Whitney Tilson recently launched a new investment conference focused on short selling called the Kase Learning Short Selling Conference. They've released some videos of pitches from the presentations and we've aggregated them here along with notes from each talk if you just want a quick summary.
Click each link below to go to the presentation.
Kase Learning Short Selling Conference Presentations 2018
- Sahm Adrangi (Kerrisdale Capital): On ad fraud and Quinstreet (QNST)
- Mark Spiegel (Stanphyl Capital): Short Tesla (TSLA)
- Gabriel Grego (Quintessential Capital): Short Folli Follie
- Jillian McIntyre (221B Capital): Short Intelsat (I)
- Berna Barshay (Viola Capital): Short Ralph Lauren (RL)
- Enrique Abeyta: Short Anheuser Busch InBev (BUD)
- Chris Brown (Aristides Capital): Short Energous (WATT)
- Asher Jacobs & Jade Hu (Columbia MBAs): Short Stericycle (SRCL)
Monday, June 4, 2018
Kase Learning Short Selling Conference Presentations 2018
Jillian McIntyre's Short Intelsat Presentation: Kase Learning Conference
We're posting up a series of presentations from the recent Kase Learning Short Selling Conference. Next up is Jillian McIntyre of 221B Capital who pitched a short of Intelsat (I). She runs a fundamental long/short equity fund, typically running 20% net short, typically focuses companies with poor corporate governance (Germany, UK, South Africa, Australia). Previously worked with Sir Chris Hohn's TCI Fund.
Jillian McIntyre's Presentation: Short Intelsat
- 50% downside in her opinion, only 7% short interest. $14bn of debt, $1bn run-rate of interest every year, negative cashflow
- Believes company is ripe for technology disruption and has a bad business model; needs capital ASAP
- Company is in satellite communications, provides signal broadcast to major networks, media companies etc. Mainly exposure to Latin America and Africa. Thinks there's some similarities to SunEdison (which they pitched back in 2015 which went bankrupt): levels of indebtedness & bad business model
- The recent hype surrounding 5G and the big spectrum auction in November has led to irrational exuberance as Intelsat is up almost 300% this year. Lot of hype around the potential for C band spectrum. Even if it's allowed by FCC, could take over a year to start to monetize it. She thinks the company will see disruption in its ancient satellite model. Lower-orbit satellites will be launched and are better and cheaper than Intelsat's much higher satellites. Lots of hype also around potential with 'OneWeb'
- Co has very complex debt structure and is a serial re-structurer: they think it breached covenants and will need to raise $400-500 million and worst case $1.5-2 bn. Don't think they have access to new revolving credit facilities. Thinks they have aggressive accounting regarding bad debt provision and amortization rates and reliance on future revenue
Embedded below is the video of Jillian McIntyre's presentation:
Be sure to check out the rest of the presentations from the Kase Learning Short Selling Conference.
