Yet Another Value Podcast

Michael Fritzell, founder of Asian Century Stocks, goes through his thesis on T. Hasegawa. T. Hasegawa trades at a huge discount to its domestic peers like IFF despite similar or better growth and margins, and Michael thinks some recent changes and shareholder pressure could set the company up to rerate.Michael's T. Hasegawa write up: https://www.asiancenturystocks.com/p/deep-dive-2022-8-t-hasegawa?s=wChapters0:00 Intro2:25 T. Hasegawa overview6:45 Why fragrance and flavors are so sticky9:35 T. Hasegawa's small cost to large value15:25 What is Michael seeing that the market is missing in T. Hasegawa17:30 Are continued lockdowns a risk to the business?19:00 What do you need to believe for T. Hasegawa to continue to grow?20:55 Why will T. Hasegawa realize value from their Chinese investments?22:40 Is T. Hasegawa the classic Japanese value trap?26:45 Are acquisitions a good capital allocation decision here?32:50 T. Hasegawa closing thoughts34:30 What countries does Michael think are most attractive currently?

Evan Tindell, CIO of Bireme Capital, discusses the circus that is the Elon Musk and Twitter merger agreement and explains why he thinks Delaware law and precedent suggest Elon would lose in court and be forced to close the merger on terms.My piece on Twitter: https://yetanothervalueblog.substack.com/p/twitter-the-circus-will-have-a-happy?s=wThis podcast was taped afternoon of May 23; things are moving quickly so just time stamping that!Chapters0:00 Intro2:15 Twitter overview6:45 Why bot followers do not equal mDAUs8:00 Why is Twitter mispriced right now?12:40 Specific performance versus the $1 billion break fee18:30 Defining a material adverse event (MAE)26:25 The LVMH / TIF parallels 30:00 Why Elon should avoid going to court in Delaware35:45 Could Elon actually get out of this deal on a bot miscount?38:25 Does Elon waiving DD hurt him in a potential court case?42:35 How risky will discovery be for Twitter?46:55 Elon's financing risk / what price does the TSLA margin call happen?50:15 Can Elon walk if Tesla stock blows up?53:40 Will TWTR's board fold?1:01:00 What if Elon losses and still refuses to perform?1:03:45 Potential for an activist like Carl Icahn to get involved1:06:00 Why a mediation and slight price cut might be the most likely outcome1:09:50 What's the downside if Twitter loses?1:13:00 Event path odds

Ales Morris, founder of The Science of Hitting, returns to the podcast to discuss all things media, including his investment in Disney and Netflix.Alex's first podcast appearance on Spotify: https://twitter.com/AndrewRangeley/status/1388122956837097482?s=20Alex's / TSOH substack: https://thescienceofhitting.comChapters0:00 Intro2:55 What's going on in media?6:15 What is the market missing with its media bearishness?8:45 Is media too competitive to invest in?14:35 Why is Netflix having a problem with breakout hits?18:30 Can you trust these companies when they say "trust us"?20:30 Is it true that Alex is a Marvel hater?22:30 NFLX's move into ad supported30:05 NFLX's (and the industry's) rising churn35:00 Why is DIS bundling when everyone else is consolidating into one product?38:05 Why hasn't Seinfeld broken out on NFLX?42:30 ESPN's streaming future49:00 Can you really make a profit streaming sports?54:15 Is Marvel fatigue real?58:50 Disney parks1:01:50 Opportunity cost of investing in DIS vs NFLX vs CMCSA (or something else)1:06:35 Berkshire buying Paramount

Luis Sanchez, founder of LVS Advisory, discusses his bull case for Endor AG, including why competitors can't recreate their product and how they benefit from the current boom in motor sports like F1 and NASCAR.My notes on Endor: https://twitter.com/AndrewRangeley/status/1526577674801520642?s=20&t=wqYSVMYKfG3kx8M9qhkB9wLuis's MOI pitch: https://twitter.com/LuisVSanchez777/status/1524707206574321666Chapters0:00 Intro2:20 Endor Overview14:40 Where is Luis most divergent from the market on Endor?24:15 How frequently do people upgrade?27:30 Why isn't Endor the typical COVID beneficiary about to fall off a cliff?36:00 How the current motor sport boom helps Endor42:00 Endor's valuation52:00 Endor's long term margin potential56:00 Endor's move into lower end products1:02:40 Luis's closing thoughts

Chris DeMuth returns to the podcast for a new monthly segment talking about the current state of the marketsMy note on event driven situations; https://yetanothervalueblog.substack.com/p/weekend-thoughts-the-rich-set-of?s=wMy note on energy companies: https://yetanothervalueblog.substack.com/p/when-are-the-activists-and-pe-funds?s=wChapters0:00 Intro1:55 Chris's state of the markets11:05 KSS16:40 The regulatory environment and its impact on deals22:15 ATVI / MSFT28:50 TWTR and Elon Musk39:00 Commodity / energy stocks disconnect from strip pricing

Bill Chen makes his second podcast appearance to discuss Clipper Realty (CLPR). Clipper owns a bunch of NYC apartment buildings, and Bill thinks the current boom in apartment rentals will drive strong returns for the company going forward.Bill's first podcast appearance: https://yetanothervaluepodcast.substack.com/p/bill-chen-breaks-down-frphs-sotp?utm_source=url0:00 Intro2:05 CLPR overview4:35 Where is Bill most differentiated on CLPR?8:20 How does the post-COVID NYC apartment boom help CLPR?14:15 CLPR's leverage and balance sheet16:45 Why CLPR over SLG or another similar REIT?20:30 Are the long term trends against NYC?28:00 Rent control in NYC34:50 Why do people have cable companies and their landlords?39:30 CLPR and inflation41:10 "Regulatory inflation" and NYC's moat43:30 CLPR's controlling family47:15 Discussing cap rate environment for NYC apartment49:40 CLPR's development projects and potential value creation53:40 The safety of CLPR1:00:00 Bill makes me feel bad about my shoebox apartment

In this special bonus episode, Randy Baron provides updates on his prior podcast appearances on RNLX and AMRS.Randy's appearance on GDS: https://twitter.com/AndrewRangeley/status/1517512427071545346?s=20&t=UyPsEybQEnbnE9riOPd5yQRandy's appearance on AMRS: https://twitter.com/AndrewRangeley/status/1407669290241777666?s=20Randy's appearance on RNLX: https://twitter.com/AndrewRangeley/status/1448604500009242632?s=20Chapters0:00 Intro0:45 RNLX update4:05 AMRS update9:45 AMRS's November convert raise: good or bad?15:15 Valuing AMRS's consumer brands20:20 Should AMRS just be focusing on consumer brands?25:15 AMRS capital needs going forward28:40 AMRS's management comp and shareholder alignment

One of the people's favorite guests, Randy Baron, returns to the podcast to talk about his thesis for GDS. GDS is a Chinese data center company, and Randy goes in depth into the company, including why their tier 1 footprint gives them a moat, how GDS is trading at a discount to private market values, and why ADR and VIE fears may be overblown.My notes on GDS: https://twitter.com/YetAnotherValue/status/1516805266565644289?s=20&t=_7FcaMp4YYgZ1S4htJXz6gRandy's first podcast on AMRS: https://twitter.com/AndrewRangeley/status/1407669290241777666?s=20Randy's second podcast on RNLX: https://twitter.com/AndrewRangeley/status/1448604500009242632?s=20Tubes (data center book mentioned in the pod): https://amzn.to/3rKUxRqChapters0:00 Intro2:20 Data Center Overview9:10 Chinese Data Center overview11:20 Randy's history with GDS17:45 GDS valuation versus private market comps24:00 What does Randy see in GDS that the market is missing?28:45 GDS's international expansion plans34:00 Why does GDS's tier 1 footprint give them a moat?39:50 GDS's M&A and growth ambitions47:30 GDS's recent raise from Sequoia China and peer VNET's acquisition offer52:15 The China ADR and VIE issues58:55 Wrapping up the GDS thesis

Andrew Wagner, CIO of Wagner Road Capital Management, discusses his thesis on Copart (CPRT).My Copart (CPRT) notes; https://twitter.com/YetAnotherValue/status/1514627334464323589?s=20&t=yjNrQXKvqPrQdJZ_Z00TdwAndrew's post on Copart: https://www.wagnerroadcm.com/blog/2022/4/8/what-i-like-about-copart-and-how-i-found-itAndrew's Book: The Economics of Online Games: https://amzn.to/3KNkAPnChapters0:00 Intro2:05 How Andrew found CPRT5:30 What is the market missing in CPRT?9:20 What does CPRT do?11:00 What is CPRT's moat?13:25 Does CPRT's network advantages give them an edge in expansion?15:00 Bear case #1: Valuation16:30 Bear case #2: COVID earnings boost18:50 Bear case #3: Why isn't CPRT buying back shares?23:30 Why is CPRT so much better than IAA?25:30 CPRT's management27:45 CPRT's land ownership33:15 CPRT's international operations35:20 Does CPRT's moat travel internationally?38:55 Ancillary services opportunity43:15 CPRT's long term tailwinds from "totaled" cars47:00 Do EVs change CPRT's economics?49:30 Car ownership trends and CPRT

Bob Robotti, founder of Robotti Advisors, discusses his thesis on Westlake Corporation (WLK) and why he thinks "old economy" stocks are poised for a comeback.My notes on WLK: https://twitter.com/AndrewRangeley/status/1513885052974899200?s=20&t=QiY-1L2H5U3GZ-S5YjGFwwChapters0:00 Intro2:50 WLK Overview6:10 Diving into WLK's segments and products10:45 WLK's favorable supply demand dynamics14:40 WLK's valuation18:55 WLK's control shareholders and family ownership22:15 How can WLK acquire so accretively?28:00 WLK's capital allocation31:45 Do WLK's segments make sense together?39:00 Why buy WLK versus peers?41:40 BLDR and the building products distributors44:45 Why "don't buy cyclicals at the top" might be wrong today51:00 What happens if tech stocks stumble / Revenge of the old economy