Feathertop Capital

Not financial advice. Views are all my own. All my write-ups are free, delivered direct to your inbox. That should be a hint as to quality.

[Feathertop Capital @FeathertopCap]

@lonewolvesfrank @ToffCap1 @dede_eyesan @gw_investing @disc_long @AlaricsPicks @eIevatorpitches @OverlookedAlpha @JackDuffley @FirmReturns 🤙

[Feathertop Capital @FeathertopCap]

A quick look at Option #2: the translated reports are too hard to read, notwithstanding how good the screener suggests the business quality is. Also the governance/business structure looks confusing. Moving to option #3 next, $RGP.

[Feathertop Capital @FeathertopCap]

Which company:

[Feathertop Capital @FeathertopCap]

Ask and you shall receive. Writeup on $UG (United Guardian), which was Option 4 in the poll I just held. Read here: https://t.co/SxA2bBG1qk

[Feathertop Capital @FeathertopCap]

Which company:

[Feathertop Capital @FeathertopCap]

Do me a favour and help me decide which company to write-up next. Here is an anonymous summary of the options, 1-4. Poll is in the replies!

[Feathertop Capital @FeathertopCap]

My finest piece of work yet https://t.co/atC8dqtb69

[Feathertop Capital @FeathertopCap]

Short writeup: https://t.co/f6QHDGkHQg

Full write up: https://t.co/q581UGRvCP

[Aden @ajb_02]

$KEYS nibbled before, but properly buying in now, 20x PE and 14x EV/EBIT. 6.5% FCF yield. Is it rly cheap? No. Is it the best listed law firm & one of the premier prof services models? Yes. May it get cheaper? Idk. Either way its undervalued on my numbers now.

[Aden @ajb_02]

Q3 Nekkar results $NKR.OB $0TT.DB - my notes. You can watch recording/slides here: https://t.co/xn67Ill7dr

[Feathertop Capital @FeathertopCap]

New writeup: Dow Schofield Watts $DSW.

https://t.co/F1fy18gz3L

[Feathertop Capital @FeathertopCap]

[ $DSW.L ] Go read this write-up from Tristan - it is a name I hold. Interesting idea and very similar to another holding of mine; Keystone [ $KEYS.L ] - a licence model in the professional services space.

[Feathertop Capital @FeathertopCap]

A new write-up, but with a bit of a story behind it. https://t.co/7ge7vTJIBD

[Aden @ajb_02]

Anyone on Fintwit, particularly the Aussies, across $BVS Bravura Solutions? Screens well, looks cheap now (down -72% from ath) especially for a software company. Even has a div yield 👀 CEO switchup in place, ex-CTO coming in. Could be a change in capital allocation.

[Feathertop Capital @FeathertopCap]

Not a stock write up this time, but my summary notes from a McKinsey textbook on pricing: https://t.co/lxuNwpg5VZ

[Feathertop Capital @FeathertopCap]

@CloneShameless Rare that a low multiple is given to such a quantitatively strong company. Either I’ve missed something critical or the market is just being irrational. I suspect the complexity of the subsidiaries and it being a flush-with-cash Japanese small cap scares off most ppl

[Feathertop Capital @FeathertopCap]

New writeup is out, this time for $3679 (Zigen). https://t.co/bQNCVQCgIo (1/3)

[Feathertop Capital @FeathertopCap]

Sorry if it isn’t clear! Weeks of work have gone into the longer write up (link at both the top and the bottom of the substack piece). I try to give a summary for those that want to figure out if a 35 page write up is worth their time. In future I might just post the full thing..

[Feathertop Capital @FeathertopCap]

For accounts to follow on this name, I suggest @Tristanwaine and @VanVianney who jointly wrote up Zigen many months ago. I had seen the company on screens before, but their attention/writeup made me dig deeper. (3/3)

[Feathertop Capital @FeathertopCap]

As an aside - some bad news: I got COVID. The good news: being bedridden means I had plenty of time to finish a writeup for March. Excuse any typos or mistakes, COVID brain-fog is real. (2/3)

[Feathertop Capital @FeathertopCap]

Might send a translated email to the analyst asking about LTV/CAC ratio and also capital allocation. Would be interested in your thoughts @FinSkeptic especially since you can probably read the german report, available here: https://t.co/b9WdYz8xwP

[Feathertop Capital @FeathertopCap]

$TR9 gets analyst coverage as of yesterday. Buy rating with a target of EUR 24.00 (upside: 60%). Translated from German to English, a copy is available here: https://t.co/2ugOkmMzrs My key takeaways are below.

[Feathertop Capital @FeathertopCap]

Another writeup, just in time for December. This time I've chosen OTRS Group: $TR9 / TR9.DB. German ITSM software + service provider. ROIC 40%. 91% recurring revs. Founder (70%) led. 30m market cap. 11x EV/EBIT or 2x sales.
https://t.co/jOEgnsADVI

[Feathertop Capital @FeathertopCap]

One interesting catalyst mentioned that I hadn't considered is a buyout, which might make sense for a foray by a US business into Europe to just buy OTRS, which is very cheap. 70% of the company is held by two anchor shareholders. A deal could be easy.