Monday Morning Links Week 4
Monday Morning Links Week 4
Global stock-related links
I really enjoyed Dungeon Investing recent post on Sega Sammy. This firm is the result of a merger between SEGA, the classic video gaming company, and Sammy, a gambling and resorts company. Dungeon argues that Sega Sammy is slowly winding down its cash cow Pachinko business and that it will reinvest the proceeds into the more promising video game operations. Dungeon believes SEGA’s video game IP is underutilized and points to efforts now under way to monetize the Sonic franchise through new games, movies, and a TV show. Shares currently trade for 7.9 times trailing earnings.
Boaz Weinstein, founder of Saba Capital Management, offered a great interview on The Money Mondays. His activism in close-end funds is fascinating — his $5 billion fund regularly fights with CEF managers such as Blackrock (AUM of $9 trillion) and wins a surprising amount of the time. I also enjoyed Weinstein’s poker stories and approach to charitable giving.
And in the wake of several recent high-profile M&A deal failures, Nelson Smith from Canadian Dividend Investing gives his thorough guide to investing in odd lot tenders, M&A arbitrage, and other special situations. His tips for finding odd lot tender opportunities and rules for special situation investing are particularly useful. According to Smith: “They say arbitrage is picking up nickels in front of a steamroller; if you’re selective enough you can minimize the risk to picking up quarters in front of golf carts.”
Americas:
No Deep Dives on Bel Fuse (🇺🇸 BELF.A & BELF.B US - US$830 million)
Mokapu Capital on Carriage Services (🇺🇸 CSV US - US$351 million)
Daikoku Investing on Medical Facilities Corp. Daikoku offers a detailed 24-page write-up on this under-the-radar hospital operator. (🇨🇦 DR CN - US$166 million)
Special Situation Investing on Fortitude Gold (🇺🇸 FTCO US - US$147 million)
Hourglass Investing on M-Tron Industries (🇺🇸 MPTI US - US$115 million)
Europe, Middle East & Africa:
Librarian Capital on Unilever (🇬🇧 ULVR UK - US$118 billion)
Asia-Pacific:
Elliot’s Musings on Coupang (🇰🇷 CPNG US - US$27 billion)
Dungeon Investing on Sega Sammy (🇯🇵 6460 JP - US$3.1 billion)
Amit Wadhwaney of Moerus Capital Management on Cromwell Property Group (🇦🇺 CMW AU - US$656 million)
Asian Century Stocks on Imax China (🇨🇳 1970 HK - US$317 million) ($)
(estimated reading time)
Canadian Dividend Investing’s rules for merger arbitrage, odd lot tenders, and other special situations. (19 mins)
Kevin Xu details concerns about the CHIPs Act and America’s efforts to support its domestic semiconductor industry. (5 mins)
Speedwell Snippets with 10 business lessons from Copart’s 40 years of success. (13 mins)
Warden Capital year-end letter focusing on the REIT market with detailed discussion on various categories of commercial real estate. (20 mins)
The International Investor on investing in Asian data centers. (3 mins)
Investment Talk on traits that are red flags in investors. (7 mins)
Wall St Gunslinger on why he’s buying a basket of American multi-family apartment REITs. (11 mins)
Apricitas Economics on America’s recent boom in new business formation and entrepreneurship. (14 mins)
Citywire offers four LatAm banking picks to cash in on the region’s growth. (6 mins)
Nitin Bajaj of Fidelity Asian Values with his 2024 Asian investment outlook. (4 mins)
Tyler Cowen on why he thinks Javier Milei’s economic revolution in Argentina only has a 30-40% chance of success. (2 mins)
Buyback Capital on the power of focus. (5 mins)
(listening time)
Boaz Weinstein on closed-end funds, shareholder activism, charitable giving and more. (48 mins)
DoubleLine’s 2024 best ideas roundtable featuring Jeffrey Gundlach, James Bianco and others. (13 mins)
Jeffrey Towson on BYD’s strategy for building a leading Chinese vehicle and battery company and making the leap to becoming a global brand. (38 mins)
Substack author Systemic Investing on global quantitative microcap investing (59 mins)
Kathy Jones & Liz Ann Sonders on the Fed’s plans for 2024, inflation, and risk management (26 mins)
A Mars Wrigley Asia executive on growth in the confectionary industry, the firm’s expansion into snack foods, and modernizing its supply chain. (21 mins)
Ian Bezek on his 2024 outlook for the major Latin American economies and stock markets. (1:05 hours)
