also, tigo's independent adv group needed to hire Goldman Sachs+Morgan Stanley AND 2 global law firms !?! cronyism and CYA are better business models than telecom!
alwaysinvertit could have given them a very detailed FV breakdown, but now we will need him to find how much of this 'advice' is buried on the SG&A line item!
i mean paying huge sums to crony connections at 2 expensive financial consultants and 2 expensive law firms is not needed, and thus financial consulting is a better business than running a telecom.
there is an obvious long-term buyer in this case, who more than likely already has a better idea of the value than any of the consultants. so some very simple 3rd-party evaluation would have been adequate.
Enjoying always to read this blog. Excellent work. I was wondering about the recent drop in share price of Text. It is now trading at very low multiples given the quality of its business assuming the narrative didn’t change. I couldn’t find any specific news that could explain the recent drop in share price and wanted to ask whether some other readers have more information other than their latest press release from 1.10.24
Thanks for commenting and great you enjoy the blog.
Text posted disappointing numbers for the most recent quarter, in particular a decrease in the number of subscribers of their most important product, LiveChat by >1,000. There was also an IR call which may have produced more questions than answers.
At the current level, from my view, Text is priced as a declining rather than growing business and the question is if they can get back on the growth path. For that, they need to find a way to reduce the churn add customers on a net basis and cross-sell more. We shall see. Still invested here.
I'm very late in reading your post. Thank you very much for the insights into your (known) strategy and the assessment of some stocks. Even though I only have Hermle and only four of your stocks in total in my portfolio, I would feel comfortable with all of them.
Thanks from the mentions. I agree with the contrarianism conclusion, and I would add that some diversification on the contrarianism helps to have the odds in our favor.
also, tigo's independent adv group needed to hire Goldman Sachs+Morgan Stanley AND 2 global law firms !?! cronyism and CYA are better business models than telecom!
alwaysinvertit could have given them a very detailed FV breakdown, but now we will need him to find how much of this 'advice' is buried on the SG&A line item!
what exactly do you mean,? I am asking just out of curiosity
i mean paying huge sums to crony connections at 2 expensive financial consultants and 2 expensive law firms is not needed, and thus financial consulting is a better business than running a telecom.
there is an obvious long-term buyer in this case, who more than likely already has a better idea of the value than any of the consultants. so some very simple 3rd-party evaluation would have been adequate.
Enjoying always to read this blog. Excellent work. I was wondering about the recent drop in share price of Text. It is now trading at very low multiples given the quality of its business assuming the narrative didn’t change. I couldn’t find any specific news that could explain the recent drop in share price and wanted to ask whether some other readers have more information other than their latest press release from 1.10.24
Thanks for commenting and great you enjoy the blog.
Text posted disappointing numbers for the most recent quarter, in particular a decrease in the number of subscribers of their most important product, LiveChat by >1,000. There was also an IR call which may have produced more questions than answers.
At the current level, from my view, Text is priced as a declining rather than growing business and the question is if they can get back on the growth path. For that, they need to find a way to reduce the churn add customers on a net basis and cross-sell more. We shall see. Still invested here.
agree.
I'm very late in reading your post. Thank you very much for the insights into your (known) strategy and the assessment of some stocks. Even though I only have Hermle and only four of your stocks in total in my portfolio, I would feel comfortable with all of them.
Many thanks for the kind feedback
Nice
nice update.
for 'country contrarian', verdad has a great, but irregular, series of articles on EM and europe....
https://verdadcap.com/archive/emerging-markets-crisis-investing
Thanks from the mentions. I agree with the contrarianism conclusion, and I would add that some diversification on the contrarianism helps to have the odds in our favor.