LSYN - Steel City Capital Investments Q1 2021 Letter

• Steel City Capital Investments, LLC is a registered investment advisor that provides investment management services to a long-biased investment fund and separately managed accounts. We adhere to a value-oriented investment in our pursuit of generating long term growth of capital for investors.
• In the first quarter Steel City Capital, LP gained 7.6% net of fees and expenses.
• History never quite repeats itself exactly. But fortunately for us, it rhymes. Earlier this year, the Partnership took a position in News Corp.
• Now moving on to valuation. SIGA’s current market cap is ~$540M. The balance sheet has nearly $120M of cash and no debt. Seeing as the company should be free cash flow positive through 2024, the entirety of the company’s cash balance is “excess.” Market cap, ex. cash, is therefore $420M.
• Carvana’s (CVNA) 4Q’20 results weren't particularly great. EBITDA was negative ($70) million, a stark turnaround on a sequential basis from a first-ever EBITDA profit of $21 million in 3Q'20.

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