Chris Waller
@HiddenGemsInves
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Looking for 'hidden gems' among small cap value stocks. Founder at Hidden Gems Investing. Founder & PM at Plural Investing. Posts are not investment advice.
Joined November 2020
What is Hidden Gems Investing?. We believe that in-depth primary research like speaking to 20 industry experts can uncover ‘hidden gems’ among small cap value stocks. We write up our findings to Hidden Gems Investing.
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We just published a 35 page Special Report on Seaport Entertainment ($SEG), a company that owns properties in the heart of New York overlooking the Brooklyn Bridge. Read it at Hidden Gems Investing (link in my profile). Seaport is a recent spinoff from Howard Hughes ($HHH) and
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Warren Buffett says that “Over time, the skill with which a company’s managers allocate capital has an enormous impact on the enterprise’s value.”. Do you want to discover an excellent capital allocator before he is famous?. This thread introduces Dustin Haw, CEO of TerraVest.
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Seaport Entertainment is a hidden gem. But it does not look like it at first glance. $SEG was spun out of Howard Hughes $HHH in July and is a set of complex and loss-making properties in Manhattan and Las Vegas that has dragged down Howard Hughes’ stock for years. It was likely
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Plural Investing's Q4/2024 letter is now available for accredited investors here: Our quarterly letter profiles Jet2, Watches of Switzerland, and Seaport Entertainment. ➡️ Jet2 trades for 7x P/FCF despite having net cash, the best competitive position in.
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Pier 17 alone could be worth more than Seaport Entertainment $SEG 's market cap. In this clip I explain why. My full 1hr podcast with @manualofideas.is available for free at the link in the first comment. Pier 17 make money in 3 ways:. 1. The rooftop concert venue.2. Three
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What makes $SEG a hidden gem?. ➡️ $HHH invested $1.5bn into the company .➡️ It trades for just $340mm post-spin!. I did a podcast with @manualofideas for an hour, laying out what you need to know. Here are the first minutes of our conversation. You can watch the full podcast
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Did you miss our update on TerraVest, Watches of Switzerland, and Seaport Entertainment?. Take a look at Hidden Gems Investing (link in the first comment). $TVK.TO $WOSG $SEG
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Our monthly update is released!. Take a look if you're interested in TerraVest, Seaport Entertainment, or Watches of Switzerland. (link in first comment). $TVK.TO $WOSG.L $SEG
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How cheap are UK stocks?. ➡️UK stocks trade on 11x forward P/E.➡️US stocks trade on 22.5x forward P/E . When adjusted for small caps and ‘value’ stocks, many UK small cap value companies look incredibly cheap. Chart from @woodford
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Hidden Gems Investing will be covering TerraVest, Jet2, Kyndryl, and Macfarlane in our first Monthly Update, published tomorrow at 11am ET. Sign up now to receive a copy! (link in my bio and image below). $TVK.TO $KD
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What questions about $XPEL would you most want answered/investigated if I wrote the stock up?. ⬇️ Let me know in the comments ⬇️. Mine are:. 1. A survey of installers to quantify why they really choose XPEL. What % cite referrals/brand, the software, product, culture etc. 2.
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The Tin Building lost $42mm last year. That makes it Seaport Entertainment's most problematic property ( $SEG ).
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How cheap are UK stocks?. THREAD 🧵. With seemingly continuous bad economic news coming out of the UK it's worth noting that:. ✅ UK stocks trade on 11x forward P/E.✅ US stocks trade on 22.5x forward P/E. When adjusted for small caps and ‘value’ stocks, many UK small cap value
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I was recently interviewed by Graham & Doddsville. Take a look if you're interested in $SEG, $WOSG, or other great interviews and stock writeups.
Out now! The 50th edition of Graham & Doddsville .
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What can Seaport Entertainment learn from Eataly?. Eataly is a highly success food hall & dining experience. It's Flatiron location is one of the most successful food halls in New York. 1/ $SEG
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Two positive updates from Seaport Entertainment. ✅ Pier 17 will be adding a dining/nightclub experience called GITANO, which by my estimates will take up ~10% of the convertible space. Adding nightlife should broaden out the offering at the Pier as the area is currently empty
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Progress at Seaport Entertainment $SEG. Changes at SEG are going unnoticed. Learn more in new our article at Hidden Gems Investing (link in my bio). At Pier 17:. 1. Extending the rooftop concert series year-round. 2. Redeveloping 1/3 of the ground floor. 3. Signing a lease with
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Progress at Seaport Entertainment $SEG. At 11am ET tomorrow we will publish an article on changes at SEG that are going unnoticed. Sign up at Hidden Gems Investing to make sure you receive it (link in my bio). Progress at Pier 17 includes:. 1. Extending the rooftop concert
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Our first Monthly Update has been released!. Are you interested in Jet2, TerraVest, Kyndryl, or Macfarlane?. Go to Hidden Gems Investing and scroll down to 'Recent Posts'. (Link below and in my bio). $TVK.TO $KD
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I discussed Watches of Switzerland for an hour with @AndrewRangeley recently. View the full podcast and our 35 page Special Report at Hidden Gems Investing (link below). $WOSG $WOSG.L
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Our first Monthly Update has been released! . Are you interested in Jet2, TerraVest, Kyndryl, or Macfarlane? . Go to Hidden Gems Investing and scroll down to 'Recent Posts'. (Link below and in my bio). $TVK.TO $KD
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12. At only 40 years old, Haw has a long runway to compound. To learn more about what makes TerraVest a ‘hidden gem’, check out our FREE report at Hidden Gems Investing. We interviewed 18 sources and the report is 35 pages, beginning with a 1 page summary. Link in my bio.
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I was recently interviewed by Graham & Doddsville. Take a look if you're interested in $SEG, $WOSG, or other great interviews and stock writeups.
Out now! The 50th edition of Graham & Doddsville .
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#Jet2 is a hidden gem. The stock trades on 7.5x P/E for a company with substantial net cash, double digit growth, the best management team in the business, and the industry leading competitive position. We wrote a deep dive two years ago which is still relevant. You can find it
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To learn more, view my thread on $SEG here:. 3/5.
Seaport Entertainment is a hidden gem. But it does not look like it at first glance. $SEG was spun out of Howard Hughes $HHH in July and is a set of complex and loss-making properties in Manhattan and Las Vegas that has dragged down Howard Hughes’ stock for years. It was likely
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Did you miss our 35 page report on Seaport Entertainment?. Read it at Hidden Gems Investing (link below and in my bio). We spoke with 22 industry sources and hope you enjoy the report!. Our newsletter just launched, but includes previous reports on TerraVest, Watches of
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Both Eataly Soho and the Tin Building are underperforming, but changes are possible. To learn how, read our 35 page Special Report at Hidden Gems Investing (link in my bio). We spoke with 22 industry sources and hope you enjoy the report!
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8. Unlike many CEOs, Haw focuses on generating returns on capital when making decisions, rather than chasing growth or building empires. Several of Terravest's businesses are in decline. Haw is not in denial and not investing capital at bad returns to force growth. Instead, he.
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Go to Hidden Gems Investing to read our 35-page report on $SEG. Link in my bio and post 2/5 in this thread. The report was based on interviews with 20 sources. 4/5
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2. Dustin Haw is CEO of TerraVest $TVK.TO. The stock has compounded at 35% p.a. for a decade.
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Overall, we see significant downside protection with the valuations for 250 Water St and the Fulton Market Building, and substantial potential upside with many properties. This makes $SEG an asymmetric risk/reward opportunity. The Bull case is that we could be at the beginning
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7. TerraVest follows a roll-up strategy of acquiring, restructuring, and operating businesses that are generally mom & pops across:. · Storage tanks and pressure vessels (est. 65% of revenues).· Boilers and furnaces (~15%).· Oil & gas equipment (~15%). Haw makes acquisition.
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9. Haw has fostered a culture that is highly entrepreneurial and cost conscious. The company does not pay for a corporate headquarters, nice presentations or investor relations staff - Haw answers investor inquires himself.
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Over 1,500 people have subscribed to Hidden Gems Investing, just 3 weeks after we launched!. Thank you for your support!! 🥂. Consider upgrading to paid to receive our best content. An annual membership is just $299 and subscribers before Jan 1 will be protected against price
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6. Haw is a rare combination of being both an excellent operator and capital allocator. As one source put it: “Unlike most people in finance he understands how to make things. The combination of understanding how the product is made and capital allocation is a deadly force in.
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10. Haw is someone of high integrity. From both our interactions with him and interviews with our sources, he is a partner you can trust.
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@InvestSpecial @ToffCap @ideahive @ragingbullcap @david_katunaric @augustusville Don’t forget @HiddenGemsInves (Small-cap Value), launched just two weeks ago!.
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The company has two properties which have performed well and could be worth most of the market cap today, giving us significant downside protection. The first is 250 Water St, a block of land that is fully entitled with 421a tax credits for the construction of a 27 story
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Getting the Tin Building to profitability will require a lot more than adjusting these spaces, but we think it can be done. To learn how, read our 35 page Special Report at Hidden Gems Investing (link in my bio). We spoke with 22 industry sources and hope you enjoy the report!
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Watch me discuss Watches of Switzerland with.@AndrewRangeley on Yet Another Value Podcast. Our 35 page Special Report on the company is available on Hidden Gems Investing. (Link in my bio) . $WOSG $WOSG.L.
Chris Waller discusses why he thinks the market misunderstands the strength / depth of the Rolex + $WOSG relationship
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These areas make up a large amount of the space, and are generating very limited revenues. The seaport is a destination, and customers don't want to carry food or bags for the rest of their trip. Putting grocery and retail in this location was a mistake. We suspect new
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To learn more, go to Hidden Gems Investing (link in my bio). We write up 35-page reports on small cap value stocks after interviewing 20 sources, and provide updates on an ongoing basis while attending industry events.
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For a detailed analysis, check out my thread below.
Seaport Entertainment is a hidden gem. But it does not look like it at first glance. $SEG was spun out of Howard Hughes $HHH in July and is a set of complex and loss-making properties in Manhattan and Las Vegas that has dragged down Howard Hughes’ stock for years. It was likely
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The Tin Building food hall and market is by far the most problematic property, losing $43mm in 2023. However, similar food halls in Manhattan are profitable and we see a viable path for the Tin Building to do the same.
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Our latest report is on Seaport Entertainment. Seaport is a spin-off from Howard Hughes. Howard Hughes invested $1.5bn into Seaport. It trades for just $380mm. Our report is now available and was based on interviews with 22 sources. The report begins with a 1 page summary and
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If you're like to look at our full 35 page report on Seaport, go to Hidden Gems Investing here:.
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Here is another. 50% of the company's revenues and even more of the value are actually in the US!.
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Here is the link to the report. Disclaimer: This is not investment advice and is for informational purposes only. You should always do you own research.
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Swiss watch exports to the US continue to be strong. Exports to the UK have been stable. With stock markets near all-time highs and interest rates declining, retailers like Watches of Switzerland should be prime beneficiares. Read our report on WOSG at Hidden Gems Investing
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@OSA_Rochester Thanks. Agree that weather is a problem given the location. I think that will affect concerts less (highly intentional purchase) but will affect the restaurants, new entertainment locations as there are more alternatives to that in NYC.
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Assets include:.• Pier 17.• Food hall and market.• Retail and office buildings.• Undeveloped land.• Air rights.• JVs.• Baseball team and ballpark!. Most of these are in the Seaport district of New York, next to the Brooklyn Bridge and minutes walk from Wall St. This should
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@Reignots @manualofideas 250 Water could be sold anytime, I would hope in the next 6 months. There is nothing hold it up anymore and that would be a big catalyst. Changes at the Tin Building should start reducing cash burn towards the summer (they are currently remodelling it so will take time). Pier.
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@QCompounding Joel Greenblatt’s You Can Be A Stock Market Genius is excellent also. Great choices.
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@MikeFritzell @capitalemployed Python could help, although the data is very messy and would need to be manually cleaned afterwards.
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3. Haw has done an exceptional job but stays away from the limelight. TerraVest does not hold earnings calls and until recently did not speak to sell-side analysts or have an investor presentation. In fact, this is the only photo we can find of him! (He’s third from the right).
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The upside is less certain, but could be substantial. Pier 17 cost $HHH around $600mm to develop and we think could generate EBIT of $30mm one day and be worth $500mm+. The Pier has four sources of revenues:.• The Rooftop venue.• 210,000 sqft of office space.• Five
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Yet while $HHH shareholders are probably selling the stock happily, $SEG insiders are buying. Pershing Square owned 38% pre-spin and Founder @BillAckman was Chairman of Howard Hughes for 13 years, including when the spinoff was announced. Pershing backstopped the post-spin
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11. Haw is very aligned with shareholders. He lives off a base salary of C$413k, but owns stock and options worth $60mm today and C$115mm if the stock compounds at 8% until 2032.
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4. Haw was hired out of university in 2012 by Canadian value investor George Armoyan, having just completed a PHD in physics. Haw worked as an analyst for Armoyan’s investment firm Clarke, and was soon sitting on the TerraVest board and effectively running the company.
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We believe these insiders recognize that $HHH invested ~$1.5bn into these properties and that there is a path to significant recovery. $SEG has a market cap of $382mm and it has net cash. Many of the properties are just 10 mins walk from Wall St, overlook the Brooklyn Bridge,.
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@Nate93658762 I wrote this in the report: "However, we do know that Nikodemus was previously President & COO of CityCenter, a 67-acre complex on the Las Vegas Strip that includes iconic properties such as the ARIA Resort & Casino and The Cosmopolitan. He also worked with Live Nation and.
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@Reignots @manualofideas BadCo getting dumped post spin. complex financials with limited news. The backstopped rights offering created a merger/arb dynamic that needed to be worked through.
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Why is that?. Whereas Eataly Flatiron is surrounded by offices, Soho is primarily a shopping and entertainment destination rather than an office neighborhood. People can happy to carry groceries if they're making a quick visit after work on their way home, but not if they're on.
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Subscribers to Hidden Gems Investing receive:. ➡️3 Special Reports per year. Based on discussions with 20 industry experts and 30 pages, beginning with a 1 page summary. ➡️2 Deep Dives per year. 5 page writeups based on extensive primary research. ➡️Monthly Updates on the first
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Click here to watch the full podcast for free:. The timestamps to the full podcast are: . [01:37] Introduction to Seaport Entertainment .[08:22] Overview of Key New York Assets .[13:30] 250 Water Street .[21:15] Fulton Market Building .[23:35] Pier 17.
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Here is one example of a UK small cap trading at 7.5x P/E with:. ✅ Double digit growth.✅ Substantial net cash.✅ The best management team in the business.✅ The industry leading competitive position.
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Because of this increased market share, Jet2 is like to earn £2/shr of net income this year. It earned £0.9/shr pre-Covid. That's how the best customer service converts into numbers. The stock trades at £15, for a 7.5x P/E. 7/.
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Did you miss our new article on progress at Seaport Entertainment $SEG ?. Changes at SEG are going unnoticed. Learn more in new our article at Hidden Gems Investing (link in my bio). At Pier 17:. 1. Extending the rooftop concert series year-round. 2. Redeveloping 1/3 of the
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@MattBushND @woodford The median ROE for NYSE and NASDAQ stocks with a market cap over $1bn is 10%. For the LSE and AIM it's 8%.
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@krishnakodali No, but it's only $299 for an annual subscription and you get all the reports for that price.
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Eataly combines dinning, bar, grocery, and retail concepts into one experience. Each of these spaces is typically busy at the Flatiron location. 2/
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We wrote up Watches of Switzerland at £3.9 in August ’24. It trades at £5.6 today. Our report is available and was based on interviews with 19 sources and 10 store visits. It begins with a 1 page summary and is 35 pages. $WOSG $WOSG.L
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Strong results again from #Jet2. I particularly liked this section, which is a classic Jet2 case of focusing first on the customer:. "Inflight Retail Operations Centre (ROC):.Having successfully launched the ROC. with the Centre efficiently supplying inflight bar carts for over.
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@iancassel The businesses also tend to be easier to understand, and not abstract global enterprises. The competition you face as an investor also tends to be lower!.
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Unlike the Tin Building, the grocery and retail sections at Eataly Flatiron are so busy that you can barely see the products!. 3/
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The building is a luxury food hall and market that generated $32mm of revenue on $74mm of cost in 2023. Howard Hughes invested ~$200mm to build it. ( $HHH)
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We wrote up TerraVest at C$40 in January ‘24. It trades at C$120 today. Our report is now available for FREE and was based on interviews with 18 sources. The report begins with a 1 page summary and is 35 pages. $TVK $TVK.TO
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