The Market Maven - Week 29
Prosus, Haivision, National CineMedia
Prosus (Tencent) 🇨🇳 (AMS: PRX, EV: €105.5B, Last Close: €48.86)
Prosus is a great way to own Tencent, the parent company behind China’s super app, WeChat. Prosus trades at a discount to its stake in Tencent and also owns a basket of listed and unlisted assets. They’ve been increasing shareholder value by selling their listed assets and using the proceeds to repurchase shares at a discount to said listed assets which has steadily increased NAV/share.
Meanwhile, the underlying Tencent stake trades at only 5x adj. earnings and continues to grow FCF at 20%+ rates. Outside of their core business, Tencent also owns a 100+ company portfolio through it’s VC investments. The likes of witch include, Riot Games, Snap, Reddit, Spotify, UMG, JD, the list goes on…
A Tencent Writeup from Brian Coughlin (Link).
A PROSUS VIC Writeup (Link).
A Tencent VIC Writeup (Link).
Haivision 🇨🇦 (TSE: HAI, EV: $134M, Last Close: $4.72)
Haivision is an owner operator led real-time video solutions provider. They help businesses like broadcasters or the NFL get content from a camera all the way through to your device in real time. Haivision is riding a huge wave in an industry which is expected to 5x over the next decade as real time video monitoring proliferates across all industries.
Shares currently trade for ~10x forward FCF.
A Great Writeup from James Emanuel and His Pitch from MOI’s Best Ideas 2025 Conference (Link, Link).
A Writeup on Haivsion from Altai Capital’s Q3 2024 Letter (Link, pg. 2).
National CineMedia 🇺🇸 (NASDAQ: NCMI, EV: $402M, Last Close: $4.77)
CineMedia went through bankruptcy during COVID and emerged with a clean balance sheet. They operate the largest in-theater advertising network in the U.S through exclusive partnerships with the leading cinema chains.
The company recently reinstated it’s dividend, is aggressively repurchasing shares, and trades for a ~12% FCF yield (which under more normalized margins would be ~20%).
A Recent VIC Writeup (Link).
A Quick Thesis on NCMI from Riverwater Partners Small Cap Strategy Q4 2024 Letter (Link).
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.