AJ Secrist from Firstlight Management on Lamb Weston $LW

AJ Secrist from Firstlight Management discussed his thesis for Lamb Weston (LW). LW is a very strong business, and AJ thinks the market is missing just how much margin upside there is as COVID era deals with large customers reprice and the company laps 2021’s disastrous potato crop.

Chapters

• 0:00 Intro
• 2:25 LW Overview
• 9:35 LW Valuation
• 13:00 Isn't LW fully valued at these prices?
• 19:25 Discussing the current potato crop
• 26:55 Global margin upside
• 28:35 Why is scale an advantage for LW?
• 31:45 Why will LW's margins accelerate now?
• 34:30 Industry demand and supply dynamics
• 37:20 Capital allocation and share buybacks
• 41:30 Management incentives and share price targets
• 45:00 Potential private equity or BRK end games
• 48:10 A little more discussion on LW's potential P/E multiple
• 51:10 What happens if we have a low carb craze again?