Fundamental Analyses, Contrarian Cashflows

Contrarian Cashflows

My approach is to cover companies that fit my investment criteria and trade at prices with near term free cashflow yields that provide above-average returns. Usually my hurdle yield is 10%. This way I do not need the market to converge to my assessment of value to earn acceptable returns. You can find my investment criteria on my website.

Since good companies rarely come cheap, I predominantly look off the beaten paths at smaller companies in sectors or regions that face short-term headwinds and are therefore neglected by most investors.
Most of the times, I use a Discounted Cashflow Model (DCF) to value businesses. However, to limit the possibilities to mess with the model, I developed a variation of the DCF that uses less parameters at the cost of being less precise. I think the tradeoff is very worthwhile as I really take the words of a Sir Maynard Keynes to heart: It is better to be roughly right than precisely wrong.

Lastly, to protect me from my own ignorance and stupidity, I always insist on a margin of safety.

Fundamental Analyses

The purpose of Contrarian Cashflows is to document my investment research and share it with everyone who is interested in value investing. My long term aspiration for Contrarian Cashflows is to become a platform for professional investors and serious amateurs where they can get inspiration and discuss investing-related topics.
I plan to publish one company deep dive per month that is guided by my investment approach. All information I use for my write-ups is publicly available and most of the time directly sourced from public filings issued by the respective companies. To guarantee maximum transparency, for every post I provide a list of all used sources in the resources section.
Contrarian Cashflows is built around the principles of respect, honesty, open-mindedness and a touch of humour. Please consider these principles in any engagement interaction with me, other readers and the content on this blog. Misbehaviour is not tolerated.
If you want to reach out to me directly, the best way is via LinkedIn, Twitter or email. You can find the details at my homepage contrariancashflows.com

Equity Bottom-Up

<ul>
<li>Today, Let’s get straight to the point. While I typically share insights about the broader investment landscape, today I need to address some unsettling news about one of our portfolio holdings: Solid State plc (SOLI).</li>
<li>On Friday, November 15th, the stock experienced a dramatic drop of nearly 50%, plunging from GBp 207.55 to GBp 110.00.</li>
<li>Although it managed to recover some of the losses, it still ended the session with a sharp 35% decline at GBp 135.06.</li>
</ul>


Today, Let’s get straight to the point. While I typically share insights about the broader investment landscape, today I need to address some unsettling news about one of our portfolio holdings: Solid State plc (SOLI).
On Friday, November 15th, the stock experienced a dramatic drop of nearly 50%, plunging from GBp 207.55 to GBp 110.00.
Although it managed to recover some of the losses, it still ended the session with a sharp 35% decline at GBp 135.06.


Solid State PLC

Portfolio Update: November 2024