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Sendas Distribuidora (NYSE:ASAI) or Assai is the second-largest grocery player in Brazil focused on the cash and carry segment of groceries. Assai executed a transaction with its former parent company GPA in 2021 to acquire 70 hypermarkets to convert into Assai stores. This transaction promised growth, which has materialized as of 2024. Profitability suffered as the company digested the large amount of new stores but this year’s SG&A to revenue is finally starting to come down, and the company is set to get back to 5% EBIT Margins. The stores are still relatively young, which should mean continued high growth coupled with a return to higher profitability means ASSAI could be a strong performer.

Summary of my Portfolio as of Q1 2024.

Newspapers globally are gradually shifting towards digital content amidst the waning print business. Over the past two decades, newspaper companies have faced significant challenges, with many experiencing their stock prices reaching their zenith in the late 90s and early 2000s, coinciding with the decline of print media. However, digitalization presents a promising avenue for newspapers to escape this decline. It holds the potential to not only reverse the downward trajectory but also trigger a reevaluation of stock prices, driven by anticipated growth and enhanced profitability in the market’s eyes.

Science Group(LON:SAG) is a UK listed company involved in R&D, regulatory, compliance and defense consulting while also involved in DAB radio chips and atmosphere management systems on submarines. The variety of businesses were brought to the company through acquisitions beginning in 2013. The business seemed to change significantly in 2010 when the current chairman bought a significant stake in the company and shortly after made the companies first acquisition. The company is sitting on an excellent balance sheet with high returns on capital and only a 12 times EV/EBIT.

Summary of my Portfolio as of Q4 2023.