Gustaf

Just published an interview with Next Generation Technology Group (NGTG) on their upcoming IPO. I believe many of you will like this one! "we can secure cost-effective, high-leverage debt packages for our acquisitions, sometimes reducing our equity portion to near zero!‍"

Link to a newsletter excerpt on turning conglomerate discounts into premiums and Roper’s $ROP budget philosophy: acquirers.com/post/conglomer… And a Constellation Software anecdote - enjoy! $CSU.TO $CSU.TO $CNSWF

I think @rditrych! He gave me a quick almost 2x in the name a year ago ^^ Luck only ever trumped by shamelessly stealing conviction from Topline Capital (who was also invested in Dropsuite & Energy One) into NeuroMetrix 😬

Interestingly, Adapt IT was acquired (64% ownership at delisting) by the $CSU subsidiary Volaris this year. Pinetree's Adapt IT investment was a "loss" as of Dec 31st. But maybe Leonard Jr is now a co-owner of the private entity together with Leonard Sr?👀adaptit.com/press-releases?h…

Added more to TBC Bank $TBCG. Real ROE around 20%; P/B (for the Bank / fin services) = 1.0x. Then you get Ecosystems on top for "free". Growth, asset-light w high margins - would at a 10x P/E comprise almost 20% of mcap (IS figures in pic refer to 1H21). teapawt.net/SectorInsights/status/…

Presented w/o comment ^^

Happy to hear Tom! I've an occasional kink for low growth/high ROE though 1x P/B (for banks) is similar to a par bond, with ROE as "equity coupon" If divvies from a 0% real growth bank (assuming ROE doesn’t deteriorate w/o growth) are reinvested (reinvestment risk), CAGR = ROE

Too early to tell for an outsider but sure doesn’t look like a catastrophe.. :)

I would rather have mgmt go for lower growth (Georgia alone) & higher ROE (higher payout ratio and let me reinvest divs below P/B 1x..). Rationale for expansion included employee career progression, but guess it's at least a good sandbox for digital spend

Also added TBC Bank $TBCG to the bank basket. Duopoly -> "real" ROE steady around 15%; <1x P/B (book likely inflated though); 4.5x P/E NTM Additional risk: country demographics, but GDP fine mid term "Growth tied to population increases is considerably more certain.." - Klarman