Note to readers: #WeeklyInvestorReader contains a few of the articles I read during the week. Visit my Twitter @HurriCap for any other articles that may not have been included.
Omnicom Group Inc. (NYSE:OMC) $OMC – Singular Diligence, 2016| Omnicom Group Inc. (NYSE:OMC) is one of the world’s largest “marketing services” companies. It is a publicly traded holding company that owns many different agencies. Omnicom breaks its revenue down into four categories: advertising (50% of revenue), customer relationship management (34%), public relations (9%), and specialty communications (7%).
The Local News Business Model – Stratechery, May 9, 2017| It’s hardly controversial to note that the traditional business model for most publishers, particularly newspapers, is obsolete. Absent the geographic monopolies formerly imposed by owning distribution, newspapers have nothing to offer advertisers: the sort of advertising that was formerly done in newspapers, both classified and display, is better done online. And, contra this rather fanciful suggestion by New York Times media columnist Jim Rutenberg that advertisers prop up newspapers for the good of democracy, nothing is going to change that.
Investment Insights from Jim Chanos of Kynikos Associates – C4K Investor Series, March 1, 2017| We had the rare opportunity to sit down with the world-renowned, President and Founder of Kynikos Associates, Jim Chanos. Read our full interview with him in the latest edition of the Capitalize for Kids Investor Series.
The Michael Milken Project – Institutional Investor, May 1, 2017| How did a 70-year-old ex-con barred for life from Wall Street become one of its most respected men?
How to Judge a Business’s Durability – Geoff Gannon, June 13, 2015| Of course, for millions of years, people couldn’t look it up. They couldn’t read and they hadn’t invented writing yet, so there was nothing to look up.
The Big Difference Between “Moat” and “Durability” – Geoff Gannon, March 2, 2017| Durability is about the product and the product economics of the industry. Moat is the ability of the specific company to sell more of the product and have better product economics than competitors.
What in the World Is Causing the Retail Meltdown of 2017? – The Atlantic, April 10, 2017| The number of malls in the U.S. grew more than twice as fast as the population between 1970 and 2015, according to Cowen and Company’s research analysts. By one measure of consumerist plentitude—shopping center “gross leasable area”—the U.S. has 40 percent more shopping space per capita than Canada, five times more the the U.K., and 10 times more than Germany. So it’s no surprise that the Great Recession provided such a devastating blow: Mall visits declined 50 percent between 2010 and 2013, according to the real-estate research firm Cushman and Wakefield, and they’ve kept falling every year since.
H&M måste möta marknadens krav – Di, 9 maj 2017| Det faktum att H&M:s aktie har tappat 40 procent av sitt värde de senaste två åren är ett ofantligt misstroendevotum från investerarna. Samtidigt köper storägaren Stefan Persson aktier. Det innebär rimligtvis att det finns ett informationsglapp mellan storägaren och resten av marknaden, som inte förstår hur värderingen ska kunna försvaras.
H&M:s tystnad upprör ägarna – Di, 9 maj 2017| Klädjätten H&M är sämst bland börsens storbolag på investerarrelationer, tycker många stora fonder och institutioner. ”Vi tror att en ökad informationsgivning gagnar både bolaget och dess aktieägare”, säger Ramsay Brufer, ägaransvarig på Alecta.