Pitch

Analysis

Baidu (buy at $135, 6Jan2017@$176): is growing at ~ 25% and had 2015 normalized earning of $2.2B. It has a 2 class share structure 27M in class A (1 vote) and 7M in class B (10 votes). Furthermore, the ADS trading on the NSQ represents 1/10 of a class A shares. TL:DR; at $163/ADS the company has a market cap of 340M*$163=$55B. This is ~ 25x earning. I would be comfortable paying 20x earning.

Chipotle (buy at $300, 6Jan2017@$398): is growing at ~ 20% and had earning of $15.3/share. The management owns ~ 3% of the shares outstanding. The share count has gone down 10% over the last 10 years. Comfortable paying 20x earnings.

Articles

Dec 23, 2013 Altius Minerals: An Excellent Business Trading at a Discount
Dec 17, 2013 Lamprell: A Great Business Reeling from Temporary Setbacks
Oct 29, 2013 Altius Minerals: Excellent Management for Free

Blog Posts

Oct 2015 Swatch Group (Buy around CHF 300).
Oct 2015 Tandy Leather (Too Hard Pile, Moat).
Oct 2015 Dolby Labs (Don’t buy. Too Hard Pile).
Oct 2015 America’s Car-Mart (Buy).
Sep 2015 Distribution Now (Rejected in favor of NOV).
Sep 2015 Hunter Douglas (Rejected. Management risk of taking the company private at opportunistic prices).
Sep 2015 Colfax (Rejected in favor of NOV).
Sep 2015 Mullen Group (Moat problems).
Sep 2015 Seaworld (Regulation. Management. Debt.)
Sep 2015 Chicago Bridge & Iron (Too Hard Pile).
Sep 2015 Rolls-Royce (Buy).

Advertisements