market folly

We're posting notes from the Sohn London investment conference 2016.  Next up is Michel Massoud of Melquart who pitched a long of Opera Software (STO:OPERAO).


Michel Massoud's Sohn London Conference Presentation

Long Opera Software (STO: OPERAO) 

Opera is a mobile advertising focused tech company listed in Oslo. Market cap $1 billion. It has divested its consumer business – mobile desktop browser for $575 million. The remaining businesses are: 

- Opera Media Works – an advertising agency. 

- Bemodi – the most exciting part. The Netflix of mobile apps. It is run on a subscription basis and has thousands of apps. It has become popular in some emerging market countries, particularly in Brazil. It is growing fast and rolling out into 20 markets.

- Opera TV, based in Poland. A tech business with stable revenues.


The catalysts ahead: Opera has lots of cash from the sale of the of the browser business. They can pay down debt, return a third to shareholders via dividends and buybacks. There is 30% upside if Opera re-rates.

There could be further disposals: Opera TV and the Skyfire business. Sum of the parts valuation suggests upside of 60-84%

Risks: cyclicality, seasonality; Bemodi has not been tested outside of Brazil; the difficulties involved in realising value via disposals.

Be sure to check out the rest of the Sohn London conference presentations here.