Brookgate

“I never use valuation to time the market. I use liquidity considerations and technical analysis for timing. Valuation only tells me how far the market can go once a catalyst enters the picture to change the market direction.” — Stanley Druckenmiller

Looking at bioprocessing names and they all look very interesting with high quality businesses (70-80% recurring revenues, high gross margins, high ROIC), reasonable multiples ($DHR @ 17.7x EV/EBIT $TMO @ 18.6x) and coming out of a post-COVID industry-wide destocking One name I am not familiar with is Bio-Rad $BIO which owns a good chunk of Sartorius $SRT $SRT3 which is another high-quality bioprocessing name and which is the leader in single-use bioreactors which the industry is moving to. $BIO own their own bioprocessing business as well but not too sure on the economics. Has only compounded EBIT at 4% for decades so probably less attractive (either structurally slower growing or was worse hit by destocking which would suggest lower consumables mix, need to check) $SRT has always had a premium multiple and trades at 24.5x EV/EBIT today But if you back that stake in $SRT out, $BIO is trading at just 9x TRAILING EV/EBIT:

@BeardedMou53355 @Wexboy_Value @herosnvrdie69 What do you define as the typical income, if it’s not the mean average or median?

@Wexboy_Value @herosnvrdie69

If my whole family ate sandwiches for every meal 3 times a day only our grocery bill would still be 800 dollars a month. To follow budgeting guidelines, I would need to make 64,000 dollars a year…to afford to only eat sandwiches. You can’t budget your way out of poverty.

I’m a democrat but it’s very hard to make the case for democracy while listening to BBC’s Any Answers

@TMTLongShort @StockMarketNerd Ah I see, yeah agreed

@brookgatecap @StockMarketNerd Needed to solve cancer which is needed to monetize AI

If you are on the buyside and your PM or CIO insists AI is a bubble you should do everything in your power to find a new seat. How deeply you understand bottlenecks and tokenomics will be the primary driver of alpha over the next five years and you should put yourself in a position where you have the leash to be involved and learning instead of watching from the sidelines. We are at the starting line. The people pointing to memory stocks instead of model IQ tipping points simply lack the IQ or imagination to understand that.

@TMTLongShort @StockMarketNerd What do wet labs have to do with AI bottlenecks?

@StockMarketNerd Bottlenecks. All of them. But start with the robotics and wet lab supply chains if you want something thematic 😉

Mad crowds reportedly globally for the new Royal Pop drop $uhr $uhr.sw $swgay bbc.co.uk/news/articles/…

and while that is still a 22x EV/EBIT multiple in the Base case, that is still assuming a very low margin (5%) for a luxury goods business that has done 20%+ in the recent past. At a 15% margin this is back at 10x EV/EBIT, tho given the family's insistence on keeping OPEX flat, they'll probably only get there when sales are >30% higher than 2025 which will take a few years

Google Trends results for $UHR.SW $SWGAY are massive The previous spike in 2022 was the launch of the Moonswatch collab with Omega

@Martyn_Lockhart @mr_deepvalue interesting, thanks

@brookgatecap @mr_deepvalue They are planning to pay back a lot of the debt by 2029 and the overdraft has been fixed. The point is they are turning a lot of the portfolio over at NAV so there is no way the gap between the share price should be this wide.

I’ll be in London (the City and Mayfair) on 27th-28th May. My primary interest is in deep-value and special-situation opportunities involving: Controlling blocks in listed nano caps Distressed or dormant listed vehicles Restructurings and recapitalisations Situations where a listed vehicle can become a strategic asset Partnerships with private capital looking for deal flow I approach public markets from the perspective of acquiring and improving businesses rather than trading securities. If that overlaps with your area of interest, feel free to contact me. info@mrdeepvalue.com

Looks interesting, massive discount to NAV Am I right in saying they paid ~3% effective interest on their debt? I have 45.4m interest expense on gross debt of 1596m with a 50% LTV - surely that interest rate has to come up? At 6% that is an incremental £45m in interest expense and they only did £54m in EPRA net income last year Do you know timing of issuances or whether they're planning to delever?

@mr_deepvalue Bond yields but their do t affect the company.

Accelerating sales at #wosg $wosg.l

@dougboneparth as one of my colleagues says: sometimes, if you really want a stock to go up, you've just gotta sell it first

“Okay, wait for him to sell the stock. Now make it go up 45%.”

@evfcfaddict @IMyeshkov also the $MASI acquisition looks expensive $TMO also looks interesting here imo, both high quality businesses

@IMyeshkov imo still too expensive yes

When the whole money flows into tech/semis, massive opportunities arise in other segments…

@_HonestInvestor @marketplunger1 @P_Remarks How so?

@marketplunger1 @P_Remarks $WING is a money laundering scam

@marketplunger1 @P_Remarks Views on -ve SSS at $WING ?

@P_Remarks LULU and WING starting to look very interesting.

@Hawkeye_74 I went into one in Maastricht a couple of months back, really didn’t seem special. Industry leading ROIC &c&c but looked very similar to a BME.L to me, including the mess. Except Actions being marked at 15x EBITDA or whatever it is vs MSD mult for BME.L 🤷‍♂️

#III launching a £750m share buyback. Makes sense when p/b is at 0.8x & nods to recent SP volatility ie falls. It's all about LfL growth at Action. +7.2% ex France. Mkt in recent past, ignores stuff like its just entered 2 completely new countries in Europe.

@GWInvestors Love this. The Swatch x Omega collab sold >1m units in year 1 - do you know how the economics might split here? AP gets a royalty? Share of profits?

The new labubu 🤞🏻

@valuehurts Any others taking your interest? Would add $TMO to that for sure

I’ll regret this later but sold my $BABA shares and replaced with Danaher $DHR for a 2% portfolio position. Hopefully another forever holding. Hard not to feast on the quality medical device makers here…