Yet Another Value Podcast

Latest Episodes:

John Maxfield on Investing in Banks in a Post-SIVB World Mar 21, 2023

Show notes

John Maxfield, Editor of the Maxfield on Banks Newsletter on Substack, has spent nearly two decades studying America's best and worst banks, the history of banking, and interviewing bank leaders. John joins the Yet Another Value Podcast today to answer your burning questions regarding investing banks, his mindset during this "crisis" and how to think about investing in banks moving forward.

For more information and to subscribe to John's new substack, please visit: https://maxfieldonbanks.substack.com/

Show notes:

[0:00] Introduction + Episode sponsor: Stream by Alphasense

[1:43] John Maxfield's background and how he got into investing in banks

[4:52] Overall thoughts investing in banks right now in a post-SIVB, UBS buying Credit Suisse world

[8:43] Blood in the streets in banks vs. other markets[12:45] Why are customers with $10-100M running uninsured deposits in First Republic?

[13:55] Regional banks

[21:13] How should folks be weighing the risks with regard to investing in banks?

[26:54] Catalysts that caused the 1873 crisis; what can we learn from that crisis

[29:06] The "everyone needs to chill" model when thinking about run on the banks

[33:20] Bank metrics - how KPIs investors care about have changed/evolved

[35:25] Franchise risk for banks

[38:48] Does what is happening now have an impact on the community banks?

[47:11] Bank stocks that look interesting to John Maxfield in a Post-SIVB world

[57:47] How do you make $$ as a bank investor buying a bank for 4x book value?

[59:47] Generalist interest in banks: what should folks put more weight on when evaluating various investing opportunities (HINT: how did they perform during the 2008 financial crisis)

[1:04:38] How important is speaking with management from bank stocks?

[1:06:41] Closing thoughts Today's episode is sponsored by: Stream by Alphasense Are traditional expert calls in the investment world becoming obsolete? According to Stream, they are, and you can access primary research easily and efficiently through their platform. With Stream, you'll have the right insights at your fingertips to make the best investment decisions. They offer a vast library of over 26,000 expert transcripts, powered by AI search technology. Plus, they provide competitive rates on expert call services, and you can even have an experienced buy-side analyst conduct the calls for you. But that's not all. Stream also provides the ability to engage with experts 1-on-1 and get your calls transcribed free-of-charge—all for 40% less than you would pay for 20 calls in a traditional expert network model. So, if you're looking to optimize your research process and increase ROI on investment research spend, Stream has the solution for you. Head over to their website at streamrg.com to learn more. Thanks for listening, and we'll catch you next time. For more information: https://www.streamrg.com/

An exciting time in the Cable Business with Cable One Julia Laulis (NYSE: $CABO) Mar 20, 2023

Show notes

Julia Laulis, Chair of the Board, President & CEO of Cable One, Inc. (NYSE: CABO), joins Yet Another Value Podcast to discuss how the cable industry is positioned right now in 2023, and Cable One's focus moving forward. Cable One will also be at The Markel Corporation's 2023 shareholders meeting in Richmond, VA on May 17, 2023, where Andrew will also be in attendance. Chapters: 0:00 - Introduction + Episode sponsor: $BYTE 1:44 - Let's talk about the Cable business; why its an exciting and scary time in the space 4:04 - Does fixed wireless pose a risk to Cable One's focus on broadband for small cities, large towns strategy? 6:47 - The fear with fixed wireless 10:13 - Cable One's experience with fixed wireless 12:13 - Data usage 15:16 - What is it that ultimately turns a fixed wireless customer into a parking place for a future cable customer? 17:17 - Reliability of the network 19:07 - MD&O strategy 21:56 - Fiber overbuilding in general 27:49 - Customer ARPU 31:37 - Cable One's pricing 34:44 - Data throughputs 38:14 - Switching to IPTV and how does this improve the economics of the business 42:13 - Julia's thoughts on fiber vs. Docsis 4.0 for Cable One 46:57 - Is Julia starting to the M&A environment picking up? 48:51 - Share buybacks and capital allocation strategy 51:27 - Customer churn and macro perspective on new connects 1:00:16 - Cont'd. on customer low churn Today's episode is sponsored by: Roundhill IO Digital Infrastructure ETF – BYTE Investing in the real assets that underpin our digital world has never been easier. We are pleased to bring you this podcast in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF – BYTE - which trades on the New York Stock Exchange under the ticker symbol - “B” “Y” “T” “E”. The fund tracks the BYTE Index, which measures the performance of 40 leading global digital infrastructure businesses, such as towers and mobile communications, fiber and fixed line connectivity, and data centers. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte - read carefully. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing in BYTE. Distributor Foreside Fund Services, LLC: https://www.roundhillinvestments.com/etf/byte/

Chadd Garcia finds price dislocation in global digital infrastructure firm, DigitalBridge $DBRG Mar 14, 2023

Show notes

Chadd Garcia, Portfolio Manager and Senior Research Analyst at Schwartz Investment Counsel Inc. - Ave Maria Mutual Funds, joins the Yet Another Value Podcast for the first time to discuss DigitalBridge Group, Inc. (NYSE: DBRG), and why he finds there could be price dislocation in the global digital infrastructure firm.

Chapters:

0:00 - Introduction + Episode sponsor: $BYTE

2:23 - Overview of DigitalBridge Group, Inc. (NYSE: DBRG)

8:10 - Chadd's thoughts betting on CEO, Marc Ganzi, + background

12:38 - First part of the valuation argument, Chadd's describes the sum of the parts

18:17 - DigitalBridge investment summary so far + second part of the valuation argument (asset pitch), and what the sell-side is missing when they look at the asset value side of the business

26:30 - Thinking through the income statement and cash flow

29:38 - Updated guidance for 2023 and 2025: how does Chadd think about valuation with respect to this information

32:14 - Operating leverage

33:44 - Two acquisitions on the asset management business and their affect on D/E multiple

37:47 - Opportunity cost: Why choose DigitalBridge over alternatives?

40:02 - Addressing pushback on DigitalBridge 45:45 - Outlook on fundraising & acquisition environments

48:47 - Value catalysts for 2023

49:49 - Thinking the the DBRG's scaling potential

50:59 - Does Chadd Garcia think DBRG eventually branches outside digital infrastructure?

52:36 - DBRG's capital allocation strategy

55:45 - Marc Ganzi's payout incentive and how that affects investor sentiment/thesis on DBRG

1:01:04 - Closing thoughts on DBRG

For more information about Chadd Garcia and Schwartz Investment Counsel Inc. - Ave Maria Mutual Funds, please visit: https://www.schwartzinvest.com/investing-with-us/ave-maria-mutual-funds/

Today's episode is sponsored by: Roundhill IO Digital Infrastructure ETF – BYTE

Investing in the real assets that underpin our digital world has never been easier. We are pleased to bring you this podcast in partnership with Roundhill Investments, the advisor to the Roundhill IO Digital Infrastructure ETF – BYTE - which trades on the New York Stock Exchange under the ticker symbol - “B” “Y” “T” “E”. The fund tracks the BYTE Index, which measures the performance of 40 leading global digital infrastructure businesses, such as towers and mobile communications, fiber and fixed line connectivity, and data centers. For a prospectus and more information, please visit roundhillinvestments.com/etf/byte - read carefully. Investing involves risk, including possible loss of principal. Investors should consider the investment objectives, risks, charges, and expenses carefully before investing in BYTE. Distributor Foreside Fund Services, LLC: https://www.roundhillinvestments.com/etf/byte/

Chris McIntyre thinks Sotera is an incredible business at a good valuation $SHC Mar 07, 2023

Show notes

Chris McIntyre returns to the podcast to discuss Sotera Healthcare (SHC), why he thinks it's such a good business, and why he thinks the stock is still undervalued even after a big run in the wake of putting their legal liabilities (largely) behind them.

Chapters

0:00 Intro
2:15 Sotera Overview
5:30 What makes Sotera such a good business?
14:30 Why it's so unlikely a new competitor can enter the space
19:55 Discussing Sotera's "growth algorithm"
23:30 Sotera's multiple / valuation
32:00 Historical legal liabilities overview
38:45 The "science" behind the legal liabilities
43:15 SHC's settlement and putting the legal liabilities behind them
49:00 Why Georgia is not the same risk as Illinois was
53:35 Sotera's controlling shareholders and their plans for the company
56:00 M&A and roll up possibilities
1:00:45 Closing thoughts

Chris DeMuth's State of the Markets February 2023 Mar 01, 2023

Show notes

Chris DeMuth returns to the podcast for his monthly state of the markets, with updates on TGNA, ATVI, AMC / APE, and MANU.

Chapters

0:00 Intro
2:30 TGNA
27:00 ATVI / MSFT
42:30 AMC / APE
50:00 MANU

Yaron Naymark on IWG's value case Feb 27, 2023

Show notes

Yaron Naymark returns to the podcast to discuss the value case for IWG (London Listed). IWG is best known for their Regus brand, which competes with WeWork in the flex office space. Yaron thinks the market is discounting the operating leverage IWG will realize as they put COVID behind them and begin to accelerate their managed locations offering.

Chapters

0:00 Intro
2:10 IWG overview
12:05 How does the current high vacancy office space impact flex
17:00 Why COVID and tech layoffs could be a tailwind for flex office demand
20:05 Why office owners can't do flex themselves
28:30 Discussing WeWork's brand versus IWG
39:15 IWG's operating leverage and current valuation
52:35 Why is it taking IWG so long to accelerate their franchise business / refranchise corporate locations
55:50 Is pitching value creation / operating leverage just a Waiting for Godot story?
1:05:00 Looking at a potential Instant sale
1:12:30 The complexities of IWG's financial reporting

Josh Young from Bison Investments discusses on Vital Energy and his energy outlook $VTLE Feb 13, 2023

Show notes

Josh Young, CIO of Bison, returns to the podcast to discuss what's going on in the energy markets and his recent investment thesis for Vital Energy (VTLE).

Bison's VTLE thesis: https://bisoninterests.com/content/f/vital-energy-is-deeply-discounted

Chapters

0:00 Intro
3:15 What's happened in energy stocks since Josh's last appearance
5:45 Discussing the outlook for nat gas
15:10 Josh's current outlook for oil
24:30 Is the oil market properly reflecting China's reopening
29:30 Can Russia keep up current production levels?
34:35 VTLE overview
51:00 Breaking down VTLE's assets a little further
57:35 What are the little things that energy companies do to improve operations
1:01:20 Has VTLE earned the right to pursue M&A?
1:07:00 VTLE's base case NAV valuation
1:11:30 Will private equity ever step back into the energy space?

Chris DeMuth's State of the Markets January 2023 Jan 30, 2023

Show notes

Chris DeMuth joins the podcast to discuss the state of the markets in January 2023 and discuss what's on his mind, including updates on AVTI, the meme stocks roaring back, and why energy stocks seem poised to continue to perform well.

Chapters

0:00 Intro
2:15 What's on Chris's mind
5:20 Quick hits on ATVI, SPB, and SJR
15:00 More on ATVI
24:30 Meme stocks are back!
30:00 Continued discussion on AMC / APE
37:00 Shareholder discounts and WE's discounted desks
39:30 Energy stock performance versus energy prices over the past year
44:20 Why the world seems structurally short every commodity

Artem Fokin from Caro-Kann on Kaspi $KSPI Jan 23, 2023

Show notes

Artem Fokin, founder of Caro-Kann Capital, discusses the bull case for Kaspi (KSPI). Kaspi is the dominant fintech in Kazakhstan, and Artem breaks down how it's trading for a value price despite rapid growth and how its dominance will allow it to grow into new sectors of the Kazakhstan economy.

Kaspi IPO case study from HBS: https://www.hbs.edu/faculty/Pages/item.aspx?num=56825

Chapters

0:00 Intro
2:30 KSPI Overview
8:15 Discussing how ingrained in Kazakhstan Kaspi is
11:20 Sizing and breaking down the payments business
24:45 How Kaspi's data helps them with consumer loans
31:30 Kaspi as a "tax" on the Kazakhstan economy
36:30 Discussing management and Kaspi capital allocation
43:40 Run on the bank risk 48:20 Kazakhstan country / GDP risk
53:00 Why hasn't KSPI succeeded outside of Kazakhstan
1:00:30 How to think about valuing KSPI
1:08:00 Framing KSPI's local currency risk

Jeremy Raper on his Serica engagement campaign (SQZ) Jan 19, 2023

Show notes

Jeremy Raper returns to the podcast to discuss his latest "engagement campaign" at London listed Serica Energy (SQZ). In particular, he focuses on why Serica is trying to rush through their most recent deal and why shareholders should consider voting against the share issuance at the meeting next week.

Jeremy's letter to Serica: https://rapercapital.com/wp-content/uploads/2023/01/open-letter-Serica-Board-1.pdf

All of Jeremy's engagement campaigns: https://rapercapital.com/engagement-campaigns/

Chapters

0:00 Intro
2:30 What's happening at SQZ
8:45 SQZ's past deal rejections and timing on this deal
15:45 Why an "accretive" deal does not necessarily create value
17:30 How this deal insulates management and discourages shareholder feedback
22:05 Discussing SQZ's shareholder base
27:30 How this deal gives away a controlling stake in Serica for free
30:00 What should shareholders who don't like this deal should do
32:20 How Serica management will respond if the current vote fails
36:05 Providing an update on the coal trade
47:35 Discussing Unit Corp (UNTC)

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