In Episode 38 of Magic Markets, hosts The Finance Ghost and Mohammed Nalla (Moe-Knows) each chose two interesting US-listed stocks for discussion. These aren’t stock picks in the traditional sense, but are rather companies that provide great learning opportunities about the market.

The Finance Ghost chose gaming hardware company Corsair ($CRSR) and golf business Callaway ($ELY). Moe chose medical distribution giant McKesson ($MCK) and pharmaceuticals business Moderna ($MRNA), which has become a household name thanks to the Covid vaccines.

The show offers institutional-level thinking in an easily digestible format. Magic Markets is your invitation to be part of our conversations about the markets.

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  • Kumar
    Posted Aug 16, 2021 at 8:27 pm 0Likes

    Some constructive feedback here – your analysis on Callaway VERY lazy and pretty disappointing.

    Callaway just merged with Topgolf, a massive platform that has a pathway to grow EBITDA from $100M to $1bn+ and has virtually no competition. They are opening venues at 30% incremental margins and leveraging existing overhead at a tremendous rate. These platforms are worth a lot if the concept works. Just look around, platforms like Shake Shack trades at 40x EBITDA.

    To label the business as just a pandemic winner is pretty lazy…especially with all the complexities here

    • Posted Aug 19, 2021 at 7:59 am 0Likes

      Hi Kumar – constructive feedback always welcome! This wasn’t a deep dive into Callaway, but rather a high-level discussion on the business designed to help people find interesting companies to look at in more detail, something you’ve clearly done on Callaway!

      I saw the Topgolf deal and it’s really interesting for sure. However, there are always many “ifs” in these strategies and “pathways” and “total addressable markets” – sometimes they work out and sometimes they don’t. People thought the same of many JSE-listed companies around 2015/2016 which traded on big multiples due to the promise of growth, destroying a great deal of shareholder value in later years.

      So don’t get me wrong, it may do well. I’m just pointing out that it’s not exactly cheap at the moment. And yes, people are willing to pay fortunes for QSR businesses for some reason! I’m much less of a fan personally. I would never ever pay those multiples for those businesses.

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