Yahoo Finance recently hosted a discussion featuring three experienced investors—Marques Blank (Blank Capital), Shailesh Kumar (Astute Investors Calculus), and Sowmy VJ (Managing Partner, Helix research)—sharing high-conviction investment ideas, ranging from micro-cap defense contractors to well-known value conglomerates and short-sale targets in discount retail.
Featured Investment Ideas
Here is a quick summary of the ideas presented:
Graham Holdings Company (GHC) (Presented by Shailesh Kumar)
Thesis: Shailesh sees GHC, the former Washington Post Company, as an undervalued holding company and “small conglomerate, much like Berkshire Hathaway”. It’s managed by the Graham family’s son-in-law, Tim O’Shaughnessy.
Valuation: Shailesh used a sum-of-the-parts analysis, breaking the company into four major segments (education, auto, broadcasting, healthcare), and applying a free cash flow multiple valuation against peer groups.
Conclusion: He found an intrinsic value of about $6.8 billion, representing a significant discount to the current stock price, offering a “big margin of safety” for a long-term hold. He has been holding the stock for about six months.
Optex Systems (OPXS) (Presented by Marquis Blank)
Thesis: Optex is pitched as a “sole source monopoly hidden in plain sight”. It manufactures critical periscopes and sighting systems for US Army vehicles like the Abrams tank and Bradley fighting vehicle.
Catalysts: The company benefits from a regulatory and technical “sole source moat” , a “geopolitical super cycle” leading to a “renaissance of armor” , and potential margin expansion as revenue scales past $30 million. Their backlog recently expanded to a record high of $45 million.
Key Risk: The biggest risk is customer concentration, with about 90% of revenue tied to US defense prime contractors and the government. Marquis entered the stock earlier this year when it was around $5 to $6 a share.
Dollar General (DG) (Presented by Sowmy VJ)
Thesis: Helix is shorting Dollar General, taking a “feeding the rally” stance. The trade fits into the “necessity trade” as consumers turn to discount retailers in a slowing economy.
Concerns: While analysts praise growing free cash flow (FCF), Sowmy argues FCF alone can be easily spent. The key concern is a “drag on the return on invested capital (ROIC),” suggesting a lack of a wide moat.
Management & Ethics: Additional factors include numerous OSHA violations (like blocked fire exits), questioning management efficiency and effectiveness , and the company’s role in “food deserts” by selling “highly processed junk,” which Sami believes is “convenience at the expense of public health”.
We have a few more discussions lined up, with experts on the Yahoo Finance platform. Please share your views and let us know what you are investing in.
