Investor Idea Event highlights several exciting opportunities
Revelare hosted a Buyside Event in London where long theses were shared for the following companies: DSV based on an acquisition of Schenker; BFF Bank on an upcoming regulatory approval from The Bank of Italy; Adyen beating consensus estimates; DO & CO lapping capex investments and seasonality; Carvana transitioning to a growth stock with potential for 500% upside; and FTAI Aviation stock doubling from growth and execution. A short thesis was also presented for Edenred which focused on accounting issues and tech disintermediation. Please contact us if you would like to discuss any of these ideas in more detail.
Edition: 199
- 15 November, 2024
DSV (DSV DC) Denmark
Industrials
An Iron Blue score of 30/60 is top quartile (fertile ground for shorting). Red flags include elevated stripped out restructuring costs and acquisition (GIL) fair value adjustments. There is also an expanded gap between headline net debt and Iron Blue’s preferred calculation method (factoring +DKK0.6bn y/y, restricted cash +DKK0.9bn y/y). Trade receivables days outstanding have fallen to a decade low (50 vs. decade range of 56-73 days), leaving risk of mean reversion. Governance red flags include a non-independent board & committees as well as an unusual CEO variable pay approach (share options based and pay-out on EBIT/TSR/ESG rather than EPS, cashflow or ROI).
Edition: 154
- 17 February, 2023