Glennjdk @Glennjdk: "𝐈 𝐰𝐢𝐥𝐥 𝐬𝐞𝐧𝐝 𝐨𝐮𝐭 𝐦𝐲..."

Denmark

𝐈 𝐰𝐢𝐥𝐥 𝐬𝐞𝐧𝐝 𝐨𝐮𝐭 𝐦𝐲 𝐟𝐫𝐞𝐞 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫 𝐭𝐨𝐦𝐨𝐫𝐫𝐨𝐰. 𝐘𝐨𝐮 𝐜𝐚𝐧 𝐬𝐭𝐢𝐥𝐥 𝐬𝐢𝐠𝐧 𝐮𝐩. I will send out my free newsletter tomorrow. In my newsletters, I usually write about stocks that aren't widely discussed here, so it won't be companies like $AAPL (Apple) , $KO (Coca-Cola) or $NVDA (NVIDIA Corporation) And usually, it is about stocks that are not in the $SPX500 Below, I have included an abstract of my November newsletter as an example: " $VID.MC (Vidrala S.A.) is a Spanish manufacturer of glass packaging products. They manufacture glass containers for food and beverage products and offer a comprehensive range of packaging services, including logistics solutions and beverage filling activities. They produce more than 8 billion bottles and jars per year, which are sold to over 1,600 customers. Vidrala has eight production sites, with three located in Spain, two in Portugal, two in England, one in Northern Ireland, and one in Italy. Their product segments are 34% wine, 25% beer, 15% spirits, 11% food, 8% soft drinks, and 7% others. Their largest region is Iberia, accounting for 40% of sales, followed by the UK & Ireland, which account for 36% of sales. Italy represents 8% of sales, while the rest of the EU accounts for 16% of sales. $VID.MC can be seen as a sustainable investment because their goal is to produce glass containers using fully recyclable materials and provide packaging services in the most efficient, profitable, and sustainable manner possible. Vidrala is an interesting investment opportunity due to the solid global demand for glass packaging. This demand is supported by strong underlying fundamentals for the consumption of food and beverages, as well as continuous support from packagers, brand owners, and consumers who view glass as the ultimate sustainable packaging material. Vidrala will also benefit from the widespread consensus that the world is consuming excessive amounts of plastic, particularly in the context of selling food and beverages to consumers. Glass is considered a viable solution to this problem, as it is 100% recyclable. It can be reshaped repeatedly without losing any of its properties. It also protects and preserves the food and drink within it, serving as a hygienic and healthy form of packaging. The CEO of Vidrala, Carlos Delclaux, mentioned in his letter to shareholders that "glass has a brighter future than ever." Furthermore, the glass container market is anticipated to grow at a CAGR of 5,2% until 2033 due to mega trends such as rising disposable income and urbanization. $VID.MC made significant acquisitions in 2023 that have the potential to enhance its performance in the future. The first is the beverages filling facilities and the logistic infrastructure in Bristol, which enhances the range of services they offer in the UK market. This facility secures glass volumes, helping their existing customers to grow, improves logistics and increases flexibility. The other acquisition is a minority stake of 29.36% in Vidroporto, S.A., a Brazilian company that manufactures glass containers. Vidroporto operates two sites and serves some of the leading brands in Brazil in segments such as beer, spirits, and soft drinks. Thus, Vidrala is diversifying its business towards the growing Brazilian market, creating a driver for future growth in regions that will offer interesting opportunities. However, there are also some risks to keep in mind when investing in $VID.MC . One area affected by high inflation is macroeconomics, where energy costs, raw materials costs, and other operating costs necessary for the production and sale of glass containers have increased. Particularly, energy costs hurt $VID.MC as the production of glass containers is highly energy-intensive. Electricity and natural gas costs are high for a company like Vidrala because the furnaces need to be heated to very high temperatures in order to produce glass. Furthermore, the glass manufacturing plants operate 24 hours a day and 365 days a year, which means they consistently consume energy. The elevated energy prices hurt Vidrala's performance in 2022, as free cash flow was negative, while their EBITDA margin was significantly lower than usual at 20,1%. EBITDA margin has since recovered to 26,4%, but if inflation surges again, it will affect Vidrala's results. $VID.MC has managed to deliver a ROIC above 10% in eight out of the past nine years (I only have numbers from 2014 and onwards). ROIC came in at 9,2% in 2016, which is the only time it has been below 10%. In the last five years, Vidrala has managed to deliver an average ROIC of 12,7%, which is impressive. And even in a challenging 2022 with high energy prices, Vidrala delivered a ROIC at 11,7%." If you want to sign up for the free newsletter, you can do so by scrolling to the bottom of the page when you read one of my analyses like this one: www.investseekers.com/post/intuit-ready-to-take-the-next-step Have a nice Sunday