Neighbourly Pharmacy (NBLY) – Merger Arbitrage – 16% Upside This is an intriguing non-binding stage merger arbitrage opportunity in Canada. While the market is skeptical about transaction closing, I think there is a solid chance that the situation will successfully play out in the coming weeks or months. NBLY is a C$700m market cap Canadian
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1) 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. 2) $ZJYL went public in March 2023, underwritten
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We saw Jason Wild of [Terrascend (TSND.CN)] gobbling up stock all of 2023. This [month] we note insiders bought at Tilray Brands (TLRY). Granted it’s not a pure play cannabis company anymore (they bought a craft beer basket from BUD in 2023, e.g. ShockTop, RedHook, etc), but the CFO’s spouse bought ~$37K worth, the CEO
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I speak a lot about hidden values in spinoffs, but this is a great place to hunt for value that a few key investors investigate. Spinoffs are sometimes called ‘orphan securities.’ The definition pertains to a stock or other financial instrument that industry analysts do not routinely monitor or cover. As a result, these securities
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Ocean Wilson (OCN:L, £350m) Ocean Wilson is an investment company with two key holdings: OWIL, a fund of funds, and a 57% stake in publicly-listed Wilson Sons, one of the largest providers of maritime services in Brazil. OCN is currently trading at a 50%+ discount to NAV. However, unlike in a regular [sum of the
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I’m looking with much interest into the upcoming Solvay split. On December 11, Solvay will split its business in a commoditized chemicals part (maintaining the name Solvay) and a ‘specialty’ chemicals part (to be called Syensqo). I believe the split could unlock significant value as the market seems to greatly underestimate the current SOTP value.
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