By VWArticles. Originally published at ValueWalk.
ValueWalk is at the NYSSA Annual Ben Graham Conference today. Below are notes from the speakers. Check back as we will have a lot more in the coming hours. These notes are from one of our favorite hedge fund managers: Jason Karp – Tourbillion Capital Partners on his best ideas he pitched a long thesis for SunOpta
Rupal Bhansali – informal notes from the pitch below
Millennials – more health conscious and less concerned about price; more quality conscious and less brand conscious
-peak spending is between ages of 40-50 and in fifteen years peak spending;
-organic is 12% growth over last ten years; expect share of natural and organic to go up dramatically; rise of in home and carried from home;
-huge shift from generic to private label but quality has gone up
-pitching long on SunOpta (STKL); largest source of organic ingredients; they make private lable organic products;
-13 D filer and oak tree took 11% stake in the company; massive insider buying
-at nadir they were doing .5 billion of revenue on 1% margin versus competitors at 8% margin;
-expect market to grow 3x
-expects ebitda to double; incremental margin is 25%;
-expects to go from $80mm in ebitda in 2017 to 200mm in ebitda in 2020
-50% of shares locked up
The post Jason Karp – Tourbillion Capital Partners – long on SunOpta On Millenials appeared first on ValueWalk.
Sign up for ValueWalk’s free newsletter here.
