I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on Mexican hard discount retailer, BBB Foods Inc. (TBBB). From the executive summary of the article is the following:

• BBB Foods shows exceptional revenue and NOPAT growth, driven by scale economies and a disciplined cost structure.
• Despite growth, the firm’s ROIC remains below WACC, leading to sustained economic losses.
• Persistent negative free cash flow and heavy reinvestment raise concerns about long-term capital efficiency.
• Euphoric pricing implies unrealistic growth expectations, making downside risk greater than potential upside, earning the company a Sell rating.

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I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on global IT distributor, Ingram Micro Holding Corporation (INGM). From the executive summary of the article is the following:

• Ingram Micro operates in a massive, growing IT market but has failed to translate this into revenue or margin growth, despite strategic investments.
• The company’s transition to a platform model is hampered by its capital-intensive physical logistics, limiting profitability and scale economies.
• Current valuation assumes optimistic growth, but reverse DCF analysis shows significant downside risk if recent trends persist.
• Given persistent thin margins, lack of differentiation, and unattractive returns, I recommend a ‘Sell’ rating on INGM stock.

The rest of the article is available here.

I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on the Commercial Metals Company, whom I have previously covered. From the executive summary of the article is the following:

• I rate Commercial Metals Company as a Hold, given a balanced risk/reward profile and current valuation reflecting only modest growth expectations.
• Strong industry tailwinds exist from infrastructure spending, reshoring, and green construction, but regime uncertainty and tariff risks temper demand visibility.
• CMC’s 100% EAF production, vertical integration, and management alignment support long-term value, yet recent financial performance has deteriorated since 2022.
• With ROIC and NOPAT declining, I recommend current shareholders hold, while prospective investors should await clearer signs of a capital cycle bottom.

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I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on the steel company, Steel Dynamics, Inc. (STLD), whom I have previously covered. From the executive summary of the article is the following:

• I assign Steel Dynamics a Strong Sell rating due to deteriorating economic fundamentals and an unfavorable risk/reward profile.
• ROIC and free cash flow have declined sharply since 2022, signaling worsening profitability and a poor entry point in the capital cycle.
• Tariffs may provide short-term margin expansion, but long-term effects are likely to constrain growth and competitiveness for Steel Dynamics.
• The valuation is unattractive, with downside risk far outweighing upside potential based on realistic cash flow and margin scenarios.

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I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on the American investment advisor, Diamond Hill Investment Group, Inc. (DHIL), whom I have previously covered. From the executive summary of the article is the following:

• Diamond Hill faces secular headwinds from passive investing, fee compression, and industry competition, leading to declining profits and revenue over the past five years.
• Despite these challenges, Diamond Hill’s disciplined, value-oriented approach and strong alignment between management and shareholders offer some resilience and capacity discipline.
• The market appears overly pessimistic, pricing in a 14% NOPAT decline; modest upside exists if declines are less severe, with potential 7-20% returns.
• I rate Diamond Hill a Buy for short-term benchmark-beating potential, but caution that long-term prospects remain challenged by structural industry shifts.

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I recently published an investment thesis exclusive to the investment platform, Seeking Alpha, where I will be covering recent and forthcoming initial public offerings (IPOs). The article is on the American security products company, CompX International Inc. (CIX). From the executive summary of the article is the following:

• CompX International is rated a sell due to declining financial performance since 2022, despite a seemingly reasonable valuation and alignment of shareholder-management interests.
• The business is simple and resilient to tariffs, with a significant portion of its revenue from U.S.-manufactured security products and marine components.
• Despite tariff resilience, CompX’s financials show a concerning decline in revenue and NOPAT, suggesting it may not meet market expectations.
• Valuation analysis indicates significant downside risk if revenue and NOPAT margins do not improve, making CompX a potential value trap.

The rest of the article is available here.