly, we were too early in initiating a position in DK at the start of this year. When we moved the company from our watchlist to the portfolio, we set a max downside loss price target of $16 a share. While disappointed in the stock’s slide to $17, it was an extreme valuation level that we anticipated might occur. In our view, the sum-of-the-parts thesis should punch through this overhang and lower oil prices, which serves as a feedstock for the industry, and could provide a relative safety net. Whenever the price of West Texas Intermediate (WTI) has gone negative on a year-over-year basis over the past 30 years, as it did earlier this year, shares of refiners have outpaced the energy sector 75% of the time, with an average relative outperformance of 25%. We are also encouraged by strong insider buying not just at Delek but at several other refiners. An equally hopeful sign: Sophisticated buyers like Carlos Slim and Carl Icahn have also been increasing their exposure to this space lately.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>O'Keefe Stevens on Donnelley Financial Solutions (DFIN) $DFIN US</strong></h3><p><strong>Thesis:<br /></strong>Donnelley Financial Solutions (DFIN) is a leading provider of compliance and regulatory solutions with a strong focus on recurring revenue growth and robust market positioning, despite facing short-term challenges.</p><p><strong>Source:</strong> https://drive.google.com/file/d/1nHuNO-ESW_BHCm7ppm-aTO3loRCCDddI/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Donnelley Financial Solutions (DFIN) is a market leader providing compliance, regulatory, and transaction-related solutions to corporations and investment companies. It operates two main segments:</p><ul><li><p>Capital Markets (68% of TTM revenue) - Services include IPO filings, M&A support, and ongoing compliance solutions.</p></li><li><p>Investment Companies (32% of TTM revenue) - Aids investment management firms (mutual funds, ETFs, and alternative investments) with ongoing regulatory filing requirements.</p></li></ul><p>Unlike competitors offering only partial services, DFIN stands out as an end-to-end provider with solutions encompassing a business’s lifecycle.</p><p>Thesis<strong><br /></strong>1. Recurring Revenue Growth - Software solutions account for $322m in TTM revenue and are experiencing rapid growth with high incremental margins. Management projects mid-teens growth for this segment, supported by improvements in retention (Gross Retention Rate increased from 89% in Q1 2024 to 93% in Q3 2024).</p><p>2. Event-Driven Business Recovery - Transactional revenue tied to M&A and IPOs (~25% of TTM revenue) will benefit from improving activity levels.</p><p>3. First-Mover Advantage in Regulatory Solutions - DFIN's Tailored Shareholder Reports (TSR) platform is expected to generate $11m-$12m in annual recurring revenue, capitalizing on new SEC mandates.</p><p>4. Strong Competitive Position - Leading SEC filing agent for funds and corporations. Despite industry headwinds, growing market share in the Virtual Data Room (Venue) segment.</p><p>5. Management Alignment - Executive incentives are tied to software sales growth and EBITDA margins, aligning with shareholder interests.</p><p><strong>Why the Opportunity Exists<br /></strong>1. Stock Overhang - Director Jeffrey Jacobowitz, previously a 7.7% shareholder, has significantly reduced his stake, creating near-term selling pressure and suppressing the stock price.</p><p>2. Transition Challenges - The shift from transactional to subscription models has temporarily increased churn and subdued growth metrics.</p><p>3. Market Skepticism - Weak IPO and M&A activity has overshadowed the company’s transition to higher-margin recurring revenue streams.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Global Equity on DSM-Firmenich $DSM NA</strong></h3><p><strong>Thesis:<br /></strong>DSM-Firmenich is well-positioned for future growth despite recent challenges, leveraging its merger synergies, divestitures, and strong customer relationships to enhance profitability and market share.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1rQSrTK_PTmgPF-Oq0BXdbtwYjYOIB-84/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>DSM-Firmenich (DSM), the Dutch-Swiss nutrition, health and bioscience company, was one of the largest detractors. Despite a decline in share price, the company continued to increase its sales across segments following customer destocking in 2023. Within its largest segment – Perfumery & Beauty – we believe DSM will uniquely benefit, as customers look to differentiate their products and increase fragrance dosage levels. The company has also made progress on the integration of its 2023 merger with Firmenich, a catalyst we previously identified, which we expect to create further sales and product development synergies. With low leverage, the company is in a strong position to pursue additional bolt-on acquisitions and return cash to shareholders, all while it executes on shedding lower-margin segments. As such, during the quarter, the company completed the sale of its yeast extracts and marine lipid business and remains on track with plans to divest its Animal Nutrition & Health segment. We believe this should enhance overall profitability, as DSM’s global scale, close relationships with customers and ability to innovate allow the company to continue to gain global market share across the businesses it operates.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Rogue Funds on ElectroCore $ECOR US</strong></h3><p><strong>Thesis:<br /></strong>ElectroCore is a high-growth, high-margin company expected to achieve profitability in the next six months, with significant long-term potential despite short-term challenges from warrant dilution and scaling issues.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1hQSYBRrKbOnvY4Nrwy44aX4j7yGZpZvr/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>I am still very excited about this high growth and high margin business. They hit profitability within the next 6 months while growing revenue at a ~50% consistent CAGR and new devices beginning to scale. Their recent acquisition of NURO (if it gets approved) could be extremely accretive to the company. I have released a few pieces on our blog regarding the company (three now I believe). We trimmed slightly from when we took the position, but it is still a 10%+ position (due to its strong outperformance). The main reason for the trim is that the long-term prospects are extremely strong for the company, but the stock price will be fighting against some fairly strong warrant dilution in the short to midterm which could impact upward momentum on the price over the coming year or so. There could also be some delays in scaling into new networks, scaling their new acquisition, and scaling their new indications. I believe 2025 will be a slightly down year for them, but I believe they will have a ton of momentum going into 2026.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Focus Growth on Eli Lilly $LLY US</strong></h3><p><strong>Thesis:<br /></strong>Eli Lilly is a leading pharmaceutical company with a strong pipeline in diabetes, oncology, and immunology, poised for growth through innovative treatments and a premium valuation supported by its successful drug portfolio.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1u5k20UG0SCJ7Dh4uivIsYhQEUNbdUR06/view?usp=drive_link</p><p><strong>Analysis:<br /></strong>Eli Lilly is a leading pharmaceutical company that develops diabetes, oncology, immunology and neuroscience medicines. The company generates over half of its revenue in the U.S. from its leading drugs Trulicity, Verzenio and Taltz. The company operates in a single business segment: human pharmaceutical products.<br /><br />Eli Lilly has a deep pipeline in treatment areas focused on metabolic disorders, oncology, immunology and central nervous system disorders. Currently, there are two phase-three assets: orforglipron, an oral GLP-1, and retatrutide, a triple incretin agonist, which could possibly expand upon the potential success of Mounjaro. We believe that Mounjaro has the potential to commercialize beyond Type 2 diabetes and obesity, potentially in the areas of heart disease, sleep apnea, fatty liver disease and chronic kidney disease. We believe the premium valuation is supported by this outsized growth profile.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Protean Funds on Essity $ESSITY SS</strong></h3><p><strong>Thesis:<br /></strong>Essity is a stronger company than the market recognizes, strategically exiting volatile sectors and focusing on high-margin products, with limited downside potential and an upcoming change in leadership.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1DC_YySylzSlBfOwDjJR9ppSaOpR51pgg/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Essity is the only position in the fund with above 4% weight. We added materially to the position as the stock dropped on the Q4 numbers. The significant strengthening of the USD in December caused some volatility in earnings, flipping the switch on the markets’ muscle memory to turn back the clock to when Essity was an inherently more volatile business thanks to its significant pulp exposure. We think it’s wrong. In a nutshell Essity today is a better company than the market gives it credit for. Zooming out they appear to be doing the right things: exiting volatile and price-taking businesses, and growing in high-margin defendable ones. One shouldn’t fool oneself, however, it’s a relatively boring space, with femcare, baby diapers, incontinence products, and a still material exposure to the unattractive consumer tissue segment. But is it valued as such. It is also deleveraging, despite the increased shareholder remuneration. The improving returns on capital employed, a more shareholder-friendly approach, and a new CEO soon to be announced, means there is every opportunity for things to heat up. The key point, however, is that the downside should be limited from here. And as it is a large and liquid stock, we feel relatively comfortable with an above average position.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Core Equity on GE Aerospace $GE US</strong></h3><p><strong>Thesis:<br /></strong>GE Aerospace is poised for strong growth in its commercial engine business, aiming for $10 billion in annual operating profit by 2028 and significant returns to shareholders.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1Ya7--6TH_KnuLQ1qoW_vyN7omeAyZInh/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>GE Aerospace designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The industry has high entry barriers and is concentrated among few players. Despite its cyclical nature, the demand for travel is driven by global middle-class growth. Boeing and Airbus have long order books, ensuring steady demand for engines and spare parts. The company also benefits from high-margin services for existing aircraft fleets, with services accounting for 70% of its commercial engine business. GE Aerospace serves customers worldwide. We see GE Aerospace making significant strides in its commercial engine business, which is expected to boost future services revenue growth. Over the past five years, the company has undergone substantial restructuring and simplification, including divesting its healthcare and energy businesses. The company now operates in three segments: Commercial Engines & Services (CES), Defense & Propulsion Technologies (DPT) and Insurance. Long-term revenue guidance is for high single-digit growth, and management has a goal of $10 billion in annual operating profit by 2028, with an expected 20% annual earnings growth. Following years of restructuring, we see GE Aerospace now positioned to return capital to shareholders through dividends and share repurchases.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Small Mid Cap Equity on Healthpeak Properties $DOC US</strong></h3><p><strong>Thesis:<br /></strong>Healthpeak Properties (DOC) is a healthcare-focused REIT positioned to benefit from improved lease rates and financial performance due to industry supply/demand dynamics and a stable portfolio in senior housing and medical office buildings.</p><p><strong>Source</strong>: <a href="https://drive.google.com/file/d/15KgoNnlMavPoaNxb5BTw0hzPUSIEgN9N/view?usp=drivesdk">Link</a></p><p><strong>Analysis:<br /></strong>Healthpeak Properties (DOC) is a healthcare-focused real estate investment trust (REIT) that develops, owns and manages medical office buildings, senior housing assets and life science facilities. Following an industry-wide life sciences building boom that created a supply/demand imbalance, DOC is poised to benefit from improved lease rates with its properties as excess industry capacity is absorbed. A solid fundamental backdrop for the demographically driven senior housing portfolio and stability within its medical office building portfolio should allow the company to produce improved financial performance over the next several years.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Small Cap Equity on Hexcel $HXL US</strong></h3><p><strong>Thesis:<br /></strong>Hexcel is positioned for improved financial performance due to company-specific initiatives and a recovering outlook for commercial aircraft build rates.</p><p><strong>Source</strong>: https://drive.google.com/file/d/15KgoNnlMavPoaNxb5BTw0hzPUSIEgN9N/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Hexcel develops and manufactures structural materials for use in commercial aerospace, space and defense, and industrial applications. As a leading supplier of carbon fiber, honeycomb and other composite materials for the aerospace industry, the company’s financial performance has been negatively impacted by Covid-era disruptions and Boeing’s company-specific manufacturing problems. We believe the combination of company-specific self-help initiatives and an improving outlook for commercial aircraft build rates bodes well for improved financial performance from HXL.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Heartland Opportunistic Value Equity on Hexcel Corporation (HXL) $HXL US</strong></h3><p><strong>Thesis:<br /></strong>Hexcel Corporation (HXL) is a promising investment opportunity due to its potential for growth in the recovering commercial aerospace market and attractive valuation relative to cash flow.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1-4VhvtRODoiSG-dioiuDXqBoT_tOZNJX/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Industrials. Hexcel Corporation (HXL) is a new position added during the fourth quarter, and it exemplifies our willingness to be patient. We’ve long admired HXL and analyzed the company several times following a business recession induced by the COVID-19 pandemic; however, we believed the stock was ahead of fundamentals until now. The company manufactures carbon fiber reinforcements, resins, and other composite materials for the commercial aerospace and defense industries. Only 6% of the installed global commercial aircraft fleet is ‘composite intensive,’ referring to planes that utilize a significant amount of lighter-weight carbon fiber materials for greater fuel efficiency. Examples of the planes that fall into this category are wide-body aircrafts such as the Airbus A350 or Boeing 787, which help airlines lower their unit costs owing to better weight-versus-strength characteristics relative to metal-based substitutes. This commercial segment has yet to recover from the global pandemic. In 2019, widebody deliveries reached 400 units. In 2023, deliveries barely exceeded half that and 2024 production was constrained by supply chain bottlenecks, indicating there is still room for HXL to rebound. Management is guiding to a 14% compound annual sales growth rate for the company’s commercial aerospace segment over the next three years, driven by an expected recovery in wide-body deliveries. That growth should be supplemented by greater composite penetration in the broader commercial aircraft market as well as a push into new defense production, where Hexcel’s composites are critical for stealth platforms. Yet the shares remain attractively priced relative to cash flow, trading below prior aerospace M&A multiples. Management seems to agree, as there has been a healthy dose of insider buying activity lately.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Patient Capital Management on IAC Inc. $IAC US</strong></h3><p><strong>Thesis:<br /></strong>IAC Inc. is poised for value creation through strategic asset spin-offs and an attractive valuation that highlights untapped potential in its private holdings.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1sO9Vmq0oquxlJ4epdg52a2I-8mjwgg2-/view?usp=drive_link</p><p><strong>Analysis:<br /></strong>IAC Inc. (IAC) declined in the fourth quarter following the announcement that the company is considering spinning out its remaining ownership of Angi Inc. (ANGI) to shareholders. The company is focused on slimming down IAC and building cash in order to take advantage of attractive M&A opportunities. This is a strategy the company has employed for years and one which has created a lot of shareholder value. The company trades at an extremely attractive valuation as the company’s publicly traded ownership stakes in Angi Inc. (ANGI) and MGM Resorts International (MGM) and its corporate cash balance alone account for 107% of the current market cap. This means there is no value currently being attributed to their private holdings Meredith, Vivian Health, Care.com, and Turo. Many of the private assets are household names. While conglomerates do not always receive the valuation credit they deserve, IAC has a history of spinning-out assets and capturing value for their shareholders. We have no doubt that will continue to be the case.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aristotle Small Mid Cap Equity on Insights Enterprises $NSIT US</strong></h3><p><strong>Thesis:<br /></strong>Insights Enterprises (NSIT) is a global technology solutions integrator poised for growth due to rising demand for complex IT solutions, cloud transition, and AI adoption, alongside improving financial performance from strategic investments and acquisitions.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1SjKCN5zeU26yLkbmt8eywdpnwBI6_Pkl/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Insights Enterprises (NSIT), is a global technology “solutions integrator” specializing in designing, building and managing complex IT solutions for businesses of various size and scale. Areas of expertise include data center, cloud, security, and AI. Over the next several years, NSIT is poised to benefit from increased demand from an increasing complex technology landscape, the continued transition of enterprise business to the cloud and the emergence of AI as a must have IT tool. They are also expected to realize improved financial performance over the next several years as the benefits of strategic investments that have expanded the company’s portfolio of IT solutions are realized as well as from the integration/cross-selling of acquisitions completed over the past couple of years.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Focus CM on Kingsgate Consolidated Limited $KCN AU</strong></h3><p><strong>Thesis:<br /></strong>Kingsgate is an undervalued Australian gold mining company poised to generate significant cash flow from its recently reopened Chatree mine in Thailand, forecasting robust production and profitability in the coming years.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1b4PdSbmYb4wTInsWfBhSJYQl4kqO8_s-/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Kingsgate (KCN:AX) is an Australian gold mining company with one major asset, the Chatree gold mine in Thailand. Although closed for a number of years due to governmental action, Chatree has already restarted operations and is at the cusp of generating substantial cash flow. Nevertheless, Kingsgate continues to trade at a significant discount to its underlying value. Kingsgate trades in Australia in AUD (Australian dollars), but its business is mostly sensitive to USD (US Dollars). All numbers herein are in USD.</p><p>Refurbishment and Commissioning Complete<strong><br /></strong>After many long years, Chatree is finally fully back in operations, with both plants up and running and collectively processing ore at above nameplate capacity. Now it is all a matter of execution, as the company ramps up waste stripping and ore mining and transitions from processing low-grade stockpile material to full-fledged ore. For fiscal year 2025, which ends in June, Kingsgate is expecting to produce 80,000–90,000 ounces of gold, increasing to 95,000–120,000 ounces in fiscal 2026 and beyond. As the rate of production increases, the cost per ounce is expected to drop, making the mine more profitable over time. At the same time, gold is close to $2,800 an ounce, about 35% higher than the beginning of 2024, although you would not be able to tell this from looking at the stock price.</p><p>Outlook<strong><br /></strong>After many delays, and admittedly taking longer than we originally estimated, Kingsgate is on the cusp of reaching full capacity using normalized grade ore (as opposed to low-grade stockpile). We will then be producing an annual rate of 95,000–120,000 ounces of gold, with topline revenues of $250–$325 million a year. After subtracting operating costs, royalties (assuming no change in royalty structure), interest, and non-cash depletion charges, we are left with an estimated net income of $75–$110 million, and cash flow of $95–$130 million. Even with absurdly conservative estimates, they should be making at least $50 million net income when operating at full capacity and normalized grade ore, and much more than that in cash flow. With a present market cap of just above $200 million, the company remains absurdly undervalued, as the market remains in show-me mode. We are thrilled to own Kingsgate at these levels and judge the decline in its stock price over 2024 to be wholly unwarranted. We expect to see great things from our Kingsgate investment.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aoris on L’Oréal $OR FP</strong></h3><p><strong>Thesis:<br /></strong>L’Oréal is poised for long-term growth with strong earnings and market share gains globally, despite recent softness in China.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1JAYOxkvIVbXtAGYuTL7f6eUaBuo0s_Gy/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Our confidence in the long-term upwards trajectory of earnings and intrinsic value for L’Oréal remains high. We believe the softness in China this year overshadowed L’Oréal’s strong growth and broad-based market share gains across the rest of the world. Over the last few years, the company has reinvigorated its business in Western Europe and achieved very strong revenue growth there, continued to take market share across all beauty categories in the US, and built strong foundations for the long-term in India, the Middle East and Latin America.</p><p>As L’Oréal’s valuation became increasingly attractive in the second half of the year, we added to our portfolio position.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Ace River Capital on RCI Hospitality $RICK US</strong></h3><p><strong>Thesis:<br /></strong>RCI Hospitality’s strong acquisition pipeline and innovative tech platform offer unique growth opportunities in the adult entertainment industry.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1zhfMN_ISzLClYLL9ugHzgnmamtjNlNsY/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>The fund’s top position is RCI Hospitality (RICK). RICK is the only publicly traded owner of adult nightclubs in the US. Currently they own 57 clubs across 13 states and an additional 14 sports-bar restaurants with the “Bombshells” concept. With few municipalities issuing new adult entertainment licenses, these businesses function as local monopolies with excellent unit economics. There are roughly 2200 clubs across the country and RICK estimates that 500 of which would meet their criteria for acquisition. These clubs have limited potential buyers with RICK establishing themselves as the buyer of choice for any club owners looking to sell. This provides a long runway for growth. RCI Hospitality recently announced a successful Beta rollout of Onlyfans-like site “FavoriteItly.com” (formally named AdmireMe). This site enables entertainers to directly message their fans, sell them photos and videos, and unique to this platform – arrange to meet them in the safety of licensed clubs. “The mobile friendly site is free to sign-up. Users have to be at least 18 years old. They can then follow and subscribe to as many entertainers as they like. Entertainers charge what they want. Monthly subscriptions are currently running about $4-5. All major credit cards are accepted. The platform is also free to all professional entertainers in the adult club industry. Entertainers keep 80% of their sales and receive bonuses for signing up new entertainers.” — 1/16/25 Company press release. The FavoriteItly.com asset may prove to be extremely profitable if the company can attract enough users and entertainers for it to be an actual competitor to Onlyfans. I believe this asset has the potential to grow bigger than the existing company if managed effectively. There is also the possibility that the company valuation changes if this tech asset becomes a bigger portion of the market cap in the future. This could lead to multiple expansion in the years ahead. The core nightclub business has returned to positive same-store sales growth in the recent two quarters. The company is sitting on over $30MM in cash and is in talks to make multiple acquisitions. With the post-pandemic inflated numbers behind us, I am confident club owners’ expectations for sale prices will better reflect the prices RCI Hospitality will be willing to pay. The company estimates that there are 440 more interested clubs across the country.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Deep Sail Capital on Shelly Group $SLYG BU</strong></h3><p><strong>Thesis:<br /></strong>Shelly Group is strengthening its position in the smart home market through innovative software integration, strategic expansion, and a commitment to sustainability, all while achieving significant revenue growth and a favorable valuation.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1akTI0h_FBlhNzAzLXKfld-arPE0YgREE/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>We initially wrote up Shelly Group in our 2024 1Q investor letter. Since our initial investment pitch in early 2024, we have only gained more confidence in the business, the leadership, and the strategy. Alone with our growing confidence in the business, the company has hit major milestones including, uplisting to Frankfurt XTRA exchange (April 2024), held their first Capital Markets Day (November 2024), converted the company’s legal structure to a European Company or “SE” (December 2024) and continued to grow the business at +40%. Many of these actions make the company more attractive to western investors due to the increase regulatory and legal support. The current valuation is also 25% below (16x NTM EBITDA vs 21x NTM EBITDA) what the valuation was at the time of our previous writeup. Along side continued revenue growth in the 40-50% yoy for the last three quarters, the company has rolled out several new products, and laid out a strategic plan to drive their business over the next 5 to 10 years. Shelly held a Capital Markets day on November 5th in which they shared an in-depth strategic vision of their home automation devices and software business.</p><p><strong>Updated Vision and Strategy<br /></strong>Shelly Group’s new business strategy represents a calculated push to solidify its position as a leader in the smart home market while expanding into adjacent opportunities like home security and commercial / industrial monitoring. Shelly is expanding their business from being solely a device manufacturer to becoming an integrated smart home platform with software revenue streams. This evolution is backed by years of strong technological innovation, robust customer engagement, and strategic market expansion efforts to expand outside of their core markets in Europe. The group’s commitment to addressing consumer needs with scalable, efficient, and eco-friendly solutions aligns perfectly with broader trends favoring sustainability and automation. At the core of Shelly’s strategy is the development of their software offerings that pair well with their devices and add value to the ecosystem. This integrated ecosystem accessible via app or in home is designed to provide seamless management of smart home functionalities, including energy optimization, predictive maintenance, and advanced security. The company is leveraging its proprietary data lake and cloud solutions to create a foundation for recurring revenues through high margin subscription-based services. With a focus on community-driven innovation (Shelly has a loyal base of automation enthusiasts), Shelly’s products are shaped by user feedback, enhancing customer loyalty and accelerating market adoption.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aoris on Sherwin-Williams $SHW US</strong></h3><p><strong>Thesis:<br /></strong>Sherwin-Williams is the world's largest paint and coatings company with a dominant market share in the US professional painters segment and exclusive supply agreements with major home builders.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1JAYOxkvIVbXtAGYuTL7f6eUaBuo0s_Gy/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Lastly, we bought Sherwin-Williams, which is the world’s largest paint and coatings company. Yes, paint does sound dull, but Sherwin-Williams excels at serving demanding customers with often highly technical products. In the US market for professional painters, Sherwin-Williams has a share around 10x the size of its closest peer. It also has exclusive supply arrangements with 23 of the 25 largest home builders in the US. Remarkably, given its dominant position, its market share continues to rise.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Rowan Street on Shopify $SHOP US</strong></h3><p><strong>Thesis:<br /></strong>Shopify is expected to achieve revenue and gross profit growth exceeding 20% annually over the next two years, with strong operational cash flow, offering the potential for respectable double-digit annual returns despite high valuation multiples.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1DyvsH1yFf768oLgFqqIX59xVW3v8LYsU/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Looking ahead, Shopify is expected to grow its revenues and gross profits at rates north of 20% annually over the next two years, with cash flow from operations projected to grow in the high 20s as the company continues to convert more of its revenues into cash. While Shopify’s valuation multiples remain lofty—as they almost always do—this reflects Mr. Market’s recognition of the massive opportunity the company has in the e-commerce space. Even if market enthusiasm for Shopify’s long-term growth moderates in the coming years, which we expect it likely will, we still anticipate generating respectable double-digit annual returns from this investment.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Focus CM on Silicon Motion $SIMO US</strong></h3><p><strong>Thesis:<br /></strong>Silicon Motion is a promising investment opportunity with significant revenue growth and market share expansion anticipated in 2024, especially in high-end PC and AI/data center segments, despite a current stock loss.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1b4PdSbmYb4wTInsWfBhSJYQl4kqO8_s-/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Silicon Motion (SIMO) designs and sells controllers which manage the NAND flash memory ubiquitous in modern computing. Wherever there is NAND flash, there must be a controller, often one from Silicon Motion. SIMO is an ADR (American Depository Receipt) trading on the NASDAQ. In 2024, revenue has grown 25%+, gross margin has expanded 500 basis points, and net income has about doubled. The future looks even brighter, with continued growth in their core market segments as well as significant growth from their entry into new market segments. Silicon Motion’s entry into the high-end PC market with their PCIe 5.0 controllers is off to a very strong start with major design wins. They expect to attain about 50% market share in the high-end PC segment over the next few years. Their MonTitan enterprise controllers for AI and data centers have already garnered multiple Tier 1 customer wins, with more expected to come, in what is again a greenfield opportunity for the company.</p><p><strong>Conclusion:<br /></strong>We continue to believe that Silicon Motion is an amazing deal at these price levels, and we believe that as they continue to grow revenue, margins, and profits, the market will eventually cotton on, particularly as their growth continues to lay to rest the market’s fear of insourcing. The truth is that as smaller nodes (e.g., 6 nm) are more expensive to develop controllers on, it increasingly makes little economic sense for the NAND manufacturers to insource controllers given their limited volume over which to amortize their development costs. The stock price will have to come in line with the underlying business. As Benjamin Graham has famously said, in the short term the stock market is a voting machine, but in the long term it is a weighing machine.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Heartland Mid Cap Value Fund on Sysco $SYY US</strong></h3><p><strong>Thesis:<br /></strong>Sysco is leveraging a transformative self-help strategy with enhanced digital capabilities and specialty services to capture market share and drive growth in the fragmented food service distribution industry.</p><p><strong>Source</strong>: <a href="https://drive.google.com/file/d/1-x_7ipnIJZXBnNyCR9_vDXhs8eR1IusX/view?usp=drivesdk">https://drive.google.com/file/d/1-x_7ipnIJZXBnNyCR9_vDXhs8eR1IusX/view?usp=drivesdk</a></p><p><strong>Analysis:<br /></strong>While we purchased shares of the nation’s largest food service distributor in the fourth quarter, we’ve been watching the company’s self-help strategy unfold for years. Recovering from an awful COVID-19-era operating environment, Sysco has been responding with sweeping improvements in its digital capabilities along with changes to sales management and cost containment. Recently, the company — which delivers ingredients and food products to restaurants while avoiding slower-growing grocery stores — has been making a push to grow its specialty platform, offering services such as pre-cut meat, pre-cut produce, and dry aged beef to help customers streamline their operations. When the company’s restaurant, hotel, and food service clients utilize Sysco’s specialty services, they tend to spend three times more than traditional broadline customers.<br />Management noted that while foot traffic at restaurants was down 3.5% for the industry in the first quarter, Sysco’s sales grew 2.7%, a sign the company’s efforts are working. If that’s the case, the potential opportunity set is sizable. While Sysco is the largest player in this fragmented industry, its market share is only 17%, providing ample room for SYY to keep winning new customers as their clients bounce back and share migrates to the largest players.<br />Sysco has the largest transactions database in the industry and is now using AI in data analytics to provide unique promotional offers. The company’s sales representatives, for instance, receive real-time alerts and data-driven insights on key factors, such as items that specific customers haven’t been buying lately, allowing SYY reps to present customers with unique offers.<br />Sysco also has a robust capital return program including dividend increases and buybacks. This isn’t surprising given that SYY trades at historically cheap levels. The stock is at 80% of the Enterprise Value/EBITDA multiple of the S&P 1500 Consumer Staples sector.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Aoris on Visa $V US</strong></h3><p><strong>Thesis:<br /></strong>Visa is the world’s largest payment services company that enhances consumer and business payments with convenience, speed, and security, positioning it for continued growth in usage.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1JAYOxkvIVbXtAGYuTL7f6eUaBuo0s_Gy/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Visa is the world’s largest payment services company. We’ve been impressed by the way in which Visa has made consumer payments easier, faster and more secure over time, as many of us experience when we use a smartphone or watch to pay for our morning coffee or commute, or benefit from the rapid and frictionless process at the Amazon checkout. By making consumer and business payments easier, faster and more secure, we expect Visa will benefit from growing usage of its payments network for many years to come.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><h3><strong>Maran Capital on Vistry $VTY LN</strong></h3><p><strong>Thesis:<br /></strong>Vistry is undervalued despite recent challenges, with potential for significant upside if management can rebuild credibility.</p><p><strong>Source</strong>: https://drive.google.com/file/d/1ck_S4skyUsf0G4jod61zFUqVu8-SSMhm/view?usp=drivesdk</p><p><strong>Analysis:<br /></strong>Vistry is now trading well below tangible book value, and sentiment is rock-bottom—three profit warnings in three months saw to that. With our now relatively modest position size, I am continuing to evaluate the situation with a level head. While the recent quarter was more than rocky, the full, multi-decade body of work of Vistry’s management team still gives me confidence. For example, Vistry’s CEO has built meaningful value across a number of homebuilding businesses over his career. We don’t want to fall prey to recency bias or salience bias and thus don’t want to let one tough quarter become over-weighted in our analysis. It will take management and the board time to rebuild credibility, but if they can execute, there is meaningful upside in the shares.</p><p><strong><a href="https://finchat.io/?via=tom">Check here for the latest results, quarterly call and analysts' estimates.</a></strong></p><div><hr /></div><p></p><p><em>Everything you read here is for information purposes only and is not an investment recommendation.</em></p><div class="subscription-widget-wrap-editor"><div class="subscription-widget show-subscribe"><div class="preamble"><p class="cta-caption">Thanks for reading Stock Analysis Compilation! 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