Evan Tindell, CIO of Bireme Capital, discusses the value he sees in Tencent Music (TME). Key topics include why he's not worried about TME's controlling shareholder or VIE structure, and why he thinks the stock is significantly undervalued.
My Twitter thread on TME: https://twitter.com/AndrewRangeley/status/1458813448217935874?s=20
Bireme Capital's website: https://www.biremecapital.com/disclaimer.html
Chapters
0:00 Intro
1:05 TME Overview
1:40 History of shorting Chinese reverse merger
4:30 More background on TME
7:55 How similar is TME to Spotify?
20:00 Why is TME the best way to play the current panic in China stocks?
24:30 Can we trust Tencent as TME's controlling shareholder?
28:15 The VIE structure risk
35:30 How did TME come to be so dominant in Chinese music streaming?
38:10 TME's cash rich balance sheet
43:00 TME's valuation
49:00 Discussing Spotify's valuation in relation to TME
55:50 What risk to TME worries Evan the most?
57:40 Is Evan attracted to messy ownership / control situations?
1:03:30 Brief discussion of Cogeco's current situation
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