Barron’s recently ran a bullish story on Hanesbrands where they argued the stock could advance by 25%. The piece references extensively a recent report published by Boyar Research. Boyar was kind enough to provide our readers with this report as well as additional reports on Legg Mason and Liberty Global.
To receive these free reports, please visit:
http://boyarresearch.com/MF-Apr-2017
Boyar Research takes a private equity approach to public market investing by identifying securities trading at a substantial discount to their estimate of intrinsic or private market value. Since 2009, the average return for each company profiled in their flagship publication Asset Analysis Focus has been 83.7%, compared with an average return of 53.3% for the S&P 500.*
Hanesbrands Inc. (HBI)
- Hanesbrands, the world’s largest basic apparel company, boasts a portfolio of first-rate brands that hold the #1 or #2 market share position in underwear, intimate apparel, hosiery, and active wear in 12 countries.
- Several issues have weighed on HBI shares over the past two years, culminating in a sharp sell-off in the stock after the Company reported poor 4Q 2016 results. HBI’s innerwear segment, which comprises 43% of sales and nearly 60% of operating profit, exhibited surprising weakness during that quarter due to soft retail traffic not being fully offset by their rapidly growing online sales. However, we do not believe that this recent weakness represents a secular shift in the purchasing frequency of HBI’s products. Rather, we believe this is a temporary situation caused by a shift of customer purchasing behavior from brick-and-mortar establishments to online distribution channels.
- To see Boyar’s estimate of intrinsic value for HBI and to receive their complimentary full report, please click here
Legg Mason, Inc. (LM)
- Legg Mason, Inc. is a formidable player within the asset management industry, possessing impressive scale (~$710 billion of AUM) and a diverse line of well-established products catering to a full range of investment styles and asset classes.
- Approximately 70% of LM’s strategies are outperforming benchmarks from one-year and three-year perspectives, and the figure for the five-year and ten-year perspectives exceeds 80%.
- The Company has also reduced its shares outstanding by 40% and has raised its dividend seven times since 2010. However, LM shares have failed to achieve significant outperformance despite the Company’s strategic advances. In large part, this likely reflects the difficult fundamentals currently impacting the actively managed fund sector.
- LM is trading at approximately 0.7% of AUM, a substantial discount from how comparable firms have historically been valued in transactions.
- To see Boyar’s estimate of intrinsic value for LM and to receive their full report, please click here
Liberty Global plc (LBTYA / LBTYK)
- Liberty Global is the largest European cable systems operator.
- Liberty Global is underpenetrated in its existing network and has plans to expand its footprint by 6-7 million homes in the coming years.
- Liberty Global shares have de-rated to ~9x EV/OCF, below their longer-term average of ~10x—offering a bargain, in our view, for a high-margin, recession-resistant business best positioned to capitalize on the secular growth in internet data usage.
- To see Boyar’s estimate of intrinsic value for LBTYK and to receive their full report, please click here
Tuesday, April 25, 2017
Boyar Research Reports on Hanesbrands, Legg Mason, and Liberty Global
Wednesday, November 16, 2016
What We're Reading ~ 11/16/16
Thinking strategically: the competitive edge in business, politics, and everyday life [Dixit]
Is value investing broken? [Gannon on Investing]
Understanding the art of doing nothing [Pragmatic Capitalism]
India's demonetization - what's next? [Marginal Revolution]
How to find the most persistently profitable companies [Gannon on Investing]
How investors develop bad habits [A Wealth of Common Sense]
On overconfidence and the scout mindset [Abnormal Returns]
A pitch on American Tower (AMT) [Broad Run]
Inside Intel's race to build a new reality [Techcrunch]
In-depth interview with Liberty's John Malone [CNBC]
Interview with Michael Mauboussin [Motley Fool]
JD.com's Richard Liu takes on Alibaba in cutthroat contest for Chinese consumers [Forbes]
Guide to stocks potentially impacted by a Trump presidency [StreetInsider]
How your brain decides without you [Nautilus]
Wednesday, January 13, 2016
What We're Reading ~ 1/13/16
George Soros: it's the 2008 crisis all over again [CNBC]
Rare interview with Michael Burry (of The Big Short fame) [NYMag]
Daniel Kahneman on intuition and loss aversion [Farnam Street]
Barron's top 10 stock picks for 2016 [Barrons]
The 2016 Crossing Wall St buy list [Crossing Wall Street]
On Amazon's entrance into India [Fortune]
Amazon and world domination [Value Venture]
A painful year for contrarian trades [A Wealth of Common Sense]
The difference between patience and stubbornness [Fool]
In Silicon Valley now, it's almost always winner takes all [New Yorker]
Baidu's Li says investors don't get China's coming internet boom [Bloomberg]
The digital future of consumer-packaged goods companies [McKinsey]
50 unfortunate truths about investing [Morgan Housel]
Cordcutting: myth or reality? [Value Seeker]
How FICO became outdated [PYMNTS]
Meet the 'new' lower margin, lower quality Chipotle [HVST]
Current case for Liberty Global (LBTYA/K) [Jnvestor]
Nearly 95% of young renters want to buy, but many say they can't afford it [WSJ]
Wednesday, July 22, 2015
What We're Reading ~ 7/22/15
The Emotionally Intelligent Investor [Ravee Mehta]
The smartest man is wild about innovation [Byron Wien]
Decisions under uncertainty [Farnam Street]
What's the biggest risk right now? [A Wealth of Common Sense]
A breakdown of John Malone's empire [Jnvestor]
Video on aluminum and aerospace industry outlook [YouTube]
The supply of equities may soon stop shrinking [Economist]
For eBay, a new chapter begins [Fortune]
A look at Vitec Software Group [Frenzel & Herzing]
Deep analysis on Deere & Co [HVST]
Montier goes to highest cash level since 2008 [FINalternatives]
Are GMOs safe? Yes. The case against them is full of lies [Slate]
Jet.com launches new e-commerce model [USAToday]
Bidding wars return to home market [WSJ]
Capitalist soul rises in Ho Chi Minh City [NYTimes]
On Google's return of Omid Kordestani [Recode]
Tuesday, October 28, 2014
Aaron Cowen's Long Burger King & Liberty Global: Capitalize For Kids Sohn Canada Conference
We're posting up notes from the Capitalize For Kids Sohn Canada conference that just took place. Next up is Aaron Cowen of Suvretta Capital who pitched long Burger King Worldwide (BKW) and long Liberty Global (LBTYA / LBTYK).
Aaron Cowen's Sohn Canada Presentation
Pitched LONG Burger King Worldwide (BKW). Believes the stock has bond like features and can generate $2/share FCF. Mentioned Tim Horton’s deal was a huge “game changer”, especially considering the backers, 3G Capital. Can cut lots of costs within Tim Horton’s and turn it into a more profitability franchiser (similar to early days at BK following 3G deal). Thinks there is a possibility for another deal, a pizza chain perhaps.
Next, pitched LONG Liberty Global (LBTYA / LBTYK). An amazing compounder with legendary management team and board (John Malone). Experiencing topline growth and has the German asset upside. Should trade at a 7.5 yield, resulting in a price target of $60.
Be sure to check out the rest of the presentations from Capitalize For Kids Sohn Canada here.
Wednesday, July 30, 2014
What We're Reading ~ Analytical Links 7/30/14
Bill Gates calls this "the best business book I've ever read" [John Brooks]
6 signs of a good investment process [Clear Eyes Investing]
Rethinking buybacks [CFO]
On Demand Media and Rightside [Buyside Notes]
Why media mergers limit more than competition [NYTimes]
Interview with Liberty Global's Mike Fries & John Malone [WSJ]
On the Liberty Broadband spinoff [Glenn Chan]
Online corporate finance and valuation classes [Aswath Damodaran]
Presentation on Visa: great company at fair price [ValueWalk]
A pitch on Future Bright Holdings [Red Corner]
Investors rush into student loans [CNN Money]
Wednesday, May 14, 2014
What We're Reading ~ Analytical Links 5/14/14
Dream Big: on the Brazilian Trio behind 3G Capital [Amazon]
On investment process [Dasan]
Predicting the present with Google Trends [Berkeley]
A look at Yahoo: a puzzle, a mystery and an enigma [Aswath Damodaran]
The unlikely ascent of Jack Ma, Alibaba's founder [NYTimes]
Recession-baby millennials shun stocks after US slump [Bloomberg]
Families are dining out a lot less [RestFinance]
The future of monetising television [TheGuardian]
What happens when the cable TV money dries up? [Sports on Earth]
Africa growth outlook [WEForum]
Macau jackpot turns to bust for stock investors amid rout [Bloomberg]
Murdoch's $14 billion TV plan sets up showdown with Malone [Bloomberg]
AT&T's deal strategy raises questions [Dealbook]
How dumb are fund investors? [WSJ]
Post Office says it lost $1.9 billion in quarter [NYTimes]
Tuesday, May 6, 2014
Philippe Laffont Long Liberty Global: Sohn Conference Presentation
We're posting up notes from the Sohn Investment Conference in New
York, produced in partnership with Bloomberg LINK. Next up is Philippe Laffont of Coatue Management who pitched Liberty Global (LBTYA/K) long.
Philippe Laffont's Sohn Conference Presentation
Tech Media Telecom investor. Was at Tiger before founding Coatue.
IDEA1: Long Liberty Global. LBTYA. Similar pitch to last time, which was Virgin Media, which was bought by Liberty Global. (He's owned LBTYA for a while now).
Says cable is best infrastructure for high-speed broadband. Says Fiber is too expensive and wireless is too hard because you need expensive spectrum. NFLX is just rolling out in Germany, France. It is 30% of the broadband in the US, and this trend will occur in Europe next.
Comments on merger activity in cable and telecom: he expects more consolidation. TWC and CMCSA happening. Sprint and T-mobile? DirectTV and AT&T?
Liberty Global could be bought by Vodafone. AT&T could buy Vodafone and Liberty Global. CMCSA could buy Liberty Global. Liberty Global could add new assets. So LBTYA could double from $40 to $90 by 2018.
Be sure to check out the rest of the presentations from the 2014 Sohn Investment Conference.
Thursday, January 30, 2014
East Coast's Q4 Letter: Understanding the Mispricing of an Investment
Chris Begg's East Coast Asset Management is out with its 2013 year-end letter. The Q4 missive walks further down their investment checklist. Last quarter, we highlighted their letter on competitive advantage and this time they focus on understanding the mispricing of an investment
Through use of checklists, they categorize investment opportunities and identify the bull/bear cases, potential catalysts, long-term fundamentals, various sentiments, and more in order to understand what exactly is driving the mispricing.
This ties in with their concept of 'investment longitude' in that they want to understand the critical data points that truly drive the business (and the stock). The letter below walks you through how to do so.
In terms of how East Coast has been positioning themselves, they've been shifting more of their portfolio toward 'transformation' plays, or companies benefiting from secular tailwinds. Begg's letter also details how they purchased a European cable business in Q4. While they don't specifically identify the position, it certainly sounds like John Malone's Liberty Global (LBTYA/LBTYK).
Embedded below is East Coast's Q4 letter: Navigating Beyond the Pillars:
For more on their investment checklists, head to East Coast's letter on competitive advantage.
Thursday, October 31, 2013
What We're Reading ~ Analytical Links 10/31/13
A look at TransDigm Group (TDG) [Brooklyn Investor]
Repeatedly burned, short sellers avoid momentum stocks [Reuters]
Liberty Global: On the European empire John Malone's built [BusinessWeek]
Michael Lewis on the next crisis [BusinessWeek]
For once mighty Sears, pictures of decay [Dealbook]
Amazon and the profitless business model fallacy [Eugene Wei]
A write-up on Emerald Oil (EOX) [Dedwardssays]
Trucking companies inching toward using natural gas as fuel [WSJ]
The new reality of international bonds [Vanguard]
Time to buy former retailing darling Tesco [Institutional Investor]
GlaxoSmithKline's China conundrum [FT]
Moats widen for railroads & luxury goods [Morningstar]
Eastman Chemical: specialty chemical for commodity price [Seeking Alpha]
Current tech euphoria in Silicon Valley isn't exactly like 1999 [WSJ]
Wednesday, June 19, 2013
What We're Reading ~ Analytical Links 6/19/13
Timeless investing wisdom from great hedge fund managers [The Art of Value Investing]
Oakmark's Bill Nygren on Google (GOOG) [Reformed Broker]
Are higher mortgage rates bad for the economy? [ValuePlays]
Overcoming your negativity bias [Dealbook]
James Montier: doing nothing not a bad idea in this market [InvestmentNews]
Pairs trading: performance of a relative-value arbitrage rule [Turnkey Analyst]
A framework to analyze utility stocks [Graham Disciple]
3 things Bill Gates has learned from Warren Buffett [Bill Gates]
Time Warner (TWX) looks fully priced now [Barrons]
On a potential Kabel Deutschland/Liberty Global connection [FT]
On behavioral portfolio management [CFA]
Why Netflix (NFLX) is producing original content [Felix Salmon]
As interest rates rise, banks face new stress tests [Fortune]
US regulator says Deutsche Bank (DB) horribly undercapitalized [Reuters]
Barnes & Noble (BKS) keeps slashing Nook tablet prices [CNNMoney]
Google (GOOG) takes home half of worldwide mobile internet ad revenues [eMarketer]
The Physics of Wall Street: A brief history of predicting the unpredictable [Seeking Alpha]
Wednesday, April 17, 2013
What We're Reading ~ Analytical Links 4/17/13
A new site aggregating conference call transcripts [ConferenceCallTranscripts.org]
Intel (INTC): Anatomy of a tech value trap [Reformed Broker]
Why equity long/short investing is not dead [HFIntelligence]
Sticking to a plan in the face of emotional volatility [Abnormal Returns]
Rare interview with Liberty Media's (LMCA) John Malone [CNBC]
Jeremy Grantham on how to play resource scarcity [Advisor.ca]
Aereo has TV networks circling the wagons [NYTimes]
The death of value investing [Business Insider]
Thermo Fisher (TMO) nears deal for Life Technologies (LIFE) [Reuters]
On Dish Network's (DISH) bid for Sprint Nextel (S) [Bloomberg]
Interview with Markel's (MKL) Tom Gayner [GuruFocus]
Diabetes in Mexico: eating themselves to death [The Economist]
Top 5 websites capturing larger share of real estate traffic [Inman]
As big investors emerge, Bitcoin gets ready for close-up [Dealbook]
Wednesday, April 10, 2013
Third Point Short Japanese Yen, Long Liberty Global & International Paper: Q1 Letter 2013
Dan Loeb's hedge fund Third Point has released its Q1 2013 letter to investors. In it, we see that Third Point finished the first quarter up 9%. There were three main takeaways from Third Point's activity: a short position in the Japanese Yen, as well as long positions in Liberty Global (LBTYA) and International Paper (IP).
Liberty Global (LBTYA)
Loeb's firm bought when shares swooned in Q1 after announcing a takeover of Virgin Media (VMED), a company Third Point also has a large stake in. Third Point likes the company's impending buyback and sees "Liberty's strategic value as the primary alternative to the incumbent telecom operator's fixed infrastructure in its markets is overlooked."
Third Point also thinks shares could compound at around 20% per year after closing of the VMED deal. As of the end of 2012, numerous other hedgies had stakes in LBTYA including Coatue Management, Blue Ridge Capital, Eton Park Capital, and Maverick Capital.
International Paper (IP)
They like the company's pricing power in North American Containerboard and see numerous catalysts for the company, including finding out whether the industry's price increase has been sanctioned. We also recently highlighted that Senator Investment Group added to their IP position.
Third Point has also been short the Japanese Yen, in what has been almost a consensus hedge fund trade recently. You can read the rationale behind their position in Third Point's Q1 2013 investor letter, embedded below:
For more from this hedge fund manager, be sure to also check out Dan Loeb's recommended reading list.
