Week in Review: Thursday Sept. 22, 2022
Marco
Feds raised interest rates again by 75 basis points (bps); expect them to do so for the foreseeable future until inflation is 2%.
Because market are indifferent being slightly down; it’s troublesome given that our optionality indicators show high yield income as the far more opportunistic area. “Bond King” Jefferey Gundlach at Doubleline has great insights
Weekly Individual Research Notes
DYNR - DynaResource
Is a holding company, owning a Gold/Silver mining company in Mexico. The company reminds me of the pyramiding holding company structures Benjamin Graham discussed in his 2nd edition of Security Analysis. Add on the complex capital structure with multiple convertible bonds, preferred stock and warrants. These alone made the investment go to the reject pile. Not due to the operations but the capital structure.
http://dynaresource.com
THNCF - Thinkific Labs Inc.
This was an interesting find in my idea generation process. I was surprised at these numbers. A Canadian company with very interesting economics.
Update: DXC Technology Back-of-the-Envelope LBO Valuation Assumption
And Subscribe so you don’t miss out. I discussed DXC previously
Most recent catalyzing news:
DXC Technology engages bankers after takeover interest - Bloomberg News
Sept 21 (Reuters) - DXC Technology Co is working with financial advisers after receiving takeover interest from at least one private equity firm, Bloomberg News reported on Wednesday, citing people familiar with the matter…
PE firms have stepped up deal making, taking advantage of the fall in valuations of technology companies due to worries over rising interest rates and an economic slowdown.
Vista Equity Partners this week offered to buy software security firm KnowBe4 Inc.
The report comes over a year after DXC ended merger talks with French IT consulting group Atos SE, which had made a $10 billion offer for the company.
So how would an acquirer be looking at DXC. Our quick and dirty back-of-the-envelope estimate shows IRR at 30% if the acquirer were to pay $58 a share.