Activable Stock Opportunity: Special situation with a potential return of 13% in less than 2 months.

We unveil the new company we have bought: Italian microcap with a potential takeover bid that can be exercised before August 5, 2023.

We know that most of you are investors and that, in a bear market like the one we are in, where to invest the capital is analyzed in detail.

Therefore, we want to make it easy for you and offer a 40% discount on the monthly and annual subscription .

In this way you will optimize your capital and for only €7.49 per month (prorated annual plan) you will receive investment ideas and theses every week.

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Since we launched the substack in May 2022, we have received 5 OPAs in our portfolio ; Sourcesense , Umanis, Kape Tech , Majorel the last one with a 43% premium or Sababa , a company very similar to today's, and which we received a takeover bid in less than 1 week after publishing it.

The unknown company that we will reveal today is dedicated to offering cybersecurity services and products . It is very similar to companies that we have already published, such as Cyberoo , which we currently have in our portfolio, or the aforementioned Sababa , which we sold after a takeover bid.

As we already discussed in the Thesis of Cyberoo and Sababa, these types of companies are growing at double digits and are expected to continue at this rate in the next 3-5 years, due to the strong demand for their services. In turn, they have a double catalyst, and it is the expansion of their margins as they gain scale and begin to leverage their software products . (This will be explained in today's thesis). To put it in perspective, currently in 2023, Cyberoo has an EBITDA margin of 43% and today's company with 36% , with an estimate of growth thereof of at least +20% per year for the next 3-5 years.

But the most relevant of the idea that we share today, is the special situation that has been created due to the inefficiencies of the market in small companies and in Italy . There is a potential takeover bid for today's company, already communicated by both companies, which must be exercised or not before August 5, 2023. The price estimated by both parties should be around at least + 13% compared to the current price.

Next, we will specifically explain the details of the operation and we will argue why (as we already communicated to subscribers via chat on Monday ) we have decided to start a small position in this company, a special situation that we expect to resolve in less than 2 months.

The ratios and ingredients of the unknown thesis nº 39 are the following:

·       Sales growing by +16.2% and EBITDA by +20%.

·       ROE 20%

·       EBITDA margin 36% and EBIT of 28%

·       10% FCF margin

·       FCF EBITDA conversion of 28%

·       Without debt: Debt/EBITDA -1x

·       Potential takeover bid with a 13% premium with a catalyst in less than 45 days

Without further to add, we leave you with the new company that we have added to the Quality Value portfolio!

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