Thesis bottom line iRobot (IRBT or ‘company’) is a leader in the Robot Vacuum Cleaner (RVC) space. Economic moats include Consumer Lock-In, Patents and a Learning Curve edge - strengthened by strategic positioning. Chip shortages, high tariff and material costs - all real concerns - have spooked investors and led to a 60% drawdown in … Continue reading Investment Memo | iRobot Corporation (IRBT)
Video presentation here Slides below. humansoft-holdings-kuwaitDownload Thesis bottomline HS has had a stellar decade owing largely to being in the right place at the right time. Generous scholarship payouts, a large government-lease property and under-capacity in the market led to impressive, profitable growth. The luck has now run out. Today the market is justifiably unconvinced … Continue reading Humansoft Holdings (Kuwait) | Luck is no strategy
Back in June 2019, a deep-dive into Integrated Holding (IHC) indicated a so-so business, tagged with a price forecasting a steep down-cycle for the upcoming 3-5 years. We did what we always do. We tore through public filings, financials, searched for strategic and economic strengths, read global industry reports on heavy-equipment rentals, and sent management … Continue reading Analyst Note | Why we passed on Integrated Holding (IHC)
Home Depot is the world's largest home improvement specialty retailer, operating nearly 2,300 warehouse-format stores offering more than 30,000 products in store and 1 million products online in the United States, Canada, and Mexico. Its stores offer numerous building materials, home improvement products, lawn and garden products, and decor products and provide various services, including home improvement installation services and tool and equipment rentals. The acquisition of distributor Interline Brands in 2015 allowed Home Depot to enter the maintenance, repair, and operations business, which is expected to expand with the pending acquisition of HD Supply. The tie-up with Company Store also brought textile exposure to Home Depot's lineup.
Applied Materials is the world's largest supplier of semiconductor manufacturing equipment, providing materials engineering solutions to help make nearly every chip in the world. The firm's systems are used in nearly every major process step with the exception of lithography. Key tools include those for chemical and physical vapor deposition, etching, chemical mechanical polishing, wafer- and reticle-inspection, critical dimension measurement, and defect-inspection scanning electron microscopes.
Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.
Veeva's Economic Moats Switching Costs Imagine a pharma company trying to change platforms…Data migration from old to new. Carries risks. May be time consuming. Interrupt workflow.Customization of the new solution to the business.Training of staff.This is both expensive and risky. Meaning once a pharma business has installed Veeva into their business, they need extremely compelling … Continue reading Veeva Systems Inc. (VEEV)
Surgery as a means to investigate and treat pathology dates back many millennia and continues to be an essential branch of medicine. There is widespread agreement on the benefits of robot-assisted surgery (RAS), driving a growing demand from hospitals worldwide. RAS’s complex and life-critical nature yields a winner-take-most landscape. The clear leader in this space is Intuitive Surgical - and has been over the past two decades.
MasterCard is the second-largest e-payment network company helping to authorize, clear and settle a transaction. It is the middle-man, moving money to and fro from one bank to the other. MasterCard itself does not loan the money to the consumer to buy goods on credit, nor does it physically sell the credit cards.
At $23.50, PETS is undervalued and we recommend a BUY. A combination of short-term guidance misfires and PetSmart’s acquisition of Chewy has caused market-wide panic, float short % to skyrocket, and PETS’ market cap to halve over the past 9 months. A price correction was deserved but the market has overreacted. PETS’ price-implied-expectations (discussed later in detail) indicate a contraction in sales growth and margins that defy rationality.