BackgroundARLP is the second-largest coal producer in the eastern United States. It makes and sells “steam coal” – coal burned to produce steam for the production of electricity – for utilities and industrial companies. Looking at historic financials (Exhibit 1), we can see the business has seen a near doubling in quarterly sales from $319mContinue reading “ARLP: A poor capital allocator benefitting from record coal prices”
Category Archives: Company
Global Foundries (GFD) Q3’22 earnings call
Summary financials Key Takeaways “Since the beginning of the quarter, some of our customers have requested to modestly adjust some of their 2023 shipments downward, particularly with respect to the first half of 2023″
MediaTek: Hurt by US closing Huawei loophole
Source: “Taiwan’s ‘bandit phone king’ hit by US crackdown on Huawei”, FT, 24th August 2020 In May 2020, the US barred chipmakers from selling Huawei any custom-made semiconductors made with US equipment. For Huawei, this would have made MediaTek’s off-the-shelf smartphone chipsets the obvious choice, a development that would have boosted the Taiwanese chipmaker’s fortunesContinue reading “MediaTek: Hurt by US closing Huawei loophole”
How Ratuken’s OpenRAN solution sidesteps software traditionally provided by Huawei, Ericsson and Nokia
Source: FT, Jul-2020, “Telecoms networks look to fix Huawei problem with open source software” The nascent “OpenRAN” movement is now on the verge of launching a national 5G network without the help of Huawei or its main European competitors Ericsson and Nokia. The competing technology is provided by ecommerce group Ratuken, which has been workingContinue reading “How Ratuken’s OpenRAN solution sidesteps software traditionally provided by Huawei, Ericsson and Nokia”
What are the US housing trends we are seeing in DFH markets?
Thursday 10th November, 2022 Dream Finders Homes is predominantly operating in Southern US states, which are benefiting from long-term positive migration trends. (Exhibit 1) Exhibit 1: Almost half of US population growth since the 1970s has been in the South Source: US Census Bureau Key drivers being warmer weather and lower state taxes (State income taxesContinue reading “What are the US housing trends we are seeing in DFH markets?”
DFH’s land options and potential balance sheet impact from write-offs
Thursday 10th November, 2022 The premiums paid for options are assets accounted for in the balance sheet under “Lot Deposits”, as of September 30, 2022 these were valued at $291m. Having to walk away from all option premia would be a bad outcome. The impact on the balance sheet would depend on: DFH’s current lotContinue reading “DFH’s land options and potential balance sheet impact from write-offs”
Wayfair’s path to 8% FCF yields
Sunday 10th July, 2022 “Over the last 4 or 5 years, we’ve had this agenda on how we can unlock a lot of gross margin. We’re talking about a 1,000 basis point runway, and this was back when we were at 24% to 25% gross margin.” – Niraj Shah, CEO of Wayfair, Q3 ‘21 earningsContinue reading “Wayfair’s path to 8% FCF yields”
BUY Wayfair: An 8x in 8 years?
Wednesday 29th June, 2022 Wayfair’s stock has been hit from multiple angles. The home goods industry in which it operates is set for further contraction as rising food and energy costs divert consumer spending away from discretionary categories like furniture and home furnishings. The industry has also seen sales shrink as consumers redirected their dollarsContinue reading “BUY Wayfair: An 8x in 8 years?”
HelloFresh: May lose their share of the pie
Thursday 28th April, 2022 If it can maintain its rapid growth and profitability, it’s a bargain HelloFresh (XTRA: HFG) provides meal kits to customers in 16 countries and has grown sales at a 5yr CAGR of 60%! In absolute terms, sales have grown from €600m in 2016 to €6B in 2021. It currently has aboutContinue reading “HelloFresh: May lose their share of the pie”
Why I am selling out of Playtech
Wednesday 10th March, 2021 Summary I am selling out of Playtech because I have found evidence to suggest Playtech’s core business-to-business (B2B) software product, “IMS”, is not as powerful in increasing the revenues of its online customers as I previously thought. Background I bought shares in Playtech in April and July 2020 at an averageContinue reading “Why I am selling out of Playtech”
The Equity Analyst 