Business:Investing
A $GOED investment thesis that WARRANTs a look with Thomas Braziel
2021-08-26
Thomas Braziel, President of 507 Capital, discusses his investment in $GOED. Key topics include addressing the (many) red flags around the investment, how Thomas found the company and why he likes the set up so much, and why investing in stocks with some hair on them can deliver serious alpha.
Thomas's twitter: https://twitter.com/ThomasBrazielÂ
My notes on GOED: https://twitter.com/AndrewRangeley/status/1430382893692506112?s=20
Chapters
0:00 Intro
1:20 Thomas's legendary Ethenex trade
3:10 $GOED overview
8:00 Background to the set up / how the warrants came publicly traded
11:00 $GOED merger / financing background
14:00 The massive stock offering discussion
17:00 Do you believe $GOED's claims that they have sourcing and distribution advantages?
20:25 Why was AC the seller instead of the buyer?
24:30 Do you worry about $GOED auditor switch / financial statements?
27:30 Why did GOED keep recutting the deal to give AC more cash?
31:20 GOED's rebate accounting
34:20 Capital allocation going forward
37:25 General discussion of why buying stocks with hair is riskier but carries huge potential rewards
38:30 GOED management's alignment
40:05 GOED's activist potential
43:10 Quickly painting a reasonable bull / valuation case
48:05 General discussion of swinging hard when you find a good pitch
49:30 How capital light will GOED be?
52:10 Quick Tesla discussion
53:25 Thomas's closing thoughts (and a quick ICLTF mention!)
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