Author Topic: BOL.PA - Bollore  (Read 38622 times)

LowIQinvestor

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BOL.PA - Bollore
« on: February 25, 2015, 10:40:17 AM »
(See Carson Block's recent long thesis)

Founded in 1822, the Bolloré Group is one of the 500 largest companies in the world. Listed on the Paris Stock Exchange, the majority interest of the Group's stock is always controlled by the Bolloré family. This stable majority control of its capital allows the Group to develop a long-term investment policy.
Thanks to a diversification strategy based on innovation and on international development, it now holds strong positions in all its activities around three business lines, Transportation and Logistics, Communication and Media, Electricity Storage and solutions.

In addition its activities, the Group manages a number of financial assets including plantations and financial investments.

In 2013:
53,608 employees world-wide
Turnover: 10,848 million euros
Net income: 450 million euros
Shareholders' equity: 9,316 million euros

http://www.bollore.com/en-us/investors/key-figures

http://www.bloomberg.com/news/articles/2015-02-17/block-s-muddy-waters-takes-first-bullish-bet-on-france-s-bollore
« Last Edit: February 25, 2015, 12:21:31 PM by Parsad »


Phaceliacapital

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Re: BOL.PA - Bollore
« Reply #1 on: February 26, 2015, 01:41:16 AM »
Yeah, so the case basically boils down to believing in the circular calculations the external consultant performed for MW. They don't really claim assets are undervalued, just that your share is actually worth more than you think, difficult to confirm this yourself, no?

That being said, it's a nice owner operator, and MW paper gives good background info. In addition, the circular ownership setup is very interesting for the entrepeneurs amongst us.
The harder you work, the luckier you get.

accutronman

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Re: BOL.PA - Bollore
« Reply #2 on: February 26, 2015, 06:16:42 AM »
Bollore is a superb stock and Vincent Bollore is a consummate deal maker. Additionally, a great play on Africa with the holdings in ports and plantations. I bought back in 2012 and have tripled my money since then. Link to MW report: http://www.muddywatersresearch.com/wp-content/uploads/2015/02/MW_Bollore_02172015.pdf

accutronman

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Re: BOL.PA - Bollore
« Reply #3 on: February 26, 2015, 06:19:28 AM »
Additionally, if you want to play price to book value and the interlocking ownership of Bollore, take a look at the upstream entity Financiere de l'Odet (ODET.PA). More thinly traded but performance at times outstrips Bollore.

writser

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Re: BOL.PA - Bollore
« Reply #4 on: February 26, 2015, 06:56:48 AM »
This idea looks interesting but it's too complicated for me to understand. As Phaceliacapital said you just have to believe the Muddy Waters research. Makes it a pass for me.
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

LowIQinvestor

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Re: BOL.PA - Bollore
« Reply #5 on: February 26, 2015, 06:57:26 AM »
Quote
Bollore is a superb stock and Vincent Bollore is a consummate deal maker. Additionally, a great play on Africa with the holdings in ports and plantations. I bought back in 2012 and have tripled my money since then. Link to MW report: http://www.muddywatersresearch.com/wp-content/uploads/2015/02/MW_Bollore_02172015.pdf

Thanks for providing the MW report. I hadn't seen it.

I followed Bollore into Vivendi in mid 2012 (VIVHY)- It still looks attractive despite being up around 40% from my cost basis.

Hielko

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Re: BOL.PA - Bollore
« Reply #6 on: February 26, 2015, 07:23:38 AM »
This idea looks interesting but it's too complicated for me to understand. As Phaceliacapital said you just have to believe the Muddy Waters research. Makes it a pass for me.
It's not rocket science what MW did. Should be able to replicate their work with a bit of effort.

constructive

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Re: BOL.PA - Bollore
« Reply #7 on: February 26, 2015, 09:15:10 AM »
So it's what, 20 or 25x earnings? Definitely cheap on NAV but not particularly cheap on earnings/cash flow.

writser

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Re: BOL.PA - Bollore
« Reply #8 on: February 26, 2015, 09:39:17 AM »
This idea looks interesting but it's too complicated for me to understand. As Phaceliacapital said you just have to believe the Muddy Waters research. Makes it a pass for me.
It's not rocket science what MW did. Should be able to replicate their work with a bit of effort.

But it's work ...
When you are dead, you do not know you are dead. It's only painful and difficult for others. The same applies when you are stupid.

namo

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Re: BOL.PA - Bollore
« Reply #9 on: February 26, 2015, 10:34:40 AM »
Additionally, if you want to play price to book value and the interlocking ownership of Bollore, take a look at the upstream entity Financiere de l'Odet (ODET.PA). More thinly traded but performance at times outstrips Bollore.
Also, Bolloré is where the stock is emitted (as acquisition currency), whereas Odet stockholders never got diluted.

Disclosure: I own Odet stock.