Podcast by Andrew Walker, a PM at Rangeley Capital, Yet Another Value Podcast

Yet Another Value Podcast

Podcast by Andrew Walker, a PM at Rangeley Capital

Yet Another Value Podcast is a new podcast from Andrew Walker, the founder of yetanothervalueblog.substack.com/. We interview top investors and dive deep into stocks and companies they are currently working on and investing in. While nothing on this channel is investing advice and everyone should do their own diligence, our goal is to frequently feature edgy and actionable value and/or event driven ideas. Please see our legal and disclaimer at: https://yetanothervalueblog.substack.com/p/legal-and-disclaimer

Equity Bottom-Up

<ul><li>IWG is the largest co working flex office company in the world, with brands like Regus, Spaces, HQ signature and The Lights</li><li>The company has been profitable and has grown through a capital light strategy of managed and franchise models</li><li>The stock is currently undervalued, with potential for significant growth in earnings and free cash flow from the managed business in the upcoming years</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

IWG is the largest co working flex office company in the world, with brands like Regus, Spaces, HQ signature and The LightsThe company has been profitable and has grown through a capital light strategy of managed and franchise modelsThe stock is currently undervalued, with potential for significant growth in earnings and free cash flow from the managed business in the upcoming yearsThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

1 Main Capital's Yaron Naymark on some general investor skepticism with $IWG.L thesis

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>IWG, the largest owner of coworking spaces in the world, is poised for significant growth in the next few years</li><li>Plans to double EBITDA by 2028 and transition to a more asset-light business model</li><li>Catalysts such as US GAAP transition and potential relisting in the US could drive stock price higher</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

IWG, the largest owner of coworking spaces in the world, is poised for significant growth in the next few yearsPlans to double EBITDA by 2028 and transition to a more asset-light business modelCatalysts such as US GAAP transition and potential relisting in the US could drive stock price higherThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Founder & CEO Bond Angle, LLC, Bond Angle, LLC

Vicki Bryan

Founder & CEO Bond Angle, LLC

Bond Angle, LLC

Insightful commentary and analysis on bond markets and market movers, including financial, economic, and industry catalysts and management shenanigans. 

High yield market investment research

Credit

It's official: <a href="https://www.smartkarma.com/entities/the-we-company-wework" target="_blank" data-smartkarma-citation="entities:28061:1" rel="noopener">The We Company (WeWork) (WE US)</a> has decided to <a href="https://www.bloomberg.com/news/articles/2019-09-16/wework-is-said-to-likely-delay-ipo-after-valuation-plummets" target="_blank" rel="noopener">pull its IPO for now, but still expects to complete it by yearend.</a>Don't hold your breath.This comes just days after WeWork <a href="https://www.businessinsider.com/the-we-company-ipo-wework-confirms-nasdaq-listing-governance-changes-2019-9?utm_source=notification&amp;utm_medium=referral" target="_blank" rel="noopener">filed an amended S-1</a> announcing plans to list its new shares on the Nasdaq index even as its IPO valuation continues to dissolve. Reuters had reported on Friday that deal insiders were considering an implied equity valuation of <a href="https://www.reuters.com/article/us-wework-ipo-valuation-exclusive-idUSKCN1VY1PB" target="_blank" rel="noopener">just $10-12 billion,</a> a stunning 78% drop versus the extravagant $47 billion floated since January. My analysis shows even $10 billion is too high.So it's not surprising that long-term backer and top investor <a href="https://www.smartkarma.com/entities/softbank-corp" target="_blank" data-smartkarma-citation="entities:27445:1" rel="noopener">Softbank Corp (9434 JP)</a>, arguably the most responsible for WeWork's incredible equity valuations, had <a href="https://www.ft.com/content/111f8e00-d346-11e9-8367-807ebd53ab77" target="_blank" rel="noopener">urged the company to scuttle the IPO</a> given the "cool reception" it's been getting.Yet WeWork is compelled to push on regardless, seemingly <a href="https://www.ft.com/content/f28474a2-d57e-11e9-a0bd-ab8ec6435630" target="_blank" rel="noopener">ready to concede to any terms</a>to get a deal done, because its financial condition is much more fragile than it has been trying to project. It has little time to waste and few alternatives.That means Plan B must already be in the works.Either way, risk has intensified for WeWork's overpriced bonds.Read on for Bond Angle analysis: How did WeWork get so expensive and What's next? Plus a new WeWork model, equity valuation and forecast, and more.

It's official: The We Company (WeWork) (WE US) has decided to pull its IPO for now, but still expects to complete it by yearend.Don't hold your breath.This comes just days after WeWork filed an amended S-1 announcing plans to list its new shares on the Nasdaq index even as its IPO valuation continues to dissolve. Reuters had reported on Friday that deal insiders were considering an implied equity valuation of just $10-12 billion, a stunning 78% drop versus the extravagant $47 billion floated since January. My analysis shows even $10 billion is too high.So it's not surprising that long-term backer and top investor Softbank Corp (9434 JP), arguably the most responsible for WeWork's incredible equity valuations, had urged the company to scuttle the IPO given the "cool reception" it's been getting.Yet WeWork is compelled to push on regardless, seemingly ready to concede to any termsto get a deal done, because its financial condition is much more fragile than it has been trying to project. It has little time to waste and few alternatives.That means Plan B must already be in the works.Either way, risk has intensified for WeWork's overpriced bonds.Read on for Bond Angle analysis: How did WeWork get so expensive and What's next? Plus a new WeWork model, equity valuation and forecast, and more.

Gravity Works As WeWork Doesn't; Now Plan B

Telco/Internet specialist

Kirk Boodry

Redex Research

<ul>
<li>The market cap of Vision Fund portfolio company <a href="https://www.smartkarma.com/entities/the-we-company" target="_blank" data-smartkarma-citation="entities:28061:1" rel="noopener">The We Company (WeWork) (WE US)</a> has fallen decisively below that of rival <a href="https://www.smartkarma.com/entities/iwg-plc" target="_blank" data-smartkarma-citation="entities:28219:1" rel="noopener">IWG PLC (IWG LN)</a> for the first time</li>
<li>Still despite WeWork's constant drag on portfolio returns including c. $500mn this quarter, Vision Fund remains on track to end the quarter in the black (+$2bn QTD)</li>
<li>The holding company discount appears to have stabilized at 35% but this seems a bit steep with markets volatile again and a move to 40% would not surprise</li>
</ul>


The market cap of Vision Fund portfolio company The We Company (WeWork) (WE US) has fallen decisively below that of rival IWG PLC (IWG LN) for the first time
Still despite WeWork's constant drag on portfolio returns including c. $500mn this quarter, Vision Fund remains on track to end the quarter in the black (+$2bn QTD)
The holding company discount appears to have stabilized at 35% but this seems a bit steep with markets volatile again and a move to 40% would not surprise


Softbank Group - Requiem for WeWork’s Premium Valuation

WeWork and Bow Capital SPAC (BOWX US) announced agreement on a SPAC merger that would allow WeWork to reach public markets in Q3 21 at a suggested post-money enterprise value of $9bn. Expectations for a deal of this magnitude have been well-telegraphed so the announcement is not a surprise whilst, since it is a SPAC deal, a lack of financial statements/history isn’t either. We do know how the $9bn value is being justified and it is a bit of a stretch: markets need to believe WeWork can double its in-office user base and triple overall users, even as ARPUs rise and the absolute level of operating costs declines. Meanwhile, the only public comparable <a href="https://www.smartkarma.com/entities/iwg-plc" target="_blank" data-smartkarma-citation="entities:28219:1" rel="noopener">IWG PLC (IWG LN)</a>  is roughly the same size with the same resources but has yet to recover value lost to the pandemic.

WeWork and Bow Capital SPAC (BOWX US) announced agreement on a SPAC merger that would allow WeWork to reach public markets in Q3 21 at a suggested post-money enterprise value of $9bn. Expectations for a deal of this magnitude have been well-telegraphed so the announcement is not a surprise whilst, since it is a SPAC deal, a lack of financial statements/history isn’t either. We do know how the $9bn value is being justified and it is a bit of a stretch: markets need to believe WeWork can double its in-office user base and triple overall users, even as ARPUs rise and the absolute level of operating costs declines. Meanwhile, the only public comparable IWG PLC (IWG LN)  is roughly the same size with the same resources but has yet to recover value lost to the pandemic.

WeWork - Still Asking for Way More than They Are Worth

Switzerland

IWG PLC operates as a holding company. The company owns and provides office space.

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IWG PLC (IWG LN)

1 Main Capital's Yaron Naymark on some general investor skepticism with $IWG.L thesis

IWG is the largest co working flex office company in the world, with brands like Regus, Spaces, HQ signature and The Lights The company has been...

Yet Another Value Podcast

Iwg (IWG) - Thursday, May 30, 2024

IWG, the largest owner of coworking spaces in the world, is poised for significant growth in the next few years. Plans to double EBITDA by 2028 and...

Value Investors Club (VIC)

Gravity Works As WeWork Doesn't; Now Plan B

WSJ reports that WeWork will file bankruptcy next week, pending ongoing discussions with its beleaguered creditors. Surprised? You shouldn't be....

Vicki Bryan

Softbank Group - Requiem for WeWork’s Premium Valuation

WeWork’s market cap has fallen decisively below that of rival IWG for the first time as concerns on operating losses and free cash flow rise. It’s...

Kirk Boodry

WeWork - Still Asking for Way More than They Are Worth

WeWork's SPAC deal values it at $9bn but predictably that is too high. We look at fundamental reasons why although as a SPAC merger, values depend...

Kirk Boodry

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