Latest Posts

The legalization of marijuana is one of the biggest growth stories in our lifetime. MariMed (OTCQX:MRMD) represents a great play in this ongoing saga. The company is an under-the-radar marijuana dispensary operating in Illinois and Massachusetts. It stands out on a valuation and operating efficiency basis with one of the lowest price to sales ratios and highest asset turnover ratios in the space. MariMed is also one of the few MSOs that is profitable with positive net income and free cash flow. The company is still small with only 5 dispensaries; this gives it an even bigger growth profile than any of the larger MSOs like Trulieve (OTCQX:TCNNF) and Curaleaf (OTCPK:CURLF) which are currently growing at 100% YoY. Whether the company is acquired or continues to execute with great efficiency, I think MariMed is an attractive investment.

Sega’s video game business is being overshadowed by declining business segments, but underneath we have a growing profitable business. This overshadowment is creating one of the cheapest video game plays out there trading at an adjusted 8-12 PE ratio. Sega has a huge cash pile with great IP and good growth potential due to development of a new big game, acquisitions and utilization of existing IP. 

The Video game industry has been a booming industry for decades. The industry hit 168 billion dollars in 2020 which is a 14% CAGR growth from 2016 levels. The number of games on the Steam platform grew from 100 in 2006 to over 30000 in 2020. The growth train still has legs to run. Growth avenues such as female gamers, smartphone penetration, emerging market spend spread, esports and diminishing age related spend declines should help the industry maintain an 11% CAGR growth for the next 20 years. Thus, making stocks selection in this industry rather attractive especially as gaming stocks have been put in a bit of a downturn recently due to the reopening trade.

Emerging markets have yet to recover to pre-COVID levels and interest rates and spreads are at cycle lows. I believe emerging markets will recover and interest rates globally could climb higher. Financial Institutions in Latin America could be big beneficiaries if both come true. My top pick in Latin America is Bladex (NYSE:BLX). Bladex is the most diversified of the Latin America banks operating in almost every Latin American country. 75% of their loans are less than one year in duration with 48% being variable rate meaning they should benefit nicely if rates move higher. Almost all loans are made in US dollars effectively negating any currency risk at least for a US investor. They also have the safest loan book in Latin America evidenced by their low NPL ratio and in the most recent quarter management reported 0 NPLs. Currently, Bladex is paying a 6.5% dividend and management just recently announced a 60mm dollar buyback which puts the shareholder yield close to 11%. So even if interest rates don’t rise shareholders will get paid. First I’ll go into the Macro backdrop then compare Bladex to peers and go into Bladex’s valuation.

I see restaurants benefiting post Covid because lots of competition got eliminated during the shutdown. This should lead to an attractive competitive environment which should offset margin pressure from labor and food delivery. In this space GTIM sticks out as an enticing business with restaurant operating margins close to its peers, and has plenty of growth ahead of itself. However none of that is reflected in the stock price; trading at less than .5 times sales well below peers. I’ll go over trends in the restaurant industry then delve into why I like GTIM.