Investment Pitches

Pitch Summary:
The company's leading weight-loss drug candidate has no chance of competing against other drugs; several other drugs proved superior weight loss; phase-3 trial is unlikely to be successful;

BSD Analysis:
Altimmune’s valuation is tied almost entirely to its GLP-1 candidate pemvidutide. Bears see it as undifferentiated in a market dominated by Novo and Lilly. Without clear clinical or commercial edge, financing risk looms. Limited pipeline depth leaves binary risk tied to trial outcomes. GLP-1 enthusiasm inflates valuation, but execution hurdles and dilution are significant.

Pitch Summary:
This quarter’s portfolio update covers our position in Interactive Brokers Group, Inc. class A common stock (NASDAQ: IBKR), a compounder investment. We have held IBKR since inception with a few trims and additions along the way. Through the end of 2023, our position in IBKR has delivered a 13.7% internal rate of return. Interactive Brokers is a highly automated global securities firm that specializes in routing orders and processing trades in securities, futures, foreign exchange instruments, bonds and mutual funds on more than 150 electronic exchanges and market centers around the world. Interactive Brokers custodies and services accounts for hedge and mutual funds, registered investment advisors, proprietary trading groups, introducing brokers and individual investors. More than two-thirds of IB’s customers are based in Europe and Asia and an even greater share of its new customers come from those regions. Conditions in financial markets affect the financial results Interactive Brokers delivers in any given year. Generally speaking, Interactive Brokers generates more net interest income and commission revenue when interest rates and equity market volatility are high and less when those variables are low. The interest rate environment was a tailwind for IB’s results in 2023. Due to the Fed’s historically aggressive tightening campaign from early 2022 through mid-2023, the daily average effective federal funds rate increased from 1.69% in 2022 to 5.03% in 2023. That helped IB’s net interest margin expand from 1.53% in 2022 to 2.36% in 2023. Combined with 8.2% growth in IB’s average interest-earning assets in 2023, that increase in net interest margin helped IB’s net interest income grow a whopping 67.5% to $2.8 billion in 2023 from $1.7 billion the prior year. In contrast, trading conditions were a headwind. Equity market volatility in 2023 was below historical averages, which weighed on commission growth. The impact of changes in financial market conditions on IB’s revenue and earnings in a given year can obscure the degree to which Interactive Brokers is making progress growing its normalized earning power and intrinsic value. A helpful way to cut through that noise is to focus on growth in IB’s total customer equity. IB’s total customer equity ended 2023 at $426.0 billion, up 38.9% from $306.7 billion at the end of 2022. That growth came from the combination of a 22.5% increase in the number of customer accounts and an increase in the average value of customer accounts due to the rebound in global equity markets. Although Interactive Brokers has delivered strong operating results over the past several years, IBKR has only slightly outperformed the S&P 500 since the end of 2019. The increase in the market price of IBKR since the end of 2019 has not even kept up with the increase in the company’s intrinsic value. Two main factors have weighed on market sentiment: uncertainty around normalized earnings due to volatile macro conditions and fear that IBKR will underperform as the Fed cuts rates. The good news is that both of these concerns should fade over the next few years as the economy, financial markets and monetary policy settle into a new, post-pandemic normal. As those clouds dissipate, the light of Interactive Brokers rapidly growing intrinsic value should increasingly shine through to its stock price.

BSD Analysis:
Interactive Brokers starts 2026 on the heels of a record-breaking 2025 where its clients on average outperformed the S&P 500 Index. The company has introduced significant technological catalysts for the current year, including 24/7 account funding with stablecoins and expanded access to the Brazilian B3 exchange to capture emerging market demand. For 2026, the investment case is bolstered by an "economic reacceleration" theme, where IBKR’s low-cost structure is expected to attract high-frequency and institutional hedge fund accounts in a diversifying market. Management is prioritizing 24/7 availability across 170 global markets, positioning the platform as the primary beneficiary of the "retail-plus" shift in global trading volumes. With a fortress balance sheet and industry-leading execution quality, IBKR remains the top-tier play for investors seeking exposure to global capital flow rebalancing.

Pitch Summary:
We bought our position in the Texas-focused oil & gas logistics company that fabricates, rents and maintains gas compression equipment while shares were trading at discounts of up to 45 percent of tangible book value, reportedly due to a large shareholder exiting its position. While rising debt loads, executive turnover and declining natural gas prices were negatively impacting sentiment toward the small company, we believed investors were misreading the fundamentals. We concluded that the company was in experienced hands, and realized that debt was being incurred to support significantly increased levels of profitably contracted compression business, which would soon begin to impact the income statement as the newly fabricated compression equipment was placed into service. Shares increased by approximately 55 percent in the second half of the year as investor sentiment brightened amid substantial improvements in reported financial results. Despite the recent gains, we believe shares remain undervalued, and currently intend to maintain our holdings. At year-end, NGS shares represented 3.65 percent of Fund assets.

BSD Analysis:
Natural Gas Services Group is currently seeing a sustainble upward trend in 2026, with a bullish analyst consensus and price targets implying double-digit upside from current levels. The company's investment case is anchored by its strong cash flow momentum and a strategic focus on high-horsepower compression equipment, which is in high demand for Permian Basin production. Recent financial results highlight expanding operating margins and a healthy return on equity, supported by a 24% year-over-year growth in net income. Analysts at major firms have maintained buy ratings, citing the firm's ability to maintain high utilization rates and pass through inflationary costs to a blue-chip customer base. As a low-beta energy services play, the company offers a defensive way to capitalize on the sustained volume growth of North American natural gas. With its 52-week highs frequently tested, Natural Gas Services Group is well-positioned for continued market outperformance throughout the year.

Pitch Summary:
Among these, our investments in steel manufacturers were among the most positively impactful to performance in 2023. Two Canadian blast-furnace hot-rolled coil producers, Stelco (STLC-CA) and Algoma Steel (ASTL-CA), bolstered 2023 Fund performance in 2023 by 0.79 and 1.65 percentage points, respectively. Both companies have emerged from financial restructurings in recent years, and have successfully cleaned-up their balance sheets, an act made much easier with strong steel market conditions in 2021 and 2022 that enabled the generation of significant operating cash flow. While steel market conditions have now descended off peak levels, hot rolled coil prices generally exhibited stable pricing dynamics in 2023, despite the demand hiccup caused by the big-three automaker strike. Stelco and Algoma are still managing to generate strong operating cash flows relative to their market capitalizations, although Algoma is engaged in a significant capital project to expand capacity and convert its steel-making process over to electric arc furnace smelting, which is requiring heavy capital investment in 2024. Both companies continue to trade at inexpensive valuations that remain well beneath the replacement cost of the assets.

BSD Analysis:
Algoma Steel Group is a high-conviction value play in 2026, currently trading at a significant discount to its intrinsic value as it nears the completion of its transformational electric arc furnace (EAF) project. The company recently gained further market attention following a strategic agreement with Hanwha Ocean for the Canadian Patrol Submarine Project, which includes a potential $250 million package for mill investments. While the firm has faced short-term net losses, technical indicators have inflected positively, with volume and price momentum signaling a potential breakout as the market anticipates a return to profitability. Analysts highlight the massive valuation gap, with the stock’s current price representing a steep discount to future cash flow estimates once the cleaner, more efficient EAF operations are fully online. Algoma’s pivot toward sustainable steelmaking and its strategic role in national defense projects position it as a unique industrial compounder. The stock offers substantial upside for investors willing to look past near-term volatility toward a more efficient and profitable future.

Pitch Summary:
Equinox shares were up 48.5 percent over the year, adding 1.53 percentage points to Fund returns as construction on the company’s Greenstone project progressed almost to the point of full completion. Fortunately for Equinox, mine construction has proceeded both on-schedule and on-budget, relieving investors previously concerned over potentially costly project overruns and delays. Over the year, our Fund’s precious metals mining positions were respectable contributors to overall Fund performance, adding 1.84 percentage points in aggregate returns. This group of holdings was anchored by positions in four large precious metals producers: Minera Alamos (MAI-V), Orezone Gold (ORE-TO), Centerra Gold (CG-TO) and Equinox (EQX). Together, these four holdings comprised 13.7 percent of Fund assets at the start of 2023.

BSD Analysis:
Equinox Gold is entering 2026 in a transformed financial and operational state, having successfully ramped up its cornerstone Canadian assets, Greenstone and Valentine. The company's 2026 guidance anticipates substantial production growth, with Greenstone alone expected to contribute between 250,000 and 300,000 ounces at competitive sustaining costs. This production surge has allowed the firm to significantly reduce net debt while initiating its inaugural quarterly cash dividend and a share buyback program. Management’s clear focus on cost control and disciplined capital allocation is driving a re-rating of the stock toward top-quartile valuation levels. With nearly 80% of its asset value now concentrated in tier-one North American jurisdictions, the company offers a much lower risk profile than in previous years. Equinox is now firmly established as a premier mid-tier producer with a visible path to exceeding one million ounces of annual gold production.

Pitch Summary:
Centerra Gold shares were also up, climbing 15.3 percent over the year, adding 0.68 percentage points to Fund returns as the company received regulatory approvals from the Turkish government to allow its Oksut mine to resume gold processing operations. The Turkish mine had suffered a costly shutdown and a difficult re-permitting process after arsenic was found leaking in the gold-room, requiring a refurbishment of the processing equipment. With the resumed Turkish operations in 2023, company cash flows and market sentiment towards Centerra markedly improved. Over the year, our Fund’s precious metals mining positions were respectable contributors to overall Fund performance, adding 1.84 percentage points in aggregate returns. This group of holdings was anchored by positions in four large precious metals producers: Minera Alamos (MAI-V), Orezone Gold (ORE-TO), Centerra Gold (CG-TO) and Equinox (EQX).

BSD Analysis:
Centerra Gold has emerged as a consensus favorite in early 2026, receiving a moderate buy rating from analysts who point to its diversified production base across North America and Türkiye. The company’s 2026 outlook is bolstered by the reliable performance of the Mount Milligan and Öksüt mines, which serve as primary engines for strong free cash flow. With a healthy net cash position and a disciplined capital allocation strategy, Centerra is well-positioned to fund its organic growth pipeline, including the Goldfield District and Kemess projects. Analysts have recently raised price targets, citing the firm's resilience in a volatile commodity environment and its successful integration of ESG-focused mining technologies. The stock is increasingly viewed as a barometer for investor sentiment in the mid-tier gold sector, offering both defensive stability and growth potential. As gold remains a preferred safe-haven asset, Centerra’s operational flexibility and strong balance sheet make it a standout investment choice.

Pitch Summary:
Orezone Gold most negatively impacted the Fund’s performance in 2023, with the position costing the Fund 1.30 percentage points. Shares of the Canadian mining company, with a single producing mine in central Burkina Faso, dropped 31.1 percent in 2023 as investor sentiment towards the West African country rapidly soured. Burkina’s geopolitical environment has been deteriorating following a series of coup d’etas that initially overthrew the country’s President and later resulted in the expulsion of French military units from the country amid widespread anger and frustration over the inability of Burkina’s armed forces to deal effectively with ISIS related terrorist groups that have wreaked havoc across large swaths of the Country’s northern and eastern provinces. While the civil unrest in the country is disconcerting, Orezone’s Bombore mine lies in close proximity to the country’s capital city and appears to be located well within a zone comfortably controlled by the country’s military. Indeed, the company appears to enjoy strong governmental backing and is contemplating a high-return, $170 million brownfields expansion of its operations, which has the potential to grow production by more than 50 percent and generate at current gold prices close to $200 million per year in operating cash flow starting in 2026. Considering Orezone trades at a $215 million market cap and envisions the expansion to be largely self-funded, we consider the risk/reward prospects quite appealing. Management is heavily invested in the company and has a strong historic record of shareholder value creation. Furthermore, the company’s land concession appears to hold strong near-mine prospects for reserve growth that could be substantially additive to mine economics. We currently intend to ride-out the difficult political conditions in Burkina and maintain our position in Orezone, which represented 2.74 percent of Fund assets at year-end.

BSD Analysis:
Orezone Gold is demonstrating strong technical and operational momentum in early 2026, with the stock recently showing a consistent upward trend and strong buy signals from major moving averages. Analysts highlight the company’s flagship Bomboré mine as a cornerstone asset that continues to benefit from the prevailing bullish gold market, with short-term price forecasts suggesting significant upside potential. While the stock is categorized as high-risk due to inherent mining volatility, its increasing trading volume and higher liquidity are reducing general investment risks. Management is focused on maintaining steady production while exploring expansion opportunities to further enhance the net present value of its core West African holdings. Support levels at $1.69 provide a technical floor for investors looking to capitalize on corrections in a broader rising trend. For those seeking leveraged exposure to gold, Orezone offers a disciplined operational track record and a clear path toward sustained cash flow generation.

Pitch Summary:
Minera Alamos shares declined 25.7 percent, costing the Fund 0.90 percentage points. Shares in the Mexican mining concern, which has one small heap leach project in operation and another highly economic project at the permitting stage, came under selling pressure amid a difficult seasonal draught as well as a number of government permit processing delays, which impacted gold production volumes and resulted in production ramp-up delays. While the draught has reportedly now ended, allowing its operating mine to re-start, the required regulatory permits necessary to effectively further build-out each mine remain unissued. While we are concerned with the growing difficulties and delays mining companies are facing doing business under the increasingly bureaucratic Mexican administration, we currently intend to maintain our position in Minera Alamos as the well-experienced, Mexico-focused management team is hoping and expecting to see permits approved within the short-term. Minera Alamos’ President also appears to be backing his expectations with his pocketbook, purchasing Minera shares in the open market.

BSD Analysis:
Minera Alamos has entered 2026 with a significantly strengthened operational profile following the early integration of the Pan Operating Complex in Nevada. The company’s 2026 guidance for the Pan mine targets gold production between 32,000 and 38,000 ounces, supported by a strategic shift to a new mining contractor to enhance fleet productivity. While all-in sustaining costs (AISC) are projected in the range of $1,850 to $2,000 per ounce due to increased waste stripping and higher royalties, these investments are designed to unlock future expansion and extend mine life. A substantial non-sustaining capital budget of $13.5 million for capitalized stripping at the South pit underscores management's commitment to long-term scalability. With a robust cash balance and ongoing optimizations to capitalize on the current high gold price environment, Minera Alamos is successfully transitioning into a multi-mine producer. The stock remains a compelling growth play as the company leverages its low-capital intensity model to build a diversified mid-tier mining platform.

Pitch Summary:
The company is facing an existential crisis - broken business model; terrible accounting practices; persistent lack of profits; rising debt level; target price - zero;

BSD Analysis:
Sotera provides sterilization services, including EtO sterilization under litigation and regulatory scrutiny. Liability exposure is material, with potential multibillion-dollar settlements. While end-market demand is stable, the legal overhang caps valuation and leverage compounds risk.

Pitch Summary:
Taking advantage of the government tax schemes; both co-CEOs resigned due to possible regulatory actions against their involvement in a massive PPP loan fraud; the PPP partner Blue Acorn is already under criminal investigation;

BSD Analysis:
P10 aggregates private-market strategies but faces scale disadvantages, fee pressure, and reliance on acquisitions. Fundraising is slowing as LPs retrench. Performance fees are unpredictable, while acquisition debt limits flexibility. Critics view it as a fee aggregator without durable differentiation.

Pitch Summary:
Overvalued (trading at 23% premium to its peers); further dilution due to cash position barely covering one month of cash burn; declining retention rate of clinicians; shareholders filing a lawsuit for untrue financials; insiders are cashing out;

BSD Analysis:
LifeStance built a large mental health clinic network via acquisitions, but the model is fragile. Integration costs, clinician churn, and reimbursement constraints keep margins under pressure. Telehealth is competitive and capital intensity is high. Growth looks impressive, but cash flow is weak.

Pitch Summary:
Canadian National Railway operates an 18,600-mile transcontinental rail network spanning Canada and the U.S. Like other Class I railroads, CNI benefits from massive economies of scale, NIMBY restrictions, and a century of supply rationalization that make new competitive rail construction impossible. Deregulation and consolidation flipped pricing trends from decades of real declines to two decades of steady real increases. Railroads’ superior energy and labor efficiency versus trucking make them dominant on long-distance freight routes. CNI is favored over U.S. rails due to faster long-term volume potential, less coal exposure, and lower regulatory risk in Canada, where oligopolies are more accepted.

BSD Analysis:
Canadian National Railway is essentially the textbook example of what happens when a critical piece of national infrastructure becomes an entrenched oligopoly with no realistic threat of new entrants. Its 18,600-mile transcontinental network gives it scale advantages that trucking and regional rail simply cannot match, especially on long-haul freight where energy and labor efficiency tilt overwhelmingly in rail’s favor. The industry’s century-long consolidation and the political impossibility of laying new track mean CNI’s competitive moat is less a “moat” and more a fortified wall. Since deregulation, pricing power has steadily improved, reversing decades of real price declines and creating a multi-decade backdrop of rising yields and disciplined capacity management. CNI stands out among North American rails because it has better long-term volume potential, less dependence on shrinking coal freight, and a more predictable regulatory environment. Canada simply tolerates concentrated rail power in a way the U.S. does not, giving CNI more room to operate without headline risk. As supply chains grow more complex and shippers demand reliability over brute speed, CNI’s network strength and structural advantages keep it positioned as a long-duration compounder in an industry built for incumbents.

Pitch Summary:
Nextage presents an attractive investment opportunity due to its unique position in the Japanese used car market, which is characterized by repeat customer interactions due to mandatory safety checks. Despite recent negative media coverage and internal misconduct issues, the company's fundamentals remain strong. The return of the founder as CEO and the continued support from banks highlight confidence in Nextage's recovery and growth potential. The company's strategy of expanding large-size stores and focusing on lifetime customer transactions is expected to drive significant earnings growth. With a target price range of Y3,000 to Y3,540, the stock is poised for a 30-50% increase over the next twelve months, supported by a projected 20% annual earnings growth.

BSD Analysis:
Nextage's ability to differentiate itself from competitors like Big Motor and Idom lies in its strategic focus on large-format stores and direct consumer interactions. The company's decision to eliminate sales incentives and adopt a team-based approach aims to enhance customer experience and employee retention, potentially stabilizing add-on sales. The used car market in Japan is fragmented, but Nextage's strong capital position allows it to aggressively expand its store network, capturing market share. The company's historical commitment to its strategy and the founder's leadership provide a solid foundation for future growth. However, investors should monitor the stabilization of add-on sales and the company's ability to meet its revised EBIT targets.

Pitch Summary:
A recent example would be Aritzia, which despite contributing positively in the fourth quarter was a material detractor over the year. In early 2023 we wrote about the importance of investing as an owner, and discussed the headwinds Aritzia was facing as it spent on infrastructure to support the significant growth it had seen the past few years. Unfortunately, there were additional setbacks that the business announced in May 2023. Aritzia had started to see market share losses due to a lack of innovation, which in combination with declining consumer confidence, led to the share price declining 40% in the year. Many of you would have heard us explain how we diligence the people separate from the business, and Aritzia is no exception. As investors with an ownership mindset, we spend a lot of time building relationships with management teams in both good times and bad in order to better inform our decision making. Aritzia’s management had been catching up on necessary investments following a period of exceptional growth, with its U.S. and eCommerce businesses more than tripling since the onset of the pandemic. For context, it took Aritzia 35 years to reach $1 billion in sales in North America, but less than 3 years to add an incremental $1 billion in sales! Aritzia historically has been disciplined in its growth journey and a very good steward of capital ($3.7B market capitalization and $1.6B of capital invested). Looking forward, we are confident that Aritzia is set to get back to doing more of the same. With the bulk of its investments approaching the rear-view mirror, profitability and cash flow is set to recover and inventory levels have recently normalized to healthier levels. As we discussed in early 2023, we invest like owners, and we view Aritzia’s investments constructively as they provide the business with a strong foundation to continue to build upon in the years to come. While Aritzia was a material detractor to performance, it is exactly the opportunity we seek to capitalize on as long-term investors.

BSD Analysis:
The company has spent heavily on distribution, systems and U.S. growth, depressing near-term earnings but positioning the brand for structurally higher sales and margins once investment normalizes. On current estimates the shares trade on a mid-20s forward P/E and high-teens EV/EBITDA for a business that consensus expects to grow revenue at a mid-teens pace over the medium term, with significant operating leverage as new stores ramp and e-commerce scales. Management and insiders retain meaningful equity exposure and have been disciplined historically on capital allocation, favouring organic growth over dilutive deals. We see catalysts from margin recovery as inventory normalizes, continued U.S. store openings, and potential multiple re-rating as execution improves and investors gain confidence that recent market share losses were transient. Overall we view Aritzia as a high-quality, vertically integrated apparel retailer with an attractive runway in the U.S. and a temporarily depressed earnings base.

Pitch Summary:
The store-wide health crisis is coming: the company is only focused on store growth at the expense of the health requirements at current stores (declining health standards, food safety issues, Update 2/6 - Follow-up report: Food illness outbreak is inevitable.

BSD Analysis:
CAVA is executing a fast-casual rollout with strong AUVs, digital mix, and four-wall margins, but the model is at a prove-it phase on national scale. Peak unit economics from early markets may step down as new geographies open with higher build costs, longer ramp, and tighter labor. Commodity exposure (produce, oils, proteins—especially lamb) can swing COGS, and traffic is sensitive to price after several rounds of menu increases. Throughput hinges on ops discipline and maintaining freshness at volume. Valuation assumes sustained high-teens unit growth and stable restaurant-level margins; any deterioration in comps or new-unit returns hits the DCF hard.

Pitch Summary:
Deceptive ads; 20% of the sales is spent on marketing; slowing market penetration; series of accounting problems; top holders are from HK and insiders are cashing out;

BSD Analysis:
Celsius is a high-growth energy drink brand riding distribution leverage from its PepsiCo partnership. The engine is velocity gains in convenience/grocery and rapid shelf expansion, but the setup is exposed to category normalization after a multi-year boom. Gross margins benefited from price/mix and scale, yet promo intensity is creeping up as Red Bull, Monster, and newer entrants defend space. International is early and cost-heavy; trial needs sustained repeat to justify slotting and media. Litigation/claims risk around “thermogenic” marketing is a lingering overhang, and the working-capital cycle tightens as inventory builds for new doors. Equity embeds years of double-digit share gains; any slowdown in scanner data or higher trade spend can knock the multiple hard.

Pitch Summary:
For-profit university with fast and loose admissions to take advantage of federal student loan disbursements; enrollment trends in multi-year decline; upcoming regulations; graduation rates are below average; $1.5 bil acquisition should be written off;

BSD Analysis:
Adtalem operates healthcare-focused universities. The bear case points to dependence on Title IV funding, aggressive recruiting, and high tuition. Enrollment growth is uneven, and regulatory scrutiny is a constant risk. Acquisitions add goodwill and integration concerns. Downside if enrollment dips or oversight tightens.

Pitch Summary:
We sold shares of KBR, Marvell Technologies, and Schlumberger in Q4. We are still bullish on KBR and Marvell, but sized down due to portfolio constraints. SLB is a company we’ve liked for a long time and continue to believe it is the strongest player in oil field services. However, we believe the outlook for oil prices is not supportive of higher prices for the stock in the near term, given: • OPEC+’s call for cuts of an additional million barrels a day are voluntary. • U.S. Energy Information Administration reported that U.S. crude and condensate production increased to 13.24 million barrels a day in September.

BSD Analysis:
SLB, formerly Schlumberger, enters 2026 as a redefined technology-driven energy solutions company following the successful integration of ChampionX. The firm has guided for 2026 revenue between $36.9 billion and $37.7 billion, with adjusted EBITDA expected to hit a range of $8.6 billion to $9.1 billion. Management is prioritizing the recovery of international markets, specifically predicting a rebound in Middle Eastern rig counts and a surge in Latin American offshore activity. A standout catalyst for 2026 is the company’s digital segment, which is targeting a $1 billion annual revenue run rate for its data center and AI business by year-end. SLB is currently leveraging its "One Subsea" venture to target cumulative bookings exceeding $9 billion over the next two years as deepwater activity inflects. The board has approved a 3.5% increase in the quarterly dividend to $0.295 per share, supported by a plan to return over $4 billion to shareholders in total. Despite range-bound oil prices, SLB’s shift away from capital-intensive drilling toward high-margin production services and carbon management solutions is providing significant margin stability. This "capital-light" strategy is expected to yield over $2.4 billion in share buybacks this year, reinforcing SLB's position as a premier global energy compounder.

Pitch Summary:
For as long as Netflix has been around, the company was still able to grow quarterly operating income by 25% year-over-year, reaching 1.92 billion in the latest earnings filing from $1.5 billion to $1.8 billion (in Q3 2023) • Free cash flow in 2023 is estimated to be $6.5 billion, which was generated in spite of writer’s strikes and blew past company projections for $5 billion • Operating margins of ~20% put Netflix well ahead of peers in entertainment and communications services, and is also higher than the Magnificent Seven’s average • Increased share buyback authorization of $10 billion should return equity to shareholders in 2024 • Netflix added 13.1 million new subscribers in the December quarter, well surpassing estimates of 8.97 million

BSD Analysis:
Netflix has officially entered a transformative era in 2026 following the announcement of its $82.7 billion acquisition of Warner Bros. Discovery’s studio and streaming assets. The company enters the year with over 325 million paid memberships, having successfully transitioned to a hybrid model that prioritizes advertising revenue alongside subscriptions. Management forecasts 2026 revenue to range between $50.7 billion and $51.7 billion, representing healthy organic growth of 12% to 14%. A primary narrative for the year is the expected doubling of advertising sales, which has become a "margin savior" as mature markets face subscriber saturation. Strategic initiatives for 2026 include a deeper push into live events, such as the World Baseball Classic, and the scaling of a cloud-first gaming strategy. While the Warner acquisition introduces a slight drag on margins, the company is still targeting a robust 31.5% operating margin for the fiscal year. Share repurchases have been temporarily suspended to preserve liquidity for the deal, signaling a more conservative approach to capital allocation during the integration phase. Content production has fully recovered from previous industry strikes, allowing for a strong slate of branded originals to drive healthy engagement levels throughout the year.

Pitch Summary:
Twitter thread: We are short Jin Medical International Ltd $ZJYL, a China Hustle-style charade. Jin sells wheelchairs and parts in China. In 2022, its revenues fell 8% to just $19M. $ZJYL trades at ~45x revenues. At reasonable "peer" levels of 1-6x sales, $ZJYL shares fall 90% or more.

BSD Analysis:
Jin Medical designs and manufactures wheelchairs and mobility aids in China, exporting primarily to Europe and North America. The short thesis highlights governance concerns, limited scale, and customer concentration. Growth claims are ambitious relative to the small revenue base, and disclosure quality leaves gaps around profitability and cash flow. Competition is intense in low-tech medical device markets, where incumbents have scale and established distribution. The thin float and small market cap make it susceptible to volatility and sharp squeezes unrelated to fundamentals.