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Eric Schleien discusses value investing, rational investment analysis, and vital mental models.
Episodes
Friday Oct 23, 2020
Friday Oct 23, 2020
Summary
In this episode of The Intelligent Investing Podcast, I sit down with Luis Carlos Sánchez. Mr. Sánchez is has a background in commercial law and is an avid net-net investor.
If you are interested in Net Net Investing, I would also recommend listening to a previous episode with the Founder of Net Net Hunter, Evan Bleker.
You can also watch Episode #122 of The Intelligent Investing Podcast on YouTube.
Net Net Stocks Mentioned
In this episode, we discuss three different net net stocks. Two of the companies either via myself or my clients are also shareholders in. One of the companies is a stock that Luis recently sold but it makes an interesting net net stock case study.
Trilogiq SA (Paris: ALTRI)
Trilogiq SA is a company based in France that specializes in the production and design of tubular structures for production lines. The company’s products and services are used to reduce non-productive areas, decrease operator movements, and optimize ergonomics, costs, and production times. It's a relatively simple and straightforward business.
This makes an interesting net net case study due to the fact that a few years ago the now CEO (who is also the founder) brought in a new CEO to help grow the company. The business, in turn, took on debt to start new projects and they didn't exactly work out too well. During this attempted transition, some value funds that like "strong-moat" businesses started buying the stock.
The Founder eventually took back the role of the CEO position in which he pretty much has absolute authority on the direction of the company being the largest shareholder at over 75% ownership in the business. During the past year, the Founder/CEO, Eric Courtin, started shutting down the money-losing projects and bringing the company back closer to its roots once again. They are also paying down debt and sticking to what they do best.
Support.com
We also highlighted Support.com (NASDAQ: SPRT) as it is another interesting situation. However, the company is much less compelling of an investment as it was back a few months ago pre-COVID. The company mainly focuses on online tech support which has been helped by COVID lockdowns.
Ref Holdings
We also discussed REF Holdings Limited (HKSE: 1631). The company provides ancillary services such as the provision of conference room facilities and financial printing services for the financial sector in Hong Kong. Ref offers a wide range of financial printing services, from typesetting, proofreading, translation, design, printing, web submitting, newspaper placement to distribution. Luis bought the stock below net cash and recently sold out.
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