market folly

We're posting up notes from the Sohn Canada Investment Conference 2015 (Capitalize For Kids.)  Next up is Jody LaNasa from  Serengeti Asset Management.  LaNasa pitched long IRSA.

Jody LaNasa's Capitalize For Kids Presentation

-    Argentina credit re-rating after politician change in coming months
-    Highly educated and young people
-    Underlevered due to limits of leverage after past bankruptcies which has slowed growth
-    Have been subsidizing power and limited cattle exports which has led to 25% inflation since 2007
-    Long IRSA 
-    One of the largest mall operators in Argentina, they are packed, 98.4% occupancy
-    Highest rent and sales psf in North and South America
-    Rent adjusted for inflation as rent is calculated based on sales of stores
-    20% implied cap rate
-    5-7% average market cap rates
-    60% upside or 2.5x MOIC
-    Hidden value in IDB, sum of parts worth >2x book value
-    Land Bank – properties bought in early 90’s
-    Including these assets: 4.0x MOIC potential

Be sure to check out the rest of the presentations from the Capitalize For Kids Conference.