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BOL.PA - Bollore


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(See Carson Block's recent long thesis)

 

Founded in 1822, the Bolloré Group is one of the 500 largest companies in the world. Listed on the Paris Stock Exchange, the majority interest of the Group's stock is always controlled by the Bolloré family. This stable majority control of its capital allows the Group to develop a long-term investment policy.

Thanks to a diversification strategy based on innovation and on international development, it now holds strong positions in all its activities around three business lines, Transportation and Logistics, Communication and Media, Electricity Storage and solutions.

 

In addition its activities, the Group manages a number of financial assets including plantations and financial investments.

 

In 2013:

53,608 employees world-wide

Turnover: 10,848 million euros

Net income: 450 million euros

Shareholders' equity: 9,316 million euros

 

http://www.bollore.com/en-us/investors/key-figures

 

http://www.bloomberg.com/news/articles/2015-02-17/block-s-muddy-waters-takes-first-bullish-bet-on-france-s-bollore

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Yeah, so the case basically boils down to believing in the circular calculations the external consultant performed for MW. They don't really claim assets are undervalued, just that your share is actually worth more than you think, difficult to confirm this yourself, no?

 

That being said, it's a nice owner operator, and MW paper gives good background info. In addition, the circular ownership setup is very interesting for the entrepeneurs amongst us.

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Bollore is a superb stock and Vincent Bollore is a consummate deal maker. Additionally, a great play on Africa with the holdings in ports and plantations. I bought back in 2012 and have tripled my money since then. Link to MW report: http://www.muddywatersresearch.com/wp-content/uploads/2015/02/MW_Bollore_02172015.pdf

 

Thanks for providing the MW report. I hadn't seen it.

 

I followed Bollore into Vivendi in mid 2012 (VIVHY)- It still looks attractive despite being up around 40% from my cost basis.

 

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This idea looks interesting but it's too complicated for me to understand. As Phaceliacapital said you just have to believe the Muddy Waters research. Makes it a pass for me.

It's not rocket science what MW did. Should be able to replicate their work with a bit of effort.

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This idea looks interesting but it's too complicated for me to understand. As Phaceliacapital said you just have to believe the Muddy Waters research. Makes it a pass for me.

It's not rocket science what MW did. Should be able to replicate their work with a bit of effort.

 

But it's work ...

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Additionally, if you want to play price to book value and the interlocking ownership of Bollore, take a look at the upstream entity Financiere de l'Odet (ODET.PA). More thinly traded but performance at times outstrips Bollore.

Also, Bolloré is where the stock is emitted (as acquisition currency), whereas Odet stockholders never got diluted.

 

Disclosure: I own Odet stock.

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  • 4 months later...

Hi,

Bolloré issued a 6 year 450 MEUR bond with a 2,875% interest rate. We will see what he will do with the additional cash.

His stake in Vivendi is now at 14,5%.

Nice stake in Telecom Italia also.

Cheers!

Jeremy

Long Bolloré galaxy.

 

 

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Hi,

Vivendi (of which 14,5% is owned by Bolloré) now also has 0,95% of Telefonica. They got this share by swapping 3,5% of Telefonica Brasil. It seems that they wish to focus their attention on Europe.

A long time before the Muddy Waters report, a french investment firm had investigated thoroughly this complex galaxy and understands it's complexity: Moneta Asset Management (I do not work for them).

Cheers!

Jeremy

Long Bolloré galaxy.

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Hi,

I double checked: I confirm that Vivendi has 14,9% of Telecom Italia, 0,95% of Telefonica.

They got their 14,9M of Telecom Italia through the sale of GVT to Telefonica. Telfonica being an indirect shareholder of Telecom Italia.

Today Vivendi announced that they sold on the market the balance of their holdings in Telefonica Bresil. They got 877 MUSD through this transaction.

Cheers!

Jeremy

Long Bolloré Galaxy.

No holdings in Vivendi.

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  • 4 weeks later...

Hi,

first half results are published for Bolloré.

The numbers seem good to me:

-Sales: up 5% (flat on on constant exchange rate).

- EBITDA is ate 536 MEUR up 17%. Transport and logistics (thanks to Africa) and communications (thanks to Havas) did well.

- EBIT: up 11% at 338 MEUR.

- Net profit: 552 MEUR and took advantage of the dividend's paid by Vivendi.

There is an option given to use the interim dividend to acquire some Bolloré stock at 4,35 euros.

Blue Solutions published it's first positive EBIT (3,6 MEUR during the first semester) which is explained by an increase in the sale batteries (+35,3% due to the Bluecar and to Bluestorage) and a decrease in the manufacturing cost of goods sold.

Cheers!

Jeremy

Long Bolloré galaxy.

 

 

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  • 8 months later...
  • 2 weeks later...

Yes. I am looking deeply at it. Looks very interesting atm. Based on relativly conservative assumptions I am seeing Bollore at a roundabout 20-35% discount to its fair value. If the thesis of MuddyWaters is right, we might also have discount of 40%-70%, which is really huge for a company like this in good shape.

 

There also seems to be a good chance to make money in the investment in Vivendi (which I am also researching at the moment).

 

I am having a deeper debate in a German forum - if you know German, i can drop the link.

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Yes. I am looking deeply at it. Looks very interesting atm. Based on relativly conservative assumptions I am seeing Bollore at a roundabout 20-35% discount to its fair value. If the thesis of MuddyWaters is right, we might also have discount of 40%-70%, which is really huge for a company like this in good shape.

 

There also seems to be a good chance to make money in the investment in Vivendi (which I am also researching at the moment).

 

I am having a deeper debate in a German forum - if you know German, i can drop the link.

 

I have a smattering of German and my interest has been piqued by this company. I would appreciate the link.

 

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With the rise of correct auto-translation software you don't 'need' to speak the language any more to understand most of the content. I love following www.vardebyran.se (by a member here) for instance but don't speak a word of Swedish. Just use Google translate :)

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http://www.wertpapier-forum.de/topic/42436-bollore/page__st__40 Here`s the link -  btw: last time I used google translate it was a bit messy. But maybe the reason was i used it for a translating from Albanian or Greek to German ;).

 

Both the Slavic languages (never tried Albanian per se, but Serbian is very similar) and Greek to English works quite okay. I used this many times in the past to book hotels on the cheap (in the past also to communicate with the hotel over email).

 

Thanks for the link

 

 

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