Investment Pitches

Pitch Summary:
Poor management has plagued International Flavors & Fragrances for years. As a leading producer of food, beverage, scent, home and personal care, and health products and ingredients, its products are ubiquitous across many household staples. They produce one -third of probiotics, the enzyme used in half of cold -water laundry detergents, another enzyme used in 20% of the beer brewed globally, and one -third of yogurts use an IFF culture, to name a few. Prior management's reckless capital allocation and ineptit ude at managing its diverse global enterprise, transforming a high -margin, unlevered company into one with a lower margin and a higher level of leverage. We have a constructive view of the new CEO, who has renewed the company's focus on being a best -in -cla ss operationally with a smaller product suite. They have sold, and will continue to sell, non -core assets, which will decrease their leverage and, hopefully, allow for higher margins. The company has burned the market, and many investors have taken a wait -and -see attitude reasonably. We believe that their current $4 of free cash earnings could increase to $5 -6 in a few years, and if successful, their P/E should also rise. With its stock currently at $67, a reasonable downside could be around $60, and its upside could be around $125 (a three -year view that excludes free cash flow).

BSD Analysis:
International Flavors & Fragrances is successfully executing its Project Revival turnaround, focusing on high-margin core segments like Scent and Taste to drive volume-led growth in 2026. The company recently surpassed Q4 revenue expectations, with a significantly improved debt-to-EBITDA ratio signaling a healthier balance sheet. While earnings per share have seen some near-term pressure from restructuring costs, multiple analyst upgrades highlight a positive outlook for margin expansion as operational efficiencies take hold. Management’s 2026 sales guidance of up to 10.8 billion dollars reflects a cautious but steady recovery in global consumer demand. With strategic divestitures of non-core assets nearly complete, IFF is well-positioned to leverage its R&D leadership to capture emerging opportunities in the health and biosciences markets.

Pitch Summary:
Safran, buoyed by robust aerospace and aftermarket parts demand, report ed record profits for the prior year in early 2025. As global air traffic continued to recover and air carriers ramped up maintenance projects, the company saw stronger aftermarket growth and converted operational efficiency gains into higher earnings, prompting management to raise full -year guidance for 2025.

BSD Analysis:
Safran is capitalizing on a record surge in passenger traffic and defense spending, entering 2026 with double-digit revenue growth and expanded recurring operating margins of 16.6 percent. The company is benefiting from unprecedented aftermarket services demand for its LEAP engines, as airlines focus on maintaining current fleets amid broader supply chain constraints. Management has raised its 2028 financial ambitions, targeting up to 7.5 billion euros in recurring operating income supported by a 5 billion euro share buyback program. The defense segment is gaining significant momentum, providing a stable, high-margin revenue stream that balances the more cyclical commercial aerospace division. For investors, Safran offers a high-quality combination of industrial scale and robust cash generation, making it a cornerstone holding in the global aerospace and defense sector.

Pitch Summary:
Longtime holding TE Connectivity benefitted in 2025 from continued demand growth in several of the markets in which it sells into, including: AI infrastructure and data center connectivity; energy and grid update cycling; and industrial automation. TE also acquired Richards Manufacturing earlier in the year, which helped strengthen the company’s competitive position in industrial and utility markets, and raised the dividend throughout 2025.

BSD Analysis:
TE Connectivity is delivering record-setting financial results in 2026, driven by a significant upward revision in AI revenue expectations and a robust 1.1 book-to-bill ratio. The company’s Industrial Solutions segment is seeing explosive 38 percent growth as digital data networks and AI-related infrastructure demand outpace historical targets. Management has successfully expanded adjusted operating margins to 22 percent while returning all free cash flow to shareholders through buybacks and a 20 percent dividend increase. Despite inflationary pressures in raw metals, the firm’s ability to pass through costs and its dominant position in the automotive and energy sectors provide a resilient earnings profile. With fiscal 2026 projected to deliver double-digit EPS growth, TE Connectivity remains a premier pick for investors seeking exposure to the electrification and digitization of the global economy.

Pitch Summary:
SAP SE is a resilient and deeply embedded enterprise software provider, crucial for the operations of the world's largest companies. Despite recent stock price declines, SAP's transition to cloud services is expanding its total addressable market and revenue potential. The company has demonstrated strong financial performance with significant growth in cloud revenues and backlog, surpassing its five-year targets. SAP is well-positioned to benefit from AI integration, enhancing its enterprise offerings and maintaining its competitive edge. Furthermore, geopolitical shifts towards sovereign cloud solutions in Europe present additional growth opportunities for SAP.

BSD Analysis:
SAP's recent financial results highlight its robust business momentum, with cloud revenues growing by 26% year-over-year and accounting for 58% of total revenue. The company's strategic shift from on-premises to cloud-based contracts allows for higher contract values and improved cross-selling opportunities. Despite a minor miss in cloud backlog growth, SAP's overall booking performance remains strong, with significant customer wins and a growing demand for its AI capabilities. The company's financial health is solid, with a strong balance sheet and a new share repurchase program, indicating confidence in its future prospects. SAP's integration of AI into its enterprise software positions it as a leader in the evolving digital landscape.

Pitch Summary:
FMC Corporation has initiated a strategic review amid weak results and a challenging outlook for 2026. The review may lead to a potential sale, but management is currently focused on reducing debt by $1 billion through asset sales and licensing. While the company faces challenges such as the post-patent decline of Rynaxypyr, there are promising areas like New Active Ingredients. The market is not currently pricing in a recovery, which presents an opportunity for investors if the company can successfully execute its strategic initiatives.

BSD Analysis:
FMC's strategic review is a critical step in addressing its current financial challenges and positioning the company for future growth. The focus on debt reduction and asset optimization is essential for stabilizing the company's financial health. While the decline of Rynaxypyr poses a significant challenge, the development of new active ingredients offers a potential growth avenue. Investors should closely monitor the outcomes of the strategic review and any asset sales, as these could significantly impact FMC's valuation and market perception.

Pitch Summary:
DSM-Firmenich has recently sold its ANH unit for €2.2 billion plus a €0.5 billion earn-out, aligning with expectations. Despite the market's lukewarm reaction, this divestment significantly enhances the company's financial profile by focusing on growth, higher margins, and increased pricing power. Current cyclical headwinds have driven the share price to low levels, presenting a potential buying opportunity. The upcoming investor day in March is anticipated to reveal a bullish narrative, potentially acting as a catalyst for the stock.

BSD Analysis:
The sale of the ANH unit marks a strategic shift for DSM-Firmenich, allowing it to concentrate on more profitable and growth-oriented segments. This move is expected to improve the company's financial metrics, making it more attractive to investors. Despite current market skepticism, the company's enhanced focus on growth and margin expansion could lead to a re-rating of the stock. The investor day in March is likely to provide further insights into the company's strategic direction and growth prospects, potentially boosting investor confidence.

Pitch Summary:
MercadoLibre is the largest online commerce platform in Latin America, offering an integrated ecosystem spanning e-commerce, payments, logistics, and financial services. The company operates in 18 countries and benefits from strong network effects, brand strength, and deep local market knowledge. While shares were pressured by elevated investment spending and competition concerns, the company continues to gain market share across commerce and fintech. Revenue grew nearly 50% year over year in constant currency, with strong growth in payments, credit, and advertising. Management is intentionally investing to strengthen long-term competitive positioning, and margins have improved materially over the past few years. We believe current market pricing underestimates long-term revenue and cash flow growth, and the shares trade at a compelling discount to intrinsic value.

BSD Analysis:
MercadoLibre enters 2026 at a critical inflection point where it must prove it can convert massive scale into durable margin expansion. After a period of heavy investment in free shipping and logistics to counter Shopee and Temu, investors are now looking for logistics efficiency to drive profitability. Mercado Pago continues to be the group's second engine, with credit growth being carefully monitored to ensure delinquency rates remain under control in a volatile Latin American macro environment. For 2026, the focus is on "operating leverage"—reducing fulfillment costs per order as the infrastructure build-out matures.

Pitch Summary:
Founded in 1997, Netflix is one of the world’s leading internet entertainment platforms and a pioneer of subscription video on demand. The company has over 300 million paid subscribers globally and generates almost 60% of its revenue outside North America. Netflix announced a definitive agreement to acquire Warner Bros., which introduces near-term uncertainty but does not change our long-term investment thesis. We believe Netflix’s scale, brand, content library, and data-driven content creation create high barriers to entry. The proposed acquisition would expand content depth and pricing power over time, while management plans to prioritize deleveraging post-close. Netflix continues to demonstrate improving margins, strong free cash flow growth, and rising ad monetization. We believe current market expectations underestimate Netflix’s ability to compound free cash flow and the shares trade at a significant discount to intrinsic value.

BSD Analysis:
Netflix has successfully pivoted to a high-margin ad-supported model, with ad revenue expected to double to $3 billion by late 2026. Management is guiding for a 31.5% operating margin, though shares have recently been pressured by rumors of a $42 billion acquisition of Warner Bros. Discovery. While subscriber growth remains double-digit, the potential debt load for the WBD deal is the primary risk factor for the year. For 2026, the strategy remains "total TV time" dominance, with Netflix still capturing less than 10% of total viewing in its major markets.

Pitch Summary:
Oracle is a leader in the enterprise software market with a strong market position in database, infrastructure and application software, and cloud-based software and services. We believe the company’s competitive advantages include its large direct sales force, founder-driven management team, and a large installed base of clients with high switching costs. Oracle shares pulled back on concerns around elevated capital expenditures and customer concentration in its RPO backlog, despite long-term revenue visibility improving materially. Contracts with companies including OpenAI, xAI, Meta, and Nvidia contributed substantially to growth in remaining performance obligations. We believe Oracle’s modern cloud architecture, security-first design, and sovereign cloud offerings uniquely position it for AI and regulated workloads. While capital intensity is elevated, we expect capex to normalize over time, resulting in improved free cash flow generation. We believe Oracle’s stock price embeds free cash flow growth assumptions well below our long-term expectations, and shares trade at a significant discount to intrinsic value.

BSD Analysis:
Oracle has initiated a historic $50 billion AI infrastructure build-out for 2026, funded through a massive debt and equity sale. The company is a lead participant in the $500 billion "Stargate" project alongside OpenAI and SoftBank to build the next generation of global data centers. While the high debt load has drawn some skepticism, Oracle Cloud Infrastructure (OCI) is winning major contracts (OpenAI, Meta, TikTok) due to its "lower technical debt" compared to legacy hyperscalers. Investors view Oracle as the "dark horse" of the AI arms race, scaling into proven demand rather than speculative capacity.

Pitch Summary:
Fanuc Corporation is a global leader in the factory automation industry, serving customers in over 100 countries from over 270 service locations worldwide. Today Fanuc is a market leader in each of its three primary operating segments: Factory Automation, Robot, and Robomachine, while also capturing recurring service revenue from its large installed base. A holding since the first quarter of 2020, Fanuc reported quarterly results that were better than consensus expectations for revenue, operating income, and earnings per share, and the company increased revenue and margin guidance for the full year. Shares further responded positively to news that the company was partnering with Nvidia and opening its software platform to others, enabling physical AI and digital twins. We believe Fanuc benefits from its technological leadership, a market-leading base of installed clients that face high switching costs, and a substantial cost advantage versus peers due to vertical integration. Despite cyclicality, we believe rising labor costs and falling automation costs support long-term secular growth. We believe Fanuc’s share price embeds expectations for free cash flow growth that are below our long-term expectations, and the shares are trading at a discount to intrinsic value.

BSD Analysis:
FANUC is pivoting toward AI-driven robotics in 2026, partnering with NVIDIA to integrate "Physical AI" into its industrial arms. The company is addressing global labor shortages with smaller, more agile automation systems that use voice control and force sensing for "safe" human collaboration. A key 2026 catalyst is FANUC’s support for Open Source ROS 2, allowing developers to program industrial hardware using Python. This openness is intended to lower the entry barrier for SMEs and accelerate the retrofitting of existing production lines with intelligent automation.

Pitch Summary:
Shopify is a leading global provider of mission-critical commerce infrastructure that enables retail companies to start, grow, market, and manage a retail business of any size. Shopify’s cloud-based platform offers merchants an end-to-end solution that was previously only available to significantly larger businesses. From a single global storefront, the company offers merchants a multi-channel solution through which they can display, manage, market, and sell products across all sales channels, including web and mobile storefronts, physical retail locations, social media, marketplaces, and other retail formats. The platform enables merchants to sell anywhere and in any language, facilitating cross-border commerce for end customers who can shop using their local currencies, languages, domains, and payment methods. Shopify also provides merchants a single, integrated back-end platform through which merchants can manage and source inventory, process orders and payments, fulfill and ship orders, build customer relationships, leverage reporting and analytic tools, and access financing. With a mission to improve commerce and empower merchants to realize their potential by making a complex process simple, the company has effectively created a retail operating system used by over two million merchants in over 175 countries. A fund holding since the first quarter of 2022, Shopify reported strong quarterly results that were above both consensus expectations and management’s guidance for most key metrics, including gross merchandise volume, revenue, adjusted operating profit, and free cash flow. We believe Shopify’s strong and sustainable competitive advantages include its network and ecosystem, scale, brand, and an installed base of clients for whom its mission-critical platform serves as a retail operating system. We believe current market expectations are substantially underestimating the company’s multiple long-term secular growth drivers and the strength of the company’s business model and competitive positioning. As a result we believe the shares trade at a significant discount to our estimate of intrinsic value and offer a compelling reward-to-risk opportunity.

BSD Analysis:
Shopify enters 2026 with its dominance strengthening, now powering 28% of all U.S. e-commerce websites. While the market is seeing some consolidation (total stores down 0.5%), Shopify's underlying platform grew 18% in the most recent quarter. The company’s revenue architecture is now heavily skewed toward Merchant Solutions (74%), including payments and fulfillment, rather than simple subscriptions. For 2026, the primary focus is the B2B segment and the continued rollout of AI commerce tools that provide merchants with a 40:1 return on their Shopify spend.

Pitch Summary:
Alphabet is a holding company that owns a collection of businesses, the largest and most important of which by far is Google. Google is the global leader in online search and advertising and also offers cloud solutions to businesses and consumers globally, with a goal of organizing the world’s information and making it universally accessible and useful. Google dominates the US and global traditional search market with a greater than 80% share of search volumes. As a function of seeing more searches, Google is able to provide better search results, resulting in a higher customer conversion rate for advertisers and enabling Google to capture a leading share of search revenue. Google’s large network of consumers, advertisers, and publishers is a powerful business ecosystem as third-party participants such as marketing affiliates and independent software vendors add value to the user experience. As a result, we believe consumers get their best and most relevant search results and advertisers get the best returns on their advertising dollars. Such a robust ecosystem attracts increasing numbers of participants and thereby creates a virtuous cycle for a sustainable business model and long-term growth. In its emerging cloud business, we estimate that Google captures less than 10% market share of the global market for public cloud services. We believe Google remains one of the few global companies that has the scale, research and development (R&D), and technical talent to effectively compete in this market over the long term. Non-Google businesses comprise less than 1% of Alphabet revenues and are held in the company’s Other Bets segment. A fund holding since inception, Alphabet reported quarterly financial results that were fundamentally strong and above consensus expectations for revenue, operating income, and earnings per share. The company also announced that it expects to spend $92 billion on capex in 2025, up 8% from its prior estimate and reflective of the opportunities it sees to leverage AI across all of its businesses. Alphabet is seeing the positive benefits of its AI investments in all the core areas of its business, including accelerating search volumes, strong user engagement and streamlined content creation on YouTube as well as the broader advertising business, and faster growth in the company’s cloud business. Total revenue of $102 billion represented a 16% increase year over year in constant currency, while reported earnings per share rose 35%. We believe market expectations underestimate Alphabet’s long-term sustainable growth rate. As a result, we believe the company is selling at a significant discount to our estimate of intrinsic value and offers a compelling reward-to-risk opportunity.

BSD Analysis:
Alphabet reported a blockbuster start to 2026, with annual revenue surpassing $400 billion for the first time. The company has shocked the market with a massive $175 billion to $185 billion CapEx forecast for 2026 to double its AI infrastructure. Google Cloud is the standout performer, growing 48% to a $70 billion annual run rate, while Gemini-integrated tools now write roughly half of the company’s internal code. Despite investor concerns over the high spend, management insists that the expenditures are necessary to capitalize on the "agentic AI" era where AI agents automate complex business workflows.

Pitch Summary:
Tasmea is a specialist services consolidator in Australia, focusing on maintaining essential industrial assets. The company has shown impressive revenue and earnings growth since 2021, driven by its ability to cross-sell services and bundle offerings, leading to higher margins. Despite a recent 30% stock price decline due to acquisition-related risks and skepticism in the Australian resources sector, Tasmea's business model is less cyclical, with a significant portion of revenue coming from non-discretionary activities. The acquisition of WorkPac, although initially met with skepticism, strategically strengthens Tasmea by removing labor bottlenecks and allowing for larger project bids. Insiders own a significant portion of the company, indicating strong management alignment and confidence.

BSD Analysis:
Tasmea's business model focuses on maintenance and uptime maximization, drawing revenue from operating expenditures rather than capital expenditures, which provides stability even in cyclical downturns. The company secures a large portion of its work through Master Service Agreements and Facilities Management Agreements, ensuring a predictable pipeline. The recent acquisition of WorkPac, despite initial market skepticism, strategically positions Tasmea to handle larger projects by internalizing labor logistics, a critical growth bottleneck. Management's significant ownership and disciplined approach to cash flow and reinvestment further align their interests with shareholders. While cyclicality in the resources sector poses a risk, Tasmea's exposure to long-term tailwinds like electrification and infrastructure upgrades offers growth potential.

Pitch Summary:
Galaxy Gaming (GLXZ) is currently trading at $2.00, with a potential upside to the $3.20 deal price if the acquisition by Evolution closes. The deal offers a 60% upside, assuming the merger completes. The market is pricing in a low probability of the deal closing due to regulatory hurdles, particularly in Nevada. However, Galaxy Gaming has a solid standalone business with improved debt terms and a global licensing footprint, providing a decent floor to the stock price.

BSD Analysis:
The main risk to the deal closing is the Nevada Gaming Control Board's new regulatory framework, which complicates Evolution's acquisition due to its exposure to grey markets. Despite this, both New Jersey and Pennsylvania have cleared Evolution of any wrongdoing, suggesting that Nevada's concerns might be addressable. Evolution's management has indicated that the Galaxy acquisition is not critical enough to warrant exiting profitable markets, which could lead to the deal's termination if Nevada imposes stringent conditions. However, the standalone value of Galaxy Gaming, with its refinanced debt and global reach, makes the current stock price seem overly punitive.

Pitch Summary:
Neo Performance Materials is well-positioned to capitalize on the rising prices of neodymium, a key component in many high-tech applications. The company's strategic positioning allows it to benefit from the diversification of supply chains away from China, enhancing its market opportunities. Neo's focus on rare earth materials positions it for sustained growth in a rapidly evolving market.

BSD Analysis:
Neo Performance Materials' expertise in rare earth materials, particularly neodymium, positions it advantageously amid rising demand and prices. The company's strategic focus on diversifying supply chains away from China aligns with global efforts to secure critical materials, enhancing its competitive position. Neo's ability to adapt to market dynamics and capitalize on emerging opportunities underscores its potential for long-term growth. As the demand for rare earth materials continues to rise, Neo is well-equipped to meet market needs and drive shareholder value.

Pitch Summary:
AMG is poised to benefit from the rising demand for lithium and vanadium, driven by the global shift towards renewable energy and electric vehicles. The company's upcoming status as the only chrome metal producer in the USA from Q2 2026 provides a strategic advantage, reducing dependency on Chinese imports. This vertical integration enhances AMG's market position and growth prospects.

BSD Analysis:
AMG's strategic focus on critical materials like lithium and vanadium aligns with the increasing global demand for renewable energy and electric vehicle components. The company's forthcoming position as the sole chrome metal producer in the USA marks a significant milestone, offering a competitive edge by minimizing reliance on Chinese imports. This strategic move not only strengthens AMG's supply chain resilience but also positions it as a key player in the critical materials market. The company's vertical integration strategy is expected to drive long-term growth and enhance shareholder value.

Pitch Summary:
5N Plus has been awarded an $18 million contract by the US Pentagon to secure the supply of germanium, a critical metal for infrared optics and space solar cells. The company is expanding its production capacities to meet this demand and is benefiting from the 'friendshoring' trend, where countries are relocating critical supply chains to allied nations. Analysts have raised their price targets, reflecting confidence in the company's growth prospects.

BSD Analysis:
5N Plus's strategic positioning in the semiconductor industry, coupled with its recent contract with the US Pentagon, underscores its critical role in securing essential materials for high-tech applications. The company's expansion efforts align with the broader geopolitical trend of 'friendshoring,' which aims to reduce dependency on non-allied nations for critical resources. This strategic alignment not only enhances 5N Plus's growth potential but also positions it as a key player in the global supply chain realignment. The raised price targets by analysts indicate strong market confidence in the company's future performance.

Pitch Summary:
Viromed Medical has seen a significant increase in its stock price, driven by anticipation of groundbreaking findings on the treatment of lung diseases using cold plasma technology. The upcoming press conference at Hannover Medical School is expected to reveal data that could establish Viromed as a standard in pneumology. The recent changeover to registered shares has also increased transparency for institutional investors, potentially attracting more investment.

BSD Analysis:
Viromed Medical's innovative approach in cold plasma technology positions it at the forefront of medical advancements in treating lung diseases. The market's anticipation of the upcoming press conference suggests high expectations for the company's research outcomes. If successful, Viromed could secure a significant market share in pneumology, providing a strong growth trajectory. The transition to registered shares enhances investor confidence and could lead to increased institutional interest, further driving the stock's performance. However, the company's future success heavily relies on the forthcoming research results meeting market expectations.

Pitch Summary:
FinecoBank contributed to performance due to its strong results in November and client activity. Net income beat the consensus forecast, with resilient revenues and engagement aided by a favorable macroeconomic backdrop.

BSD Analysis:
FinecoBank enters 2026 following three consecutive years of record new client acquisitions, with January alone seeing over 22,000 new clients. The bank's business model is shifting toward high-margin "Investing and Brokerage" income, which rose 13% to offset an 11% decline in net financial income caused by lower interest rates. Management has proposed a €0.79 dividend per share and maintains an industry-leading cost/income ratio of 27.1%. For 2026, the focus is on a new multi-year plan to be unveiled at the March Capital Markets Day, targeting further acceleration in net sales and ETF monetization.

Pitch Summary:
Elsewhere in the industrials sector, GE Vernova was another meaningful overweight at year-end. The company is a global leader in the electric power industry. Its largest division makes gas turbines, which are used to generate electricity. Amid the global push toward electrification and decarbonization – including supplying the world's increased power needs due to the advent of generative AI – Vernova appears well positioned.

BSD Analysis:
GE Vernova has solidified its status as the premier "pure-play" energy transition leader in early 2026, with its stock trading between $650 and $720—a massive 450% surge since its 2024 spin-off. The company is a primary beneficiary of the "Electrification Supercycle," fueled by a $125 billion data center development pipeline and the global push for carbon-neutral power. Management is focusing on its high-margin Power segment and the rapidly expanding Electrification arm, which provides essential grid hardware like transformers and HVDC systems. The primary catalyst for 2026 is the acceleration of Nuclear Small Modular Reactors (SMRs), with the first commercial units expected to trigger a wave of global orders.