The Market Maven - Week 22
Imperial Petroleum, Evolution AB, Neo Performance Metals
Imperial Petroleum 🇬🇷 (NASDAQ: IMPP, EV: -$22M, Last Close: $2.84)
Beware, Imperial Petroleum is a Greek shipping company. They are debt free with $120M of cash, and own 19 vessels: 10 dry bulkers and 9 tankers. These vessels are capable of producing $2+ a share in earnings.
IMPP spun out of CISS, a family owned Greek shipper, before completed dilutive offerings to purchase ships. This ended about a year ago, at which point the CEO (the son of CISS’s owner) increased his ownership of IMPP from 0 to 40% through a combination of preferred conversions, open market purchases, and buybacks.
A recent VIC Writeup (Link)
Evolution 🇸🇪 (STO: EVO, EV: 124B SEK, Last Close: 658 SEK)
Evolution is the leading B2B provider of Online Live Casino and Slots content. EVO generates 2-3x or more revenue per game compared to competitors allowing for higher take rates. Regulation helps keeps competitors at bay, but is also the main risk to future margins.
Evolution is returning 9% of their market cap to shareholders each year while growing FCF in the low teens.
Neo Performance Metals 🇨🇦 (TSE: NEO, EV: $409M, Last Close: $9.63)
Neo is the largest and most vertically integrated processor of rare earths metals outside of China. They have net cash, pay a 4% dividend yield, and recently sold assets for 11x mid cycle EBITDA. The remaining and higher quality company currently trades for 4x.
Back in 2012 the predecessor to Neo with less assets then today, was sold for $1.3B. Additionally, new CEO Rahim Suleman has been selling off sub-scale and low return assets while delivering on existing capex projects
Disclosure: This newsletter does not provide investment advice. Information presented is for informational purposes only and should not be considered a recommendation to buy or sell securities. The author may or may not own the securities discussed.