This week, Third Point’s Dan Loeb wrote a letter to Disney urging it to spend more on content. We agree. Disney’s stock has languished this year due to the havoc COVID has unleashed on its business model. Longer term, we think Disney’s streaming service could be worth more then the stock today.
Obex’s fundamental research process is focused on secular change in the TMT and Consumer sectors. We seek to differentiate between fundamental business analysis and security analysis. Before deciding if a security’s pricing and positioning merit a long or short position, we analyze the four pillars of business fundamentals (Secular Factors, TAM, Competitive Advantage, Business Model) in order to determine if this is a “good” or “not so good” opportunity.