SumZero & AlphaSense Investor Pitch Day

4 smid cap trade ideas walk into a bar

Publishing note: Random Walk is going to experiment with a different publishing cadence over the next few weeks (more details forthcoming). I will endeavor to trade some frequency for depth, at least some of the time.

• an ISP provider buys a bunch a fiber that no one else wanted

• there’s only one place for DoD-cleared job-seekers to seek and be-seeked

• will upgrade transmission lines for recurring revenue

• luxury ecommerce, but good

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SumZero - AlphaSense S-Mid Cap pitches

I went to the SumZero - AlphaSense investor conference last week, and the middle segment included some S-MidCap pitches.

I like these pitch-events.

• A brief summary of the pitches is below, and you can get the full transcripts here.¹

• Personally, Robson’s DHI Group pitch was my favorite, but they were all good.

• I will have more thoughts on the keynote from Dan Rasmussen later this week.

Of course none of this is investment advice or a recommendation to buy or sell securities and none of it should be relied on for anything under any circumstances, and you should do your own homework on everything because both Random Walk and all the participants are idiots who should never be trusted for anything. 

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Nitin Sacheti – Papyrus Capital

Cogent Communications (CCOI) CCOI 0.00%↑ - AI infrastructure, fiber and ISP

• Cogent provides ISP and related services primarily to SMEs. Stable revenue and margin profile.

• Catalyst is recent $1 acquisition of Sprint’s fiber network and related assets—basically long-haul fiber connecting towers that no one wanted and was burning money.

• Plan to is to combine with Cogent’s existing 12,000 mile fiber network of “metro rings,” connecting office parks to data centers—crucial to connecting data to compute, especially where redundancy is key (and a competitive advantage).

• WAVES is one of the only growing telecom segments—estimated 7% CAGR for the next six years. Already 10% of the way to 2028 guidance, and each connection is $100M in revs. Not showing up in financials yet, because revenue lags signups, but soon market will begin pricing on the backlog (while CapEx burns off).

• Other “hidden” assets include ~$1bn in data centers for sale, and “dark fiber.”

RW Take: Idk enough about this to evaluate one way or another, but always like a ‘one-man’s trash, is another man’s treasure’ story (and misallocation of assets is always fun). That the catalyst for the sale was DOJ strong-arming (who insisted that no one be fired from the fiber business after the Sprint-T-Mobile merger) is icing on the cake.

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Edward Robson – 2717 Partners

DHI Group (DHX) DHX 0.00%↑ - DoD job-finding and recruiting marketplace