Investment Pitches

Pitch Summary:
Apple's fiscal Q2 2026 results exceeded expectations with strong iPhone 17 demand and significant growth in its Services segment. The company reported a 17% increase in revenue year-over-year, driven by a 22% rise in iPhone sales and a 16% increase in Services revenue. Despite these positive results, the market remains cautious about Apple's AI strategy, which is seen as crucial for future growth. The upcoming leadership transition to John Ternus is expected to focus on faster product development and AI integration. Apple's capital allocation strategy, including a robust buyback program, supports its stock price, but organic growth is necessary to justify its premium valuation.

BSD Analysis:
Apple's strong performance in Q2 2026 highlights its ability to leverage its ecosystem, with the iPhone 17 cycle showing unexpected vigor and Services becoming a key profit driver. However, the lack of a clear AI strategy compared to competitors like Microsoft and Google is a concern. The company's ability to integrate AI into its products, particularly through Siri, could redefine its growth trajectory. The transition to new CEO John Ternus may bring a shift towards more aggressive innovation and service-oriented strategies. While Apple's buyback program provides a buffer, sustainable growth will depend on its ability to capitalize on AI and maintain momentum in key markets like China.

Pitch Summary:
West Pharmaceutical Services, Inc. is a dominant player in the injectable drug delivery market, with a strong presence in biologics and biosimilars. The company has a wide moat due to its scale, proprietary products, and regulatory advantages. Despite its market leadership and growth drivers, including demand from biologics and GLP-1 drugs, the stock's valuation is a concern. The company has a solid balance sheet and a 32-year streak of dividend increases, making it attractive for dividend growth portfolios. However, the stock is currently trading slightly below its historical average valuation, leading to a 'hold' recommendation.

BSD Analysis:
West Pharmaceutical's growth is driven by its proprietary segment's offerings and regulatory frameworks like Annex 1 in Europe. The firm benefits from being a preferred supplier for biologics and GLP-1 drugs, which are expected to grow significantly. Despite challenges like inflation and tariffs, the company's strong financial position and minimal debt provide flexibility. The valuation, while slightly below historical averages, reflects the company's market dominance and growth potential. Analysts have a higher price target, indicating optimism about future performance, but the current valuation suggests a cautious approach.

Pitch Summary:
Apple Inc. has reported strong fiscal Q2 results, with a 22% growth in iPhone sales and a total revenue of $111.18 billion, beating expectations. The company continues to demonstrate robust growth, driven by its services segment and operating leverage from products. Despite its premium valuation, Apple's ability to generate significant cash flow and its commitment to shareholder returns through dividends and buybacks make it an attractive investment. However, the high P/E ratio of 28x suggests that the stock is not cheap, which is why a Hold rating is maintained.

BSD Analysis:
Apple's transition in leadership from Tim Cook to John Ternus signals a potential shift towards a more product-focused strategy, which could drive future growth. The company's strong cash flow generation, with over $82.6 billion in the last six months, supports its ability to return value to shareholders while investing in innovation. The market cap of ~$4 trillion reflects investor confidence in Apple's growth prospects, although the valuation remains a concern. The mix of being a cash cow and having growth potential positions Apple uniquely among tech giants. The upcoming product innovations, such as the MacBook Neo and potential foldable iPhone, further bolster the long-term growth outlook.

Pitch Summary:
DraftKings Inc. has experienced a volatile journey since going public in 2020, initially soaring due to favorable market conditions and a compelling growth story. Despite a slowdown in growth rates, the company has maintained a strong market position, capturing a significant share of the online sports betting market alongside FanDuel. The company's ability to sustain growth while reducing promotional expenses and achieving profitability highlights its resilience and strategic positioning. With further state-level expansions and potential international growth, DraftKings is well-positioned to capitalize on its asset-light model, which offers significant margin expansion opportunities compared to its peers.

BSD Analysis:
DraftKings' strategic focus on maintaining market share while optimizing costs has allowed it to transition from a high-growth phase to a more stable, profitable stage. The company's asset-light model provides a competitive edge, enabling it to scale efficiently without the burden of physical infrastructure. While prediction markets pose a potential threat, DraftKings is proactively entering this space with its own product, mitigating competitive risks. The company's established presence and first-mover advantage in legalized states provide a solid foundation for continued growth. Despite potential regulatory challenges, DraftKings' strategic initiatives position it for long-term success in the evolving online gaming landscape.

Pitch Summary:
Snap-on Incorporated has shown sluggish growth in recent years, with some disappointing bottom-line results. However, the company is experiencing a positive shift in 2026, with revenue, profits, and cash flows all increasing in the first quarter. Despite these improvements, the stock is priced at a discount compared to similar firms, which suggests a cautious approach. The company's strategic priorities include enhancing franchisee sales productivity and investing in product innovation, which could drive future growth. However, consistent results are needed before considering an upgrade from a 'hold' rating.

BSD Analysis:
Snap-on's financial performance has been mixed, with recent improvements in revenue and profitability offering a glimmer of hope. The company's Snap-on Tools Group has faced challenges, particularly in the US market, but management is actively working on strategies to address these issues. The Commercial & Industrial Group and Repair Systems & Information Group have shown signs of growth, driven by organic sales increases and demand in critical industries. Despite these positive developments, macroeconomic headwinds such as rising material costs and tariff uncertainties pose risks. The company's valuation is attractive relative to peers, but the historical financial performance warrants a cautious stance.

Pitch Summary:
Bombardier Inc. has shown resilience with a 5% year-over-year increase in Q1 2026 revenues, driven by a strong performance in its Services division. The company has upgraded its free cash flow guidance, reflecting robust order activity and improved cash collection processes. Despite some margin contraction due to delivery timing and increased R&D spending, Bombardier's strategic focus on expanding its services footprint and enhancing its defense segment positions it for future growth. The company's ability to deleverage its balance sheet and potentially initiate shareholder returns adds to its investment appeal.

BSD Analysis:
Bombardier's strategic initiatives, including expanding its services and defense segments, are crucial for long-term growth. The company's focus on reducing debt and improving cash flow efficiency is expected to enhance its financial stability. While supply chain challenges persist, particularly with engine deliveries, Bombardier's proactive measures to address these issues should support its growth trajectory. The company's valuation remains attractive, trading at a discount compared to its peers, which, combined with its deleveraging efforts, suggests potential for significant upside. The anticipated growth in services and defense, alongside stable aircraft deliveries, underpins a promising outlook.

Pitch Summary:
Seagate Technology Holdings plc has shown impressive fiscal Q3 results, with revenue and non-GAAP EPS exceeding expectations. The company has a strong focus on data center storage, which constituted 80% of total sales in Q3. Seagate's financial health is improving, with significant free cash flow generation and debt reduction. Analysts have raised their target prices, indicating confidence in Seagate's growth prospects. The company has secured favorable pricing for its HDD products, which is expected to sustain revenue growth in the near term.

BSD Analysis:
Seagate's recent performance is largely driven by its pricing power in the HDD market, which has contributed significantly to its revenue growth. The company's strategic focus on data centers positions it well to capitalize on the increasing demand for data storage solutions. However, the reliance on pricing actions suggests that future growth may be contingent on maintaining this pricing power. With nearline capacity almost fully allocated through 2027, Seagate is poised to benefit from the current supply-demand dynamics. Investors should be aware of the potential risks if pricing power diminishes.

Pitch Summary:
GPGI, formerly CompoSecure, has transformed under the leadership of David Cote into a platform for acquiring and optimizing industrial assets. Cote's track record includes significant successes like the Honeywell turnaround and the acquisition of Vertiv, where operational improvements led to substantial shareholder returns. GPGI's strategy involves acquiring undervalued industrial assets and applying a rigorous management system to enhance value. The recent acquisition of Husky Technologies is expected to triple GPGI's revenue base and provide significant margin expansion opportunities. Despite recent market jitters over leverage and earnings, GPGI's long-term growth prospects remain strong, with targets for substantial EBITDA growth and margin expansion.

BSD Analysis:
GPGI's business model is designed to offer an alternative to traditional private equity IPOs, providing sellers with full liquidity for their stakes. The company's ownership structure, involving Resolute Holdings, aligns management incentives with long-term value creation. However, the complex structure could pose potential conflicts of interest. The acquisition of Husky Technologies positions GPGI well in the growing PET packaging market, with plans for operational improvements through the Resolute Operating System. While the company's leverage is a concern, management's focus on EBITDA growth and cash flow generation should mitigate risks. The market's current pricing may not fully reflect GPGI's potential for margin expansion and value creation.

Pitch Summary:
Meta Platforms, Inc. demonstrated robust growth in Q1 2026, with revenue reaching $56.3 billion, marking a 33% year-over-year increase. The company is leveraging its AI infrastructure to enhance advertising effectiveness, resulting in a 19% increase in ad impressions and a 12% rise in price per ad. Meta's strategic focus on AI-driven ad matching and business AI solutions is creating a compounding growth flywheel. Despite a significant increase in CapEx guidance due to memory component price inflation, Meta's core operating margins remain strong. The company's valuation remains attractive at approximately 18.3x forward earnings, with substantial growth potential from WhatsApp monetization and new AI product offerings.

BSD Analysis:
Meta's investment in AI infrastructure is yielding tangible benefits, as evidenced by improved engagement metrics and advertiser ROI. The company's adaptive ranking model and AI-driven ad solutions are enhancing conversion rates and driving revenue growth. While the increased CapEx guidance poses a short-term margin compression risk, it is primarily due to non-cash depreciation expenses. Meta's strategic initiatives, such as the expansion of WhatsApp's monetization and the development of advanced AI models, position the company for sustained growth. The market may be underestimating the long-term operating leverage potential as AI efficiencies and new revenue streams materialize.

Pitch Summary:
VF Corp manages apparel brands, including The North Face, Timberland, and Vans. The company has fixed its balance sheet, improved capital allocation, and rebuilt its management team in an effort to return the business to growth. I believe that the company has good brands, the skills to manage them well, and a management team that can handle the challenges that the company faces. VF Corp currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital has invested in VF Corp as a turnaround opportunity in the branded apparel sector, focusing on the company's portfolio of strong consumer brands including The North Face, Timberland, and Vans. The manager emphasizes three key operational improvements: balance sheet repair, enhanced capital allocation discipline, and management team rebuilding, all aimed at returning the business to sustainable growth. The investment thesis rests on the enduring strength of VF's brand portfolio and the manager's confidence in the new management team's ability to navigate industry challenges effectively. The manager's emphasis on "attractive upside-to-downside ratio" suggests the current valuation provides significant asymmetric return potential as the turnaround progresses. VF Corp's brands have strong consumer recognition and loyalty in outdoor and lifestyle categories, providing a solid foundation for recovery. The combination of operational improvements, strong brands, and attractive valuation creates multiple pathways for value creation as the company executes its turnaround strategy.

Pitch Summary:
Siemens Energy combines a world-class electrical power generation business, a world-class electricity transmission business, and an onshore and offshore wind turbine business that is attempting a turnaround. The company spun out of Siemens in September 2020. After many years of weak electricity demand in OECD countries, Siemens Energy is benefiting from a cyclical boom that has been boosted by AI's demand for electricity.

BSD Analysis:
Curreen Capital views Siemens Energy as a compelling spinoff opportunity positioned to benefit from a significant cyclical upturn in electricity demand. The company combines two world-class businesses in power generation and transmission with a wind turbine division undergoing turnaround efforts. As a September 2020 Siemens spinoff, the investment aligns with Curreen's focus on post-spinoff opportunities. The manager highlights a fundamental shift in electricity demand dynamics, with AI-driven power consumption creating a cyclical boom after years of weak demand in developed markets. This demand surge should benefit Siemens Energy's core power generation and transmission businesses, which have maintained their market-leading positions through the downturn. The wind turbine business turnaround adds additional upside potential as renewable energy demand accelerates. The combination of cyclical recovery, AI-driven demand growth, and operational improvements in the wind division creates multiple drivers for value creation. Curreen's investment reflects confidence in the company's ability to capitalize on this favorable demand environment.

Pitch Summary:
GetBusy provides online document exchange systems—primarily for accountants. GetBusy spun out of Reckon in August 2017, and has continued to grow since then. GetBusy does not earn money, investing through higher expenses to grow its existing businesses and attempting to launch new products. The underlying businesses are profitable and sustainable in the U.K. and U.S.

BSD Analysis:
Curreen Capital has invested in GetBusy as a growth-stage spinoff opportunity in the professional services software sector. The company provides essential document exchange systems primarily to accounting firms, operating in a niche market with strong customer stickiness and recurring revenue characteristics. As a 2017 Reckon spinoff, GetBusy represents another example of Curreen's spinoff-focused strategy. While the company is currently unprofitable at the consolidated level due to growth investments and new product development, the manager emphasizes that the underlying core businesses are profitable and sustainable in both the UK and US markets. This suggests the current losses are strategic investments in growth rather than fundamental business issues. The accounting software market benefits from regulatory requirements and the mission-critical nature of document exchange for professional services. Curreen's investment reflects confidence that the company's growth investments will eventually translate into meaningful profitability as the business scales and new products gain traction.

Pitch Summary:
Frontdoor sells home service plans to homeowners. The company contracts with HVAC and other contractors and dispatches them when customers have problems with one of their major home appliances and systems (furnace, air conditioning, refrigerator, electrical system, etc). Frontdoor spun out of ServiceMaster in October 2018. Frontdoor serves about 2% of U.S. homes, and uses its free cash flow to grow organically, pay down debt, repurchase shares, and acquire complementary businesses.

BSD Analysis:
Curreen Capital views Frontdoor as an attractive spinoff investment with significant market penetration opportunity and strong capital allocation discipline. The company operates in the home service plan market, serving only 2% of U.S. homes, which suggests substantial runway for organic growth in a large addressable market. As a 2018 ServiceMaster spinoff, Frontdoor fits Curreen's strategy of targeting post-spinoff opportunities that may be undervalued by the market. The manager highlights the company's disciplined capital allocation approach, using free cash flow for multiple value-creating activities including organic growth, debt reduction, share repurchases, and strategic acquisitions. This balanced approach to capital deployment demonstrates management's focus on shareholder value creation. The home service plan business model provides recurring revenue characteristics and benefits from the essential nature of home system maintenance. The low market penetration combined with strong free cash flow generation and prudent capital allocation suggests significant long-term value creation potential.

Pitch Summary:
Fortrea helps its biotech and pharmaceutical customers to run clinical trials with the goal of receiving marketing authorization in the U.S. and other countries. Fortrea helps design the trials, recruit investigators and participants, prepare data for regulatory review, and other tasks needed to win the authorization to market new treatments. The company spun out of Labcorp in June 2023, and is attempting to turn around the business. Fortrea currently trades at a very attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital has identified Fortrea as a compelling spinoff opportunity in the clinical research organization (CRO) sector. The company provides essential services to biotech and pharmaceutical companies throughout the clinical trial process, from trial design to regulatory submission, positioning it in the critical path of drug development. As a recent spinoff from Labcorp in June 2023, Fortrea represents the type of corporate action that Curreen specifically targets for potential mispricings. The manager views the company as undergoing a business turnaround, suggesting operational improvements are expected to drive value creation. The emphasis on "very attractive upside-to-downside ratio" indicates the manager sees significant asymmetric return potential at current valuations. The CRO industry benefits from the growing pharmaceutical R&D spending and increasing outsourcing trends. Curreen's investment aligns with their strategy of finding undervalued spinoffs with turnaround potential in essential service industries.

Pitch Summary:
Advance Auto Parts is a store-based retailer of aftermarket automotive parts and supplies. This includes batteries, windshield wipers and fluid, air filters, motor oil, etc. The company has historically earned decent (approaching 20%) returns on tangible capital. The company is attempting a turnaround, and has fixed its balance sheet and is improving operations. Advance Auto currently trades at an attractive upside-to-downside ratio.

BSD Analysis:
Curreen Capital views Advance Auto Parts as an attractive turnaround opportunity in the automotive aftermarket retail space. The manager highlights the company's historically strong capital efficiency with returns on tangible capital approaching 20%, indicating a fundamentally sound business model. The investment thesis centers on the company's ongoing operational turnaround efforts and balance sheet repair, which appear to be progressing successfully. The manager emphasizes the attractive risk-adjusted valuation, suggesting the current price offers compelling upside potential relative to downside risk. This position aligns with Curreen's strategy of investing in undervalued businesses undergoing positive operational changes. The automotive aftermarket benefits from the non-discretionary nature of vehicle maintenance and repair needs. The manager's confidence in the turnaround progress and valuation attractiveness suggests this could be a significant contributor to portfolio returns as operational improvements materialize.

Pitch Summary:
Ally Financial has undergone a significant transformation over the past 15 years. Rebranded in 2009 from General Motors' former financing arm and listed in 2014, it is now an independent, deposit-funded digital-first bank. Today, Ally has c.$140bn of loans outstanding, including c.$95bn in auto loans, alongside c.$10bn of auto leases and c.$30bn of investment securities. Crucially, 87% of its funding comes from deposits, with over 90% insured—providing a stable funding base. We believe the investment case is straightforward: rising net interest margins (NIM), the spread between loan yields and deposit costs, combined with improving asset quality, should drive higher returns and book value per share growth. In the wake of the 2023 regional banking turmoil, underwriting standards have tightened materially. Federal Reserve stress tests indicate Ally can withstand a severe downside scenario akin to 2008-09 without requiring additional capital. Looking at history, we believe Ally can earn c.$6 in earnings per share. At 10x earnings, this implies a fair value of $60 per share, around 50% upside, alongside a dividend yield of over 3%.

BSD Analysis:
Oldfield Partners presents a compelling bull case for Ally Financial, emphasizing the company's successful transformation from GM's captive finance arm to an independent digital-first bank. The investment thesis rests on Ally's stable funding profile, with 87% deposit-funded operations and over 90% FDIC-insured deposits, providing a significant competitive advantage in the current banking environment. The manager expects rising net interest margins and improving asset quality to drive earnings growth, supported by materially tightened underwriting standards following the 2023 regional banking crisis. With $140 billion in loans outstanding, primarily auto-focused, Ally benefits from a specialized lending niche while maintaining diversification through investment securities. The Federal Reserve stress tests validate the bank's capital adequacy, demonstrating resilience even in severe economic downturns comparable to 2008-09. The fund's $60 price target, based on 10x normalized earnings of $6 per share, implies approximately 50% upside potential from current levels. Combined with a dividend yield exceeding 3%, this creates an attractive total return opportunity for value investors seeking exposure to a well-capitalized, deposit-funded financial institution with improving fundamentals.

Pitch Summary:
Merck (the German version, not to be confused with the American one) started as a pharmacy in 1668. We have a bias to investing in companies with a long history. The average age of the companies in the portfolio today is over 100 years, which we view as a good signal of resilience to withstand external shocks. Today Merck is still controlled by its founding family, now in its 13th generation – even more impressive. Merck began as a pharmaceutical business. Over the last 15 years it has expanded into life sciences and semiconductor materials, two divisions which now account for c.60% of sales. We expect these businesses to grow ahead of GDP over the medium term. The pharma business accounts for the remaining 40% but is unlikely to deliver more than low single-digit growth. The life science business is one of the leading providers of consumables and equipment to produce biologic drugs. This has suffered in recent years as Covid-related demand normalised. The semiconductor business provides materials and hardware to produce logic and memory chips. The pharma business is very diversified, with the largest drug accounting for under 14% of sales and more than half of sales coming from off-patent drugs. The combination of Covid-related demand normalising, the downturn in the analogue semiconductor industry, and pipeline failures in the pharma business have created the value opportunity in Merck today. These issues are in the rear-view mirror. The company historically traded at a high teen multiple of its earnings, but we initiated the position at 14 times earnings. On price-to-book the shares have not been this cheap since 2011.

BSD Analysis:
Oldfield Partners initiated a position in Merck KGaA, viewing it as a compelling value opportunity created by temporary headwinds across its three business segments. The fund manager emphasizes the company's exceptional longevity, having operated since 1668 and remaining family-controlled through 13 generations, which signals resilience and long-term thinking. The investment thesis centers on Merck's transformation from a pure pharmaceutical company to a diversified science and technology business, with life sciences and semiconductor materials now comprising 60% of sales and expected to grow above GDP. The manager believes the current challenges—Covid demand normalization in life sciences, semiconductor industry downturn, and pharma pipeline setbacks—are transitory and already reflected in the depressed valuation. At 14x earnings, the stock trades well below its historical high-teen multiple, while the price-to-book ratio hasn't been this attractive since 2011. The diversified pharma business provides stability with no single drug representing more than 14% of sales and over half coming from off-patent products. This combination of temporary headwinds, attractive valuation, and long-term growth prospects in life sciences and semiconductor materials creates a classic value opportunity for patient investors.