Giles Capital Weekly - Week 37
Welcome to the first edition of the Giles Capital Weekly! Inspired by Michael Fritzell's Monday Morning Links, I aim to curate the best free investment insights from across Substack. Let’s get straight into it.
The US election drama continues to unfold, with Kamala Harris gaining ground after a strong debate performance against Donald Trump. Meanwhile, global investors are eyeing Southeast Asian markets as potentially lucrative alternatives to China. Dollar General faces operational hurdles on the corporate front, while Mitchell Services rides the commodities wave. Here are some of the write-ups and posts that caught my attention last week.
Company write-ups
Americas
The Science of Hitting on Dollar General(🇺🇸DG US - US$28.7 billion) Dollar General faces operational challenges and staffing issues. Trading at 13.7x forward earnings, the company could see a turnaround if it addresses execution problems and capitalizes on Family Dollar's struggles.
Value Don't Lie on Lamb Weston(🇺🇸LW US - US$10.8 billion) Lamb Weston faces headwinds from restaurant traffic slowdown and industry overcapacity. Trading at 9x EBITDA and 13.7x earnings, the company could benefit from lower capex and improved cash flows in FY26.
Europe, Middle East & Africa
Johan Lunau on Kitwave Group(🇬🇧KITW LN - US$120.2 million) Kitwave, a UK delivered wholesale business, trades at 9x EBITDA with a 20% ROIC. The company's focus on high-quality service and strategic acquisitions could drive long-term value creation.
Asia-Pacific
The Mikro Kap on Mitchell Services(🇦🇺MSV AU - US$56.8 million) Mitchell Services, an Australian drilling services provider, trades at 2.2x EV/EBITDA. The company's shift towards higher-margin underground drilling and exposure to coal and gold markets could drive future growth.
Articles
SILVER BULLETIN - This was Trump's election to lose. And he just might Nate Silver provides a thought-provoking analysis of the current state of the US presidential race. A must-read for understanding the potential market implications of the election outcome. (Estimated reading time: 10 minutes)
Noahpinion - The U.S. needs to pay more attention to electronic warfare Noah Smith explores the critical importance of electronic warfare in modern military strategy. A thought-provoking read that highlights potential investment opportunities in defense technology. (Estimated reading time: 12 minutes)
Asian Century Stocks - 9 Questions with Afiq Isa An informative interview offering insights into the Malaysian market. Essential reading for those interested in emerging market opportunities. (Estimated reading time: 18 minutes)
TSOH Investment Research Service - DG Tegus Panel Discussion Alex Morris shares insights from former Dollar General employees on the company's operational challenges. A must-read for anyone considering an investment in the discount retail space. (Estimated reading time: 8 minutes)
Invariant - Nicotine Pouches: The US Front Devin LaSarre provides an in-depth analysis of the growing nicotine pouch market in the US. A fascinating look at a controversial but potentially lucrative industry. (Estimated reading time: 15 minutes)
The International Investor - Global Investors Flock to Southeast Asia as Markets Outperform Eric Jurado examines the increasing appeal of Southeast Asian markets to global investors. An insightful piece for those looking to diversify their portfolios beyond traditional markets. (Estimated reading time: 7 minutes)
Best Anchor Stocks - What's It Worth? An in-depth exploration of various valuation methods used in stock analysis. A valuable resource for investors looking to refine their valuation techniques. (Estimated reading time: 15 minutes)
Currently, I’m only featuring free content. If you're a writer producing free, insightful investment analysis and would like to be considered for inclusion, feel free to reach out. What would you like to see in future editions? Let me know in the comments.
Disclaimer: This newsletter is for informational purposes only and does not constitute investment advice. All opinions expressed are those of the quoted authors and do not necessarily reflect the views of the newsletter creator. Always do your own research before making investment decisions.
The focus on free content is good, imho.