CTTOF - CTT - Correios De Portugal: Meaningful Evolutions Under Our Noses

2025-01-29 21:15:00 ET

Summary

• Investors often miss the cumulative impact of small changes; it's crucial to frequently re-evaluate investment theses objectively.
• CTT has transformed significantly, with its express and parcels business gaining market share, cutting costs, and improving margins.
• Recent transactions, including the acquisition of Cacesa and a JV with DHL, are expected to be highly accretive to CTT’s earnings.
• CTT’s potential fair value is €10-14/sh, driven by strategic deals, operational improvements, and management’s alignment via share ownership.

The following segment was excerpted from Maran Partners Fund's Q3 2024 Letter

I recently caught up with a family that was an early investor in our fund. This family’s children were little when I last saw them a few years ago. More recently, they were, well, not so little! Yes, I was the lame adult these kids barely knew saying some variation of “my, how you kids have grown.”...

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