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.
$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.
[ $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.
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.
@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
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..
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)
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)
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
$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.
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
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.