Special Situations

Special Situations, Deep Value, Activism, Asset Plays.

No Investment Advice. Do your own due dilligence.

[Special Situations @DeepValue_De]

@valuedontlie $NOMD is an orphaned stock, business is located in europe but is listed in the US. I think the step to ,,promote" the stock a bit more is a good move.

[Special Situations @DeepValue_De]

Yes, think the presentation was very good. Really liked the sentence from Mr. Franklin that it is an option that they will take the company private if the public markets doesn't give the company the right multiple. This is some type of downside protection if you are buying at the current prices.

[Special Situations @DeepValue_De]

Think $NOMD is really interesting! You are paying 7x earnings, get a 5.7% dividend yield and get a free call option.

Think the following quote out of the transcript from the last Investor Day in October is really interesting:

Sir Martin E. Franklin:
One final note. Before anyone asks in the Q&A about whether or not we have considered taking this company private, let me say that of course we know this is an option that exists if the credit markets are open. Our opinion is that we believe doing so would deny our shareholders the upside inherent in the Company’s outlook. If the Company performs as we expect, and the market continues to discount Nomad’s value, we always have this alternative to consider. But for us, it’s a last resort.
(Transcript p. 2)

Martin Franklin is the founder and Co-Chairman of the Board. He’s a billionaire and his whole life he did a whole lot of M&A deals, don’t think it would be that hard to take this company private for him.
Don’t think this stock is a home run, but with the “synthetic put option” from Martin Franklin with the potential take-private if prices stay depressed and the attractive dividend yield this stock is a great defensive position in my portfolio. Sold some covered calls to get some extra juice, it’s a great combination for this stock with the dividend + the options premium.

Disclaimer: Not financial advice. For informational purposes only. Do your own research. I am long $NOMD and short covered calls on $NOMD; positions may change at any time without notice.

[Special Situations @DeepValue_De]

@NoelWieder What is the name of the book?

[Special Situations @DeepValue_De]

@NoelWieder Danke für die Liste mit Empfehlungen!

[Special Situations @DeepValue_De]

@LovellPropguru @peterproperty What do you mean with covenants? I think they have 0 debt

[Special Situations @DeepValue_De]

@AnotherBio Why do you think investing in reverse mergers is a good investment opportunity? Is the risk reward in these situations great or has it a high probability of success? Do you just invested in healthcare / biotech reverse mergers or every sector?

[Special Situations @DeepValue_De]

@mr_deepvalue 10-20% after tax?

[Special Situations @DeepValue_De]

@leevalueroach How many positions are in your portfolio on average?

[Special Situations @DeepValue_De]

@Act2Capital Do you think 7-8$ is still below replacement costs? Or why do you think this price is attractive even with the current low capacity.

[Special Situations @DeepValue_De]

@SAlpha88888 What‘s your estimate on the value of the equipment + customer contracts?

[Special Situations @DeepValue_De]

@Mrcryptoxwhale @NoLimitGains @grok Done

[Special Situations @DeepValue_De]

@paulswaney3 🙋🏼‍♂️

[Special Situations @DeepValue_De]

@PantexCap Who are you following on Substack? Can you recommend some people there?

[Special Situations @DeepValue_De]

@jfsrevg Hi @jfsrevg ,

do you use progressive exposure principles or are all your positions sized equally?

[Special Situations @DeepValue_De]

@AsymTrading Thank you for sharing your thoughts!

[Special Situations @DeepValue_De]

@traderCharlieM @PradeepBonde @STOCKCHARTIN Which source do you use to check historical news Charlie ?

[Special Situations @DeepValue_De]

@AsymTrading Congratulations!!

[Special Situations @DeepValue_De]

@AsymTrading Hi @AsymTrading,

how many trades do you take per year on average?