Damien Albin Douarre @Lyssky: "𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐔𝐩𝐝𝐚𝐭𝐞 📈 Thank God..."

France

𝐏𝐨𝐫𝐭𝐟𝐨𝐥𝐢𝐨 𝐔𝐩𝐝𝐚𝐭𝐞 📈 Thank God it’s Friday, here’s the weekly recap of the portfolio’s adjustments. This week we welcome $VITL (Vital Farms Inc) as we’re growing away from hype and over-heated tech. I also slightly reinforced $RMS.PA (Hermes International) as it dropped a little : 🟢 𝗡𝗲𝘄 𝗯𝘂𝘆 : $VITL 2.01% of the portfolio’s equity @ $12.99 🟢 𝗡𝗲𝘄 𝗯𝘂𝘆 : $RMS.PA 0.25% of the portfolio’s equity @ €1695.50 Anticipating a significant decline in purchasing power especially in the middle and lower classes, I looked out for companies that are positioned to benefit from such an environment. Several candidates emerged, but $VITL clearly stood out. If you’re looking for a straightforward way to gain exposure to a purchasing power crisis, this is it: 𝘁𝗵𝗲 𝗰𝗼𝗺𝗽𝗮𝗻𝘆 𝘀𝗲𝗹𝗹𝘀 𝗲𝗴𝗴𝘀. Eggs are a staple of human nutrition. They are highly versatile, rich in protein and essential nutrients, and represent the cheapest animal-based protein on a per pound basis. When meat prices rise as they have recently, consumers naturally shift toward more affordable alternatives: first pork and chicken, and eventually eggs. As a result, eggs enjoy both stable, recurring demand and incremental demand driven by consumer substitution toward cheaper protein sources. The main challenge today lies in expanding production quickly enough to meet demand, while also managing the recurring impact of avian flu cycles. The first challenge is largely an opportunity, and $VITL is already well positioned. The company focuses on ethical, pasture raised hens and complies with increasingly strict animal welfare regulations, unlike intensive production models that are facing growing regulatory and societal pushback. The second challenge is evolving. Experts suggest that while the avian flu is becoming more persistent, its cyclical spikes are less severe than in the past. This dynamic affects egg prices and, by extension, $VITL’s earnings. This brings me to why I believe the stock is currently undervalued. For eight consecutive quarters, the company materially exceeded earnings expectations. In Q1, however, easing egg shortages led to a minor earnings miss, prompting what appears to be an egg-xaggerated negative market reaction. (I HAD TO place at least one pun). Fundamentals remain very strong. The company has a debt to equity ratio of just 0.1, an operating margin of 11.6% (8.7% net margin), and egg-xcellent profitability metrics, including a 19% ROE and a 16% ROIC. Despite all this, $VITL trades at just 0.74x annual sales and 8.7x net earnings. Yes, you read that correctly. A re rating toward a more reasonable P/E multiple of 15–20x would imply roughly 100% upside from current levels. Combine that with long term purchasing power pressures, and you have a credible case for a potential multibagger. On a cash side, this week’s investments brought holdings to 12.26% of the portfolio. Cheers 🥂 D.A.D $SPX500 $NSDQ100 $FRA40 𝘋𝘪𝘴𝘤𝘭𝘢𝘪𝘮𝘦𝘳: 𝘛𝘩𝘪𝘴 𝘱𝘰𝘴𝘵 𝘳𝘦𝘧𝘭𝘦𝘤𝘵𝘴 𝘮𝘺 𝘱𝘦𝘳𝘴𝘰𝘯𝘢𝘭 𝘰𝘱𝘪𝘯𝘪𝘰𝘯𝘴 𝘢𝘯𝘥 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘥𝘦𝘤𝘪𝘴𝘪𝘰𝘯𝘴. 𝘐𝘵 𝘪𝘴 𝘯𝘰𝘵 𝘧𝘪𝘯𝘢𝘯𝘤𝘪𝘢𝘭 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘐𝘯𝘷𝘦𝘴𝘵𝘪𝘯𝘨 𝘪𝘯𝘷𝘰𝘭𝘷𝘦𝘴 𝘳𝘪𝘴𝘬, 𝘢𝘯𝘥 𝘱𝘢𝘴𝘵 𝘱𝘦𝘳𝘧𝘰𝘳𝘮𝘢𝘯𝘤𝘦 𝘪𝘴 𝘯𝘰𝘵 𝘪𝘯𝘥𝘪𝘤𝘢𝘵𝘪𝘷𝘦 𝘰𝘧 𝘧𝘶𝘵𝘶𝘳𝘦 𝘳𝘦𝘴𝘶𝘭𝘵𝘴

Not investment advice. The author may have financial interests in the mentioned instruments.