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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.

Pacific Smiles Group(PSQ.ASX) is an Australian based dental practice operating 127 centers and employing 850 dentists as of August 2022. Pacific Smiles is consolidating the Australian dental market as the market is quite fragmented. The growth runway for the company is large as the company only has a 3% market share. Pacific Smiles had a bad fiscal year 2022 due to covid shutdowns in Australia and the stock price reflects that. The Group was run really well in the past and I expect a recovery and continued growth going forward.

Summary of my positions as of 09/01/22. Also with additions and subtractions since the last update in July.