Nitin Sacheti. CIO of Papyrus Capital and PM at ARS Investment Partners, breaks down his thesis for Innovate (VATE). VATE used to be known as HCHC. HCHC was a mishmash of interesting but disparate assets with a huge cost base. Following an activist battle in late 2019 / early 2020, a new management team was brought in and they have sold off noncore assets while dramatically reduing corporate overhead. Nitin believes the remaining assets are all uniquely valuable, and each could be worth more than VATE's current market cap on their own. With several looming catalysts and inflection points, Nitin thinks the next year or two could cause the market to rerate VATE closer to its intrinsic value.
My thread on $VATE: https://twitter.com/AndrewRangeley/status/1452377035897200653?s=20
Chapters
0:00 Intro
2:15 VATE Overview
3:05 Segment #1: DBM Overview
5:15 Segment #2: Life Sciences Overview
7:15 Segment #3: Broadcasting Overview
12:10 Discussing VATE's new management team
21:45 Breaking down the Broadcast business
30:00 Pushing back on the broadcast business plan
35:50 How to value broadcast's spectrum
37:55 Is broadcast spectrum still valuable in a 5G world?
42:20 Discussing DBM's moat and value
47:40 What does R2 (life science's main asset) do?
53:20 Walking through VATE's SOTP value
1:00:50 How to look at VATE's recent related party deals
1:05:25 Discussing VATE's chairman and largest shareholder
1:08:15 What's the endgame for VATE?
Additional disclaimer: Today’s discussion may contain forward looking statements all statements made that are not historical facts are subject to a number of risks and uncertainty; actual results may differ materially. Please refer to ARS's website for important legal and disclosure information: www.arsinvestmentpartners.com