Author Topic: TESB.BR - Tessenderlo Group  (Read 69453 times)

Christopher1

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skanjete

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Re: Tessenderlo Group
« Reply #21 on: June 18, 2014, 10:01:35 AM »
skanjete,
I wasn't able to find Mr. Tack's age anywhere... Do you happen to know it? ;)

Thank you,

Gio

Gio,

I believe he's about 52.
So hopefully, he has some years ahead of him.

skanjete

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Re: TEZ.F - Tessenderlo Group
« Reply #22 on: June 18, 2014, 11:15:51 AM »
Ciao Gio,
if my translation is correct Tack is 52 years old.

http://trends.knack.be/economie/nieuws/dossiers/manager-van-het-jaar-2013/luc-tack-ceo-picanol-er-zijn-hier-betere-managers-dan-ik/article-4000455327744.htm

I'm sorry Christopher.
I hadn't seen your post and answer.

The interview that you posted is quite telling.

It's an interview because Tack was nominated for manager of the year.

The first paragraph states :
"Saying that Luc Tack received us with enthousiasm is quite an overstatement. Tack : "I would have preferred not to receive the nomination as manager of the year. I would much prefer to be able to continue working without being bothered. Anyways, I'll help you."

writser

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Re: TEZ.F - Tessenderlo Group
« Reply #23 on: June 18, 2014, 02:48:30 PM »
Please forgive me for asking a question while barely having looked at both companies in depth. But if you like the manager, why not invest in Picanol instead? You still have the Tessenderlo upside as well as the chance of buying the future Belgshire.
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.

giofranchi

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Re: TEZ.F - Tessenderlo Group
« Reply #24 on: June 18, 2014, 10:57:19 PM »
Please forgive me for asking a question while barely having looked at both companies in depth. But if you like the manager, why not invest in Picanol instead? You still have the Tessenderlo upside as well as the chance of buying the future Belgshire.

I guess it is something like this: do you prefer to invest in BH, or in CBRL, or whatever company Mr. Biglari is targeting?
Some prefer the latter, because the effect of thoughtful restructuring doesn’t get diluted inside a company with many other assets.

Gio
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giofranchi

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Re: TEZ.F - Tessenderlo Group
« Reply #25 on: June 18, 2014, 11:01:04 PM »
The interview that you posted is quite telling.

Yeah! If you can understand it…!! I had found that interview… but couldn’t understand a single sentence!! :(

Gio
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skanjete

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Re: TEZ.F - Tessenderlo Group
« Reply #26 on: June 18, 2014, 11:19:54 PM »
Please forgive me for asking a question while barely having looked at both companies in depth. But if you like the manager, why not invest in Picanol instead? You still have the Tessenderlo upside as well as the chance of buying the future Belgshire.

You're right.
Theoretically Picanol could even be better. I actually bought some at lower prices, because one at that moment was only paying for the Picanol business and got the Tessenderlo investment plus cash for free. So the downside at Picanol was minimal, with a nice potential.

But there were 2 things :
- the weaving machine business is poised to experience a cyclical dip over the next few years. Of course the company won't get into trouble this time and will remain steadily cash generative. So this was actually no problem, but the potential of Picanol over the next few year will have to come from their Tessenderlo investment, which has a value of about a third of the stock price I think.
- the main thing however was the very small free float and absolute power of Tack (90%). It's not only difficult to get shares in quantity, but when you have them, you're surrendered to the benevolence of Tack. They say they will remain listed. But apart of that commercial reason I mentioned, there is no reason whatsoever to remain listed. The attitude of the company is also more as from a private company and not like a public company. So although they say they'll remain listed and I tend to believe them, there's always a risk of a take-under by the controlling shareholder.

In view of the above concerns and my confidence in the Tessenderlo story, I opted for a somewhat higher risk in Tessenderlo and higher potential.
 
PS. I actually suggested to Haspeslagh if there was no possibility to merge the 2 companies. Picanol could f.e. take over Tessenderlo for cash or a share swap. I thought maybe they could use the tax loss carried forwards from Tessenderlo to offset some profits at Picanol. But they didn't seem to consider this possibility. The first priority is fixing Tessenderlo they said.

giofranchi

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Re: TEZ.F - Tessenderlo Group
« Reply #27 on: June 18, 2014, 11:49:44 PM »
Ok, so now let me see… what I am looking for:

1) A manager young enough – TEZ.F: check!

2) A manager with a good and already long enough track record; I want to know what that manager has accomplished in the past, and for how long he has sustained good performance – TEZ.F: check! Though I must admit it is only on the basis of what skanjete told us… I wasn’t able to find practically anything else about Mr. Tack’s business accomplishments.

3) A manager with a lot of skin in the game – TEZ.F: check!

4) A manager who explains extensively and clearly enough how he/she is going to create value in the future – TEZ.F: unfortunately, it is very difficult to find Mr. Tack writing and reasoning about his businesses and strategies… In the last 24 hours I have found practically nothing… Also the Picanol Letters to the Shareholders read like an account of what has happened… but the why and the how are almost never touched!

5) I should understand easily enough what the manager has explained, and agree with his/her views about the business – TEZ.F: without 4) requisite 5) of course cannot be fulfilled.

6) A business that is predictable enough – TEZ.F: check! Though clearly not high margins, chemical products will be needed for the foreseeable future.

So, where does all this leave me? Points 4) and 5) are clearly a problem for me, in part also point 2)… Is it too much to ask of Mr. Tack that he explains what he is about to do, and how he intends to achieve his business goals? skanjete, do you understand if I say I trust you and thank you very much for the work you have shared with us, but that I also need Mr. Tack himself to confirm what you have said?
…But I guess this is exactly why in general I find it so much difficult to invest in public companies outside North America: because elsewhere I find so little information and transparency!

I don’t know… I admit I am torn: on one hand I like very much what’s going on here, on the other hand my investment process isn’t complete…

Gio
« Last Edit: June 19, 2014, 12:27:03 AM by giofranchi »
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skanjete

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Re: TEZ.F - Tessenderlo Group
« Reply #28 on: June 19, 2014, 12:21:07 AM »

4) A manager who explains extensively and clearly enough how he/she is going to create value in the future – TEZ.F: unfortunately, it is very difficult to find Mr. Tack writing and reasoning about his businesses and strategies… In the last 24 hours I have found practically nothing… Also the Picanol Letters to the Shareholders read like an account of what has happened… but the why and the how are almost never touched!

5) I should understand easily enough what the manager has explained, and agree with his/her views about the business – TEZ.F: without 4) requisite 5) of course cannot be fulfilled.

So, where does all this leave me? Points 4) and 5) are clearly a problem for me, in part also point 2)… Is it too much to ask of Mr. Tack that he explains what he is about to do, and how he intends to achieve his business goals? skanjete, do you understand if I say I trust you and thank you very much for the work you have shared with us, but that I also need Mr. Tack himself to confirm what you have said?
…But I guess this is exactly why in general I find so much difficult to invest in public companies outside North America: because elsewhere I find so little information and transparency!

I don’t know… I admit I am torn: on one hand I like very much what’s going on here, on the other hand my investment process isn’t complete…

Gio

Gio,

I admire your consistency and your investment process.

You're right. Tack won't tell it himself. He likes too much his low profile. It's also part of the culture of course. In the US, a succesfull businessman is considered an example, a star, so he has an incentive to come out with his accomplishments. In socialist countries, a succesfull businessman is considered a shady figure by many people/politicians. So in this case it makes perfect sense to keep a low profile.

It's true we have no idea of the strategy of Tack and he doesn't explain his views on how to create a platform for future value creation. But I let the trail and figures he left in the past tell the story.
Based on what he has done in the past, one can figure out what kind of businessman he is, and what he will do in the future, given a certain set of circumstances.

It's like evaluating an investor. Sometimes his words or even his investment record doesn't tell the story because stellar results can be the consequence of favorable circumstances or simple luck. To evaluate an investment manager, I consider his thought process. If that process goes along the lines of value investing, it tells a lot more of future results than his track record.

I think that I have an idea of the work and thought process of Tack and Haspeslagh, based on their comments and actions in the past and the subsequent events. For me that's enough. I can image that this is not evident for someone else. Of course, if one lacks the conviction, it's better not to invest, because the necessary staying power will lack if the investment hits a tough patch.

skanjete

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TESB.BR - Tessenderlo Group
« Reply #29 on: June 19, 2014, 12:28:59 AM »
I see that the subject title mentioned TEZ.F as ticker.
I changed it to TESB.BR because the main and most liquid market is in Brussels.