Going back to our scheduled theme, we found a great company fits exactly the stuff that we look for. In this case, the value of the real estate plus the net cash are essentially equal to the market cap. So… you’re getting operations and brand value for free
Let’s dive into the details.
Pick of the Week. A curated series of high-conviction research on companies currently under our microscope. We screen for specific dislocations where the market has mispriced the balance sheet or earnings power.
The Selection Criteria:
Asset Arbitrage: Trading at a discount to tangible liquidation value.
Backlog Disconnect: Future contracted revenue ignored by the market.
Hidden Margins: Structural profitability masked by temporary noise or CAPEX cycles.
The Structure:
The Business: A concise operational overview.
The Dislocation: The specific structural reason the opportunity exists.
The Valuation: A stress-tested snapshot including downside risks (”Red Flags”) and our proprietary score.
None of the following should be construed as investment advice. Please consult a financial advisor before making any investment decision. You will find a full disclaimer at the end of this post.
Note that we’re no strangers to the toy sector. Our most recent success in the space is Dream International, a conviction play we’ve been advocating for since 2020. To ensure the thesis was tracking, we even flew out to visit their operations firsthand during our Hong Kong tour last summer.
🧸 Character Group plc ($CCT)
Headquartered in Surrey, Character Group is the UK’s largest independent toy developer and distributor.