Dear Subscriber, Happy August 1st!
I’m testing out ConvertKit for this month’s newsletter. It’s lightweight and a better creator experience compared to Mailchimp. I’m enjoying it so far. I hope You enjoy you enjoy the end product.
I’ve now taken the CFA Level 1 exam and am excited to publish more things here. The Level 1 May cohort was incredibly competitive (25% passed)… so… we’ll see how I do.
With an upcoming job change, I’ll have to change the nature of the newsletter in the future. More to come soon, but for now let’s talk stocks.
WeCommerce. These guys are good! Run by Andrew Wilkinson, Chris Sparling and Alex Persson. They’re a holding company focused on acquiring businesses in the Shopify Ecosystem. They’re good operators and made a transformative acquisition a few months ago. They’re competing against Venture Capital and Private Equity, and have carved out a niche in with their practice of doing fair and Founder-friendly deals. That’s smart. This business is a fast grower, run by good people, with a long runway.
Salona Global. Announced their first acquisition recently. It appears to be an OK one that is not too dilutive while roughly doubling revenue going forward. Part of their strategy is acquiring companies with limited international revenues, and then subsequently expanding them. Makes sense and I think they can execute.
De-SPACs. The SPAC tide is out and prices have come down, but there are still de-SPACs happening. The Thoma Bravo / ironSource de-SPAC was completed fairly quickly. There are a lot of announced de-SPACs still in process, though. The interesting ones so far are AGCB / Grab, BTNB / PropertyGuru, KVSB / Nextdoor and DGNS / Cvent.
Now for a few SPACs. AGCB, BTWN, DGNU and LMACU are all worth taking a look at. The sponsors have good track records of doing savvy deals. All except for LMACU are trading below their $10 redemption value. I think of these as, loosely, bond-like downside with potential equity-like upside. Seems like on Ok bet to make.
Alta Fox Capital released their Q2 letter. What phenomenal returns. Read Connor’s letter. They continue to knock it out of the park.
Until next time, Riley