Capital Employed

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$LUXE could easily be a 1-2x from here. Stock at $7.80 USD -- trades at 0.2x EV/sales and 0.5x EV/gross profit. On FY26 ex-Offprice, it's at ~7x EBITDA. Run-rate rev at 2.5B EUR, growing LDD -> ~3B in 2 years. At mgmt's 8% margint target, that's like 2.6x EBITDA, and ~160m EUR in net income. About $1.30 per share in EPS. At a 15x multiple (cheap for a LDD grower) that's worth >$20. Stock has sold off on inflation fears, but lux consumers are well insulated. Meanwhile, web traffic trends continue to accelerate as LUXE turns around acquired brands Net-a-Porter and Mr. Porter.

*US meatpackers, cheap enough?* The US' largest domestic protein producers $TSN $SFD $PPC screen relatively attractively when viewed across the cycle, enjoy defensive demand, and have scale moats. However, each protein cycle is unique, and we might be approaching a time of great cost inflation at a time of demand disruption. We have to go over each of the company's segments, capital allocation history, demand/cost drivers, leverage, and arrive at a comment on their valuation

Best Stock Pitches newsletter just published. 44 ‘fresh-off-the-press’ stock pitches to get stuck into, from a variety of fund managers and investment newsletters. capitalemployed.com/p/44-best-stoc…

Thanks for having me. Excellent newsletter.

Interview #131 just published. For this edition we welcome Wengang Ji from Trigram Partners @TrigramPartners Wengang discusses his background, launching Trigam Partners, his approach to investing, and shares two stock ideas. capitalemployed.com/p/2-stock-pitc…

Fuji Sangyo $9906.T raises FY3/26 guidance today, +4% on sales & +17% on OP while bumping their dividend from 130 to 160 (3.7% yield). Remains awfully cheap at 0.9x TBV, 2.4x EV/EBIT & 7.5x P/E with ~2/3rd of mkt cap in net cash and electric grid tailwinds.

Best Stock Pitches newsletter just published. 42 ‘fresh-off-the-press’ stock pitches to get stuck into, from a variety of fund managers and investment newsletters. capitalemployed.com/p/42-stock-pit…

@mondeny Have any of them thought of swapping some that cash for gold?

上場会社の6割がネットキャッシュなので、すぐには使いきれない現預金と低収益資産を抱えてしまっているのが平均的日本の上場企業の現状。 東証に要請されて株価と資本コストを意識した経営方針を発表した企業の多くは、ネットキャッシュを維持し続ける計画を発表。つまりネットキャッシュの状態が最適な資本構成だと思っていると大々的に主張。それだけでなく、ネットキャッシュにも関わらず配当成功は50%ぐらいに抑えて残りは更に今後もキャッシュが積み上がり続ける計画を打ち出した企業が続出。 これにはさすがに東証も政府もずっこけざるを得なかったのでキャッシュを効率的に使うことをもっと考えなさいという今般の動きになったと理解しています。 ただ、企業側から余剰資金は株主還元に回すのだけは嫌だという意見を受けて妥協したのか、もっと成長投資に回せという話はいいけど株主還元をもっとせよという話はトーンダウンした方向になろうとしています。 でも、余剰資金を抱えたままだと、アクティビストファンドから株主還元せよと言われるだけでなく、単純に買収ターゲットになるリスクが高まるだけだということを企業経営者はわかっていません。余剰資金を無くさないという選択肢はないんですよ。 買収防衛策を導入しても高値のオファーを出す買い手が来たら阻止できませんよ。そのような買収提案を阻止しようとする経営陣は株主総会で入れ替えられるだけです。

Just published a bonus edition of ROE The Boat. Featuring a small cap hidden champion from South Korea. The revenue growth is modest, however they own around 70% of market share in one particular niche. The other side of their business generates high margin recurring revenue. Operating margins 12% Adj. ROCE 18% No net debt, they hold cash which equals 1/3 of their market cap. Trades on a P/E 6, with a 5% dividend yield. Full write-up can be found here ---> roetheboat.com/p/another-unde…

@BottleneckFindr Looks interesting, thanks for sharing.

I think $M7U Nynomic is mostly mispriced due to tunnel vision. LayTec is their crown jewel and the quasi-monopoly moat is real. But besides LayTec, there are 10 other subsidiaries that may turn out to be real gamechangers. You're essentially buying a photonics stock, with 9 cheap lottery tickets: 1. Spectral Engines: A tech gem that shrank laboratory instruments into coin-sized MEMS sensors for high-speed drug scanning and counterfeit medicine detection. 2. tec5 AG: An OEM specialist locked-in to the supply chains of semiconductor giants like $ONTO Innovation and biopharma leaders for real-time production monitoring. 3. Avantes: The world’s #2 in fiber-optic spectrometers, indispensable for AI chip manufacturing and even satellite missions in orbit. 4. Sensortherm: Produces the world’s fastest pyrometers, making them a mission-critical hidden champion for high-end metal 3D printing in aerospace and energy. 5. Image Engineering: The global ISO standard-setter for camera testing, essential for the explosion of cameras required in the autonomous driving revolution. 6. LemnaTec: An Agri-AI leader using multispectral sensors for real-time, non-destructive THC testing in the booming global cannabis industry. The legalization in Germany may be a major tailwind. 7. art photonics: Specialized fiber experts with billion-dollar upside for a probe that can distinguish cancer from healthy tissue during surgery. 8. NLIR: A disruptive option bet using high-speed tech to identify black plastics for recycling, perfectly timed for new mandatory EU regulations. 9. MGG Menzel / Photecture: Niche specialty lamp suppliers and a strategic US distribution gateway for the group’s high-growth technologies What I think is key: all of these technologies can provide a ton of sticky revenue, as they are embedded in expensive systems and SOPs. The infographic below doesn't add value, but is simply an accessibility feature for the low-attention ipad kiddies out there. Not Financial Advice!

First look at Japan Eyewear Holdings Co 5889.TK 🇯🇵 - microcap listed on the TSE. At first glance seems like quite a decent business. Designs, manufactures, and sells premium high-end eyeglasses through two brands - Kaneko Optical and Four Nines. Growing fast (12% YoY) both in Japan and abroad. Vertically integrated - manufacturing - sell in own retail stores. Op. margins 32% ROCE 25% No net debt. High insider ownership (CEO Shinya Kaneko is tied to the founding Kaneko Optical family/business). PE 14.5 PEG 0.44 DY 3.8% Anyone taken a deeper look at this company?

New position for @alluvialcapital – Gulf Marine Services $GMS.L 🇬🇧 Operates a fleet of self‑propelled self‑elevating support vessels that provide offshore services to the oil, gas and renewable energy sectors. Looks cheap.

@capitalemployed Wasn't me, but here is a recent pitch by someone else of a stock I own. gscm.co/blog/solitron-…

Gate City Capital stock pitch on $HOG Harley-Davidson 🇺🇸 'Nobody gets a Honda tattoo.'

Bonhoeffer Capital Management @Bonhoeffer_KDS pitch on $138040.KS - Meritz Financial 🇰🇷

Buffetology UK Fund current top 10 positions...