In today’s briefing:
- Vulcan Value Partners Q4 And Annual 2021 Letter
- Last Week in Event SPACE: Singapore Press, Yashili, WH Group, Uniti Group, Toshiba, China Conch
- Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- GreenWood Investors Fourth Quarter 2021 Letter
- Demand recovery across segments to propel earnings
- Jubilant FoodWorks (Update): CEO quits adds risks on all fronts. Maintain REDUCE
Vulcan Value Partners Q4 And Annual 2021 Letter
- We are value investors – business analysts with a long-term time horizon focused on purchasing publicly traded companies that are competitively entrenched at significant discounts to intrinsic worth.
- After very strong absolute and relative returns through the first nine months of the year, all of our investment strategies lagged their benchmarks during the fourth quarter.
- All of our portfolios are fully invested in world class businesses with stable values trading at a significant discount to intrinsic worth.
Last Week in Event SPACE: Singapore Press, Yashili, WH Group, Uniti Group, Toshiba, China Conch
- Singapore Press Holdings (SPH SP)‘s comments and answers about the SPH REIT Chain Offer may be misleading.
- China Mengniu (2319 HK) is in discussions regarding its holdings in Yashili (1230 HK) which may result in a number of “Potential Transactions”, and may include a pre-conditional privatisation offer.
- WH Group (288 HK) is two businesses – a US pork processor and a Chinese one – and both businesses are suffering lower margins than they’d like.
Tencent’s BIG In-Specie Dividend of JD.com Shares – The Likely Flows & Timing
- Tencent (700 HK) will deliver shares of JD.com Inc. (9618 HK) this week in its in-specie distribution of 14.7% of the shares out of JD.com.
- Some people will NEED to hold. Some will NEED to sell. On a net basis, it is a short-term sell and a longer-term overhang.
- The timing and execution are going to be quite interesting. There will be short-term opportunity.
GreenWood Investors Fourth Quarter 2021 Letter
- GreenWood Investors is a mostly-long, deep value investment firm focused on areas of extreme pessimism, structural inefficiencies and low competition.
- Our fourth quarter performance reflected a worldwide capitulation away from nearly everything except the large tech companies.
- We want to be optimized for both the short, medium and long-term, and seek rare investments that look attractive from all perspectives.
- We’ve given significant consideration to owning the big tech monopolies since 2012.
- We’ve been finding highly compelling short opportunities in addition to maintaining a high sense of urgency in sifting through the wreckage brought on by the most recent market turmoil.
Demand recovery across segments to propel earnings
- Demand recovery across segments to propel earnings Godrej Agrovet (GOAGRO) is likely to witness better demand across its segments of Palm Oil, Animal Feed (AF) and Crop Protection (CP).
- Conversely, the palm oil business is likely to be a beneficiary of rising prices.
- The palm oil prices rallied 42% YoY to USD1,383/t as of Jan’22..
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Jubilant FoodWorks (Update): CEO quits adds risks on all fronts. Maintain REDUCE
- We have seen CEO changes for various other consumer companies in the past, and most changes have been value accretive.
- However, we remain cautious until the new CEO showcases his execution capability.
- His exit (along with past exits of many members of senior management) is certainly adding several risks.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Before it’s here, it’s on Smartkarma
