How do you value a subscription business? [25iq]
The logic of patience [Value Investor India]
A look at BOFI Federal Savings: Annals of the Bank of Misery [SIRF]
On the struggles of shopping malls part 1 and part 2 [Adventures in Capitalism]
America's venerable food brands are struggling [WSJ]
Inside Formula One's (FWONK) race for world domination [FT]
A look at Liberty Braves Group (BATRA) [Yet Another Value Blog]
A new record high for US consumer debt [WSJ]
This telecom bet big on landlines and lost [WSJ]
Qatar: the global empire of a tiny country [Amrank]
10 years after the last bull began to fail, this market shows fewer signs of trouble [CNBC]
The personality trait that massively improves decision making [Inc]
This guilt-free ice cream is a cult hit, thanks to Instagram [Bloomberg]
Wednesday, July 19, 2017
What We're Reading ~ 7/19/17
Friday, October 21, 2016
Barry Rosenstein on the Market, Active vs Passive, & More
Barry Rosenstein of hedge fund JANA Partners was interviewed on CNBC yesterday and he said stockpicking isn't dead and the push to passive investing is just a 'bubble' of a trend. He noted: "Wall Street has a great ability to overdo a good thing."
On the market: "I think the market's fairly valued; I don't think it's cheap, I don't think it's expensive; there's pockets of value. It's hard to get excited about corporate earnings growth right now."
On hedge funds: "I think the fact that we're no longer in a one directional market is going to remind people why they want to be in hedge funds again. I believe this is the kind of market where a fund like ours can find interesting situations and take advantage of the volatility."
On activism, Rosenstein said "as long as human beings are running public companies and as long as the current board dynamic exists, there's always going to be a need for activism. Sometimes boards lose sight of what needs to happen." He thinks activism has a long and bright future.
On ConAgra: He's trimmed his position in ConAgra a bit, but commended management on turning the business around and making a lot of changes (spinoffs, cost savings, etc) and Rosenstein thinks this one has "years to go" with a collection of attractive brands that can grow at double digit earnings growth and the potential for pruning its portfolio and making attractive acquisitions.
He doesn't think they need to increase their dividend as they're already buying back stock.
JANA also reduced its stake in Walgreen's (WBA) and he thinks it's a great company. He was on the board for a while but stepped off. He thinks they've accomplished a 'tremendous' amount.
For more from prominent investors, head to David Tepper's recent interview, as well as Keith Meister's thesis on YUM.
Tuesday, June 7, 2016
JANA Partners Slightly Trims ConAgra Foods Stake
Barry Rosenstein's activist hedge fund firm JANA Partners recently filed an amended 13D with the SEC regarding its position in ConAgra Foods (CAG). Per the filing, JANA now owns 6.3% of CAG with over 27.38 million shares of exposure (including call options to purchase 6 million shares).
If you back out the 6 million shares via call options (which JANA disclosed as a new position in the first quarter), you're left with 21.38 million shares.
Compare this with the 21.53 million shares JANA owned at the end of the first quarter, and this means they've slightly reduced their net exposure to the name.
The filing was made due to activity on May 27th and the purpose of transaction notes that they "entered into an agreement with the Issuer that amends and restates the Cooperation Agreement (the "Amended and Restated Cooperation Agreement"). The full text of the Amended and Restated Cooperation Agreement is included as Exhibit D to this Amendment No. 2 by reference to Exhibit 99.1 of the Issuer's Current Report on Form 8-K filed with the SEC on May 31, 2016 (the "Form 8-K") and is incorporated by reference herein.
For more on this fund, we recently highlighted that JANA reduced its Walgreens Boots Alliance position.
Per Google Finance, ConAgra Foods "operates as a packaged food company. The Company offers branded and private branded food to households, as well as commercial foods, which serves various restaurants and foodservice operations. The Company operates in three segments: Consumer Foods, Commercial Foods and Private Brands. Its brands include Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Peter Pan, Reddi-wip, Slim Jim and Snack Pack, among others. The Company sells its products under private brand labels in grocery, convenience, mass merchandise, club and drug stores. Additionally, ConAgra Foods supplies frozen potato and sweet potato products, as well as other vegetable, spice, bakery, and grain products, to restaurants, commercial and foodservice customers. It has international manufacturing facilities in Argentina, Mexico and interests in ownership of international manufacturing facilities in India and Mexico.."
Monday, June 22, 2015
JANA Partners Goes Activist on ConAgra Foods
Barry Rosenstein's activist hedge fund JANA Partners has filed a 13D on shares of ConAgra Foods (CAG). Per the filing, JANA now owns 7.2% of the company with over 30.86 million shares.
This is a newly disclosed stake for the fund as they did not own any shares at the end of Q1. JANA's position includes options to purchase 19 million shares. They bought July 2015 $33 and $34 calls and August '15 $34 calls.
The filing indicates that JANA "believes that the Issuer has significantly underperformed in shareholder value creation" and singled out the acquisition of Ralcorp.
JANA is prepared to nominate 3 members to the board: Rosenstein, Mr. Lawrence (former CFO of Unilever and General Mills), and Ms. Dietz (former CMO of Safeway). JANA was out buying shares in April, May, and June at prices between $36.09 and 38.99
For more from this firm, head to Barry Rosenstein's recent appearance on Wall Street Week.
Per Google Finance, ConAgra Foods is a "packaged food company. The Company provides branded and private branded food in households, as well as commercial foods business serving restaurants and foodservice operations. The Company’s brands include Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Peter Pan, Reddi-wip, Slim Jim and Snack Pack, among others."
