Argonautica

Professional investors can review published thought leadership and market updates from the Argonaut Investment Team.

4 posts found by Oisin O'Leary

‘Inmarsat: Another No-Growth Quarter’

Last Thursday Inmarsat announced results for Q3. Whilst the share price reaction on the day suggested a positive reading of the results by the market, we believe a large part of this was relief that the company did not issue a profit warning. In fact, when looking at the results in more detail, Q3 proved to be yet another quarter of zero growth for the company. In our previous blog ‘Inmarsat: Rough Seas and Cloudy Skies’1 we highlighted our concerns around Inmarsat’s guidance for 2018 – an increase…

‘Inmarsat: Rough Seas and Cloudy Skies’

The satellite industry is one which is rather complex and opaque at first glance, and the time needed to develop a meaningful understanding of its dynamics relative to the small number of investable opportunities often leads investors to look elsewhere. Having carried out a review of the industry, including interviews with the main satellite operators, resellers and customers, we believe the satellite industry currently bears a striking similarity to the telecommunications sector in the 1990’s –…

‘Casino: Heads They Lose, Tails They Lose’

Casino is anything but a boring supermarket story. Faced with increasing price competition in its native France a number of years ago, Casino decided to lever its balance sheet to acquire assets in emerging market countries, namely Brazil, Thailand, Columbia and Vietnam. Whilst this initially bought the company top-line growth, the combination of Euro denominated debt with emerging market earnings has now become problematic given the deterioration in emerging market macro conditions, currency headwinds,…

‘Trash Can Rally’

Following a very difficult August and September for markets, the start of October has seen a market rally, but has proven to be a much more challenging period for alpha generation. Previously successful short positions have squeezed higher, as hedge funds attempt to close winning positions at the same time. Similarly long positions, while faring slightly better in comparison, have also come under selling pressure and underperformed as a result. By analysing the broader market, the key factor to…