In today’s briefing:
- Inox Wind Merger: Behind the Arbitrage
- LATAM Group – Strong Momentum and Strategic Opportunities
- Lyft Inc: Expanding Portfolio through Strategic Partnerships & 5 Major Growth Drivers! – Financial Forecasts
- 115: Mainfreight, Ltd.
Inox Wind Merger: Behind the Arbitrage
- INOX India Limited (INOX IN) ( or IWL) and Inox Wind Energy (IWEL IN) (or IWEL) have announced a merger, where IWEL will be amalgamated with IWL
- The share swap ratio in the scheme of amalgamation gives a very evident arbitrage opportunity.
- The arbitrage opportunity has become bigger than when announced in June 2023. While the strategy is still possible, we try to justify the market behaviour.
LATAM Group – Strong Momentum and Strategic Opportunities
- LATAM Group surprised the market with strong guidance for 2024 earnings growth following upgrades through 2023. We raise our 2024 EBITDAR 14% to $2.8bn.
- A successful restructuring under Chapter 11, and market leadership in key regions, is paying off for LATAM as demand remains robust.
- Such a strong recovery positions it to make further strategic gains, particularly with the risk that competitor GOL must shrink its fleet through its own CH11 processs.
Lyft Inc: Expanding Portfolio through Strategic Partnerships & 5 Major Growth Drivers! – Financial Forecasts
- Lyft’s positive financial performance and future expectations make it an attractive investment opportunity.
- Lyft’s 2023 performance was marked by significant growth in the company’s rideshare service, with gross bookings reaching an all-time high, ride growth accelerating each quarter and ending the year up 26% in Q4.
- This growth demonstrates the strong demand for Lyft’s service, which bodes well for its future performance.
115: Mainfreight, Ltd.
- Mainfreight came on my radar thanks to Jessie Rancourt, a friend and fellow value investor, who mentioned it during a subscriber meetup a few months ago.
- Mainfreight is in the supply chain logistics industry, an extremely broad category covering a huge segment of the world economy and harboring (pun intended) many niches and specialties.
- I decided a look at the company would fit in well with my coverage of Old Dominion Freight Line (ODFL | Disclosure: None) in the U.S. less-than-truckload space and Triumph Financial (TFIN | Disclosure: Long) in the banking-cum-truckload finance space.
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