I have removed the paywall from my write-up of Frontera Energy $FEC.TO from January this year. Shares are up over 100% since then, and still cheap. Read it for free now, here: https://t.co/KpJDjlAatP
A business with multiple segments that have vastly different margin profils + an ongoing strategic review, an upcoming spin-off or a potential divesture is a pretty good investment framework.
Bonus points if one segment got industry tailwinds and an investor got a board seat.
The caveat/risk as of right now: Cinemark accounts for half of their screen count and most likely almost all of their growth in the last two quarters. So customer concentration risk applies here. That‘s also why securing another deal with a big chain would be huge for them.
A lot has been said here about $DBO.TO‘s Quarter.
My favorite number from the Q is $7.7M in theatre system sales vs. $10M for entire 2025.
It has been an outstanding year and it great to see a Microcaps execute with cost discipline and a pristine balance sheet.
Shares are trading now at 12.5x EV/EBITDA on FY26 numbers. Big question is if they are able to take advantage of the fact that they are in only 2% of all screens in North America. If they can (which would mean securing a deal with AMC or Regal) than the runway here is exceptional.
Everyone is talking about oil.
Nobody is looking at Colombia.
2.6-3.2x EBITDA. Below $32k per flowing barrel.
A presidential election in May that could reprice the entire sector.
PS: If you're wondering why the thumbnail is a layered cake, read the article.
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Someone pitched me a french stock (which was a good pitch). Anyway, I took it as sign to look into french stocks… some interesting names that are adjacent to secular tailwinds (AI, electrification). It’s tough to buy the obvious one cause it’s partly a fomo trade then.
I started investing in 2021, and since then, value investors have been losing their minds every year about how expensive the market is. Yet, with the exception of 2022, it has gone higher each year.
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The paradox of idea generation is that I have found my best ideas when I was not actively looking for them. Yet, I would not have found them if I hadn't spent hours looking actively for ideas.
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