PJ Kurzweil, founder of PJ's SMID Cap Ideas, comes on the podcast to discuss his write up on Spectrum Brands (SPB). Spectrum is currently in the process of selling their HHI business, and whether that deal goes through or not PJ thinks the stock is too cheap given the quality of their brands / businesses.
My notes on SPB: https://twitter.com/YetAnotherValue/status/1547219565016453121?s=20&t=n_liDehcIwWBLmo0x51NLQ
PJ's SPB write up: https://philippejkurzweil.substack.com/p/spectrum-brands-hard-catalysts-to
Chapter
0:00 Intro
2:10 SPB overview
4:55 Why is SPB interesting right now?
7:30 What's going on with the HHI sale?
13:00 HSI's HSR process
17:30 What happens if the HSI deal falls through?
24:00 HPC's value
31:20 Inflation's impact on SPB
33:30 Did pets and garden benefit too much from COVID pull forward?
37:00 Are millennials a tail wind going forward?
40:20 SPB's pet brands
45:50 What drives SPB's near term earnings growth?
48:00 Is SPB underspending on ad spend?
50:00 SPB versus CENT
55:00 Capital allocation at SPB
