Value Hive Podcast

Stefan Lingmerth: Distress Investing, Trinseo $TSE, & Borr Drilling $BORR

Nov 8, 2024

Stefan Lingmerth, founder of Sunshine Kapital, specializes in distressed investing, turning around struggling companies. He shares his journey from New York to Miami, emphasizing balance sheets and operational recovery. Key discussions include the investment potential in Borr Drilling, highlighting low stock prices and shareholder returns. He also elaborates on identifying turnaround opportunities and the significance of networking in the investment community. Stefan’s insights offer a captivating glimpse into the world of distressed assets and strategic investing.

01:02:53

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Stefan Lingmerth

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Quick takeaways

Stefan Lingmerth emphasizes the importance of thorough analysis of distressed companies with improving balance sheets, focusing on potential recoveries and cash flow stability.

His investment strategy prioritizes a limited number of well-researched opportunities each year, contrasting with frequent trading to enhance value identification.

Building connections in the investment community, such as through the Miami Business Club, fosters collaboration and fresh insights crucial for informed decision-making.

Deep dives

Macro Ops and Their Unique Value Proposition

The Macro Ops Value Hive podcast aims to provide high-risk adjusted returns by offering unique research and educational resources. Their community boasts exceptional retention rates due to its engaging Slack environment, making it appealing for both professionals and motivated retail investors. The content focuses on fostering a deep appreciation for investing and continuous improvement among its members. Joining this collective offers an opportunity to learn from some of the most knowledgeable operators in the investment field.

Intro

2min

Navigating Distressed Investments

23min

Investment Screening Strategies and Market Analysis

2min

Investment Insights on Borr Drilling and Market Strategies

2min

Navigating Distress Investing

10min

Navigating Distressed Investments

15min

Networking Essentials for Investors

9min

I'm excited to share my conversation with Stefan Lingmerth, founder of Sunshine Kapital (yes, with a K!).

Stefan is a distress/stress investor. He buys the common stock of bombed-out, left-for-dead companies that look like they're heading for bankruptcy.

If a stock is making new lows, there's a good chance Stefan knows about it and has already analyzed their balance sheet.

This week, we discuss distressed investing, Trinseo $TSE, and Borr Drilling $BORR.

Note: Stefan holds positions in the stocks mentioned at the time of recording. None of this is investment advice. Do your own work.

Also note: I do not own shares in any of the stocks mentioned at the time of recording, nor do I plan on buying shares in the coming weeks.

Finally, a big thanks to our sponsors for making this episode happen.

Mitimco

This episode is brought to you by MIT Investment Management Company, also known as MITIMCo, the investment office of MIT. Each year, MITIMCo invests in a handful of new emerging managers who it believes can earn exceptional long-term returns in support of MIT's mission. To help the emerging manager community more broadly, they created ⁠⁠⁠⁠emergingmanagers.org⁠⁠⁠⁠, a website for emerging manager stockpickers.

I highly recommend the site for those looking to start a stock-picking fund or just learning about how others have done it. You'll find essays and interviews by successful emerging managers, service providers used by MIT's own managers, essays MITIMCo has written for emerging managers, and more!

TIKR

TIKR is THE BEST resource for all stock market data, I use TIKR every day in my process, and I know you will too. Make sure to check them out at ⁠⁠⁠⁠TIKR.com/hive⁠⁠⁠⁠.