Yet Another Value Podcast

PJ Kurzweil on Spectrum Brands SPB

Jul 18, 2022

01:05:45

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Highlights

AI Chapters

Episode notes

Aquatic Business - Centu Spectrum Branc Pet Fish

01:52

H H I Sale - What's the Multiple They're Selling It For?

02:46

Is Your Base Case Worth Three Point One Billion?

01:47

Introduction

4min

Is This a Bloated Platform Company or a Platform Company?

3min

H H I Sale - What's the Multiple They're Selling It For?

3min

I Think It's the Greatest Business in the History of the World.

2min

Is There a Regulatory Angle to This Merger?

4min

Smart Locks

4min

Is That a Ten and a Half Times?

2min

Is There Buyers Remorse in the H H I Business?

3min

The Smokeless Gril

3min

10.

The Business Is Under Earnings - Is That Really Real?

3min

11.

Inflation

3min

12.

Home and Garden and Walmartan - Is This Too Much a Cobe Beneficiary?

3min

13.

Millennials Are More Likely to Own a Home, Right?

3min

14.

Global Pet

3min

15.

Is There a Barrier to Entry?

2min

16.

How Do You Think the Stock Is Trading for Seven Times?

3min

17.

Are Consumer Brands Under Investing and Advertising?

2min

18.

Central Garden and Pet

3min

19.

Aquatic Business - Centu Spectrum Branc Pet Fish

2min

20.

Capital Location

4min

21.

Is Your Base Case Worth Three Point One Billion?

2min

22.

The Stock Still Looks Very Cheap, Even if the Deal Doesn't Go Through

3min

23.

The Real Magic of Buying for a Billion Dollars

3min

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