Fall 2022

The investor believes that Planet Fitness has strong growth potential due to its unique business model and increasing demand for affordable fitness options. They see the company benefiting from a growing health and wellness trend among consumers.

CATL is positioned to lead the battery industry due to its product innovation, strong R&D capabilities, and management expertise. The stock is undervalued with a current P/E of 22x, which is near all-time lows, while expected EPS growth is projected at 40% CAGR over FY22-25, suggesting significant upside potential.

Planet Fitness is well-positioned for growth with a strong business model and competitive advantages, including a large footprint and attractive pricing. The stock is undervalued following a market overreaction to guidance, presenting a buying opportunity with a target price of $102, representing an IRR of 18%.

Collectors Universe is a good business that can generate attractive returns even without changes, but it has potential for extraordinary returns with improved capital allocation. The company has been criticized for its poor capital allocation policies, which have hindered its growth and shareholder value. Activism was pursued to encourage management to adopt better practices and unlock value for shareholders.

Enlabs AB was involved in a situation where the management accepted a takeover offer that was deemed inadequate. As a significant shareholder, the firm opposed the deal, believing it was not in the best interest of shareholders. Their activism led to a better outcome for all shareholders by blocking the lowball offer and demanding a fairer valuation.

The investment thesis was based on the expectation that Atlas Air would experience a significant increase in free cash flow as capital expenditures related to Amazon's fleet build-out would decline. The company was also benefiting from secular tailwinds in e-commerce and had a stable ACMI business model.

The investment in Bombardier was driven by the anticipation of a catalyst from the sale of its trains business to Alstom, which would reduce debt and pension obligations while providing a cash infusion. This strategic move was expected to transform Bombardier into a pure-play private aviation business, enhancing its value significantly.

The investment was based on the expectation that Avaya would successfully raise funds to pay off a convertible debt, which would stabilize its financial position. The company was in the process of raising $500 million to address its convertible debt due in 2023, which was seen as a positive development for its future.

The investment in ZIM was prompted by its IPO and the recognition that Danaos had a significant stake in the company, which indicated potential value. The stock was expected to rise significantly following the IPO, reflecting strong market interest and fundamentals.

Danaos was discovered as one of the cheapest stocks in the shipping sector, trading at 0.7x PE, which presented a significant opportunity given the historical context of the industry and the potential for recovery post-COVID-19.

BFF Bank is positioned to benefit from rising interest rates due to its factoring business and exposure to Italian sovereigns, making it a compelling investment opportunity in the current economic environment.

CATL is a leading manufacturer of lithium-ion batteries for electric vehicles and energy storage applications, with a significant market share and strong growth prospects driven by increasing global EV penetration. The company is expected to outperform revenue growth estimates and maintain industry-leading margins due to its competitive advantages and strategic investments in raw materials.

Planet Fitness is positioned for significant growth with a target of 3,000 stores by 2025, driven by its strong value proposition and resilience during economic downturns. The company has a unique opportunity to expand both nationally and internationally, and its unit economics are attractive even without leverage. The recommendation is to go long on PLNT with a 3-year target price of $102, reflecting an IRR of 18%.

IDT is a small cap conglomerate that has successfully used cash flows from its telecom business to incubate and spin off other businesses, leading to significant value creation. The company has compounded value per share in excess of 20% over the last decade, and its National Retail Solutions (NRS) business, which has high margins and rapid growth, is expected to be spun off, providing further upside for investors at current prices.

Ryan Pape, the CEO of XPEL, has demonstrated exceptional capital allocation skills and is fully invested in the business, which has resulted in significant value creation. The company treats its shares with great care, not issuing them unnecessarily, and has shown strong performance under Pape's leadership.

Berkshire Hathaway is undervalued relative to its intrinsic value and is conservatively run, making it a reliable investment. The earning power is predictable, and it behaves like a fixed income holding with a yield of 10-12% when bought intelligently.

Costco is a strong business that generates over 20% returns on new store openings, making it a brilliant use of capital. The stock is rarely cheap, but the company pays special dividends when cash builds up, providing additional returns to shareholders.

Olin has been a strong performer in the portfolio, and the ability to move capital around based on intrinsic value allows for maintaining a low overall portfolio valuation.

Transocean was identified as a high-quality asset during a downturn in oil prices, leading to significant returns when the market recovered. This demonstrates the importance of understanding the business and valuation.

Diamond Offshore was another high-quality asset identified during a downturn in the oil market, resulting in substantial returns when the market improved. This highlights the value of thorough research and understanding of the investment landscape.

The merger with CBS has the potential to significantly increase revenues and profitability, with a target of reaching $50 billion in market cap. The management team is strong, and the balance sheet is being repaired, which provides a margin of safety despite current market skepticism.

Disney is known for producing high-quality content and has a strong brand. The suggestion is to avoid overbuilding content and instead focus on maintaining the quality of their offerings, which could lead to better long-term profitability.

Despite the high amount spent on share repurchases, the stock is currently undervalued at $97 compared to previous repurchase prices. The company has a strong profit generation capability, which could lead to a recovery in stock price.