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Since my last article on Village Super Market (NASDAQ:VLGEA) the company has performed quite well. The company’s profitability has significantly improved and same-store sales has been positive. However, its valuation is still depressed at .17 times sales which is one of the lowest in the sector and about the same as of my last article. Net income margin has increased since 2021 from .98% to 1.7% in 2022 and in the most recent quarter, it hit 2.2%. If the current profitability can continue the company would be trading at 8 times earnings. Given a pending recession, Village wouldn’t be a bad place to continue to park money in my view.

I have become very confused about the future of Marijuana as of late. 

Aeroporto Guglielmo Marconi di Bologna SpA(Ticker:ADB) operates an airport in Bologna, Italy. I’ll refer to Aeroporto Guglielmo Marconi di Bologna SpA as its ticker for the remainder of the article. ADB pre-covid was executing beautifully growing passenger volumes or PAX at a 7% CAGR vs 4% growth for Italian peers. Margins expanded from 9% in 2014 to close to 17% in 2019 due to increasing non-aero revenue which has much higher margins than aero revenue. Then covid came and destroyed air traffic for two years. As of October 2022, PAX has finally eclipsed 2019 numbers by over 4%. ADB has now finally recovered from covid but the stock price is below march 2020 levels. This is where the opportunity arises. 

Founded in 1909, ACEA is a multi-utility operator. ACEA is the largest water utility in Italy also operating in Latin America. ACEA’s other segments include energy, engineering, gas, and waste management. ACEA is trading at a 6% dividend yield and a 9 PE Ratio. This is a massive undervaluation compared to peers in the US and UK.

Nihon Falcom was founded in 1981 and is a small video game developer in Japan. Nihon has been growing its highly lucrative license revenue since 2011 at a 25% CAGR. Nihon’s business strategy is to develop video games creating memorable characters, music, and stories. They then license this created IP from the video games to various platforms, media, goods, services, etc. The licensing revenue is extremely profitable too. The company is trading close to cash or 5 times normalized earnings ex-cash most likely due to seemingly flat revenue and historical conservative management. I think the company is poised for significant upside with very little downside.