Karelia Tobacco Worth a Look?
Came across Karelia Tobacco from a write-up on ValueInvestor'sClub. They're the largest cigarette manufacturer in Greece and unlike most cigarette brands, their volumes have actually been stable over the last decade. Trades at just over 8x after-tax profits and has $400MM+ in net cash sitting on the balance sheet. It's a family-run business, but if they use that capital efficiently (they haven't so far) this could provide stellar returns. Would love some feedback from anyone who knows the industry/investing in Greece.
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Nathan Worden's avatar
@devinlasarre @dividenddollars Might have some thoughts based on their familiarity with the tobacco industry.

Would love to hear from someone investing in Greece too 🇬🇷
Ryan Henderson's avatar
@nathanworden Thanks Nathan, actually chatting over zoom with Devin in a couple hours so I'll see what he says
Nathan Worden's avatar
@ccm_ryan So cool to see the podcast released! Whimsical ordering of events 😄
Joshua Simka's avatar
Smoking in Europe is (surprisingly) so much more common than here in the US, as I was reminded when I went to Italy this summer. Family-run businesses tend to be pretty set in their ways. What's giving you hope that they would revise their capital allocation strategy?
Devin LaSarre's avatar
This is super interesting. Not a fan of it being based in Greece, but a very cool smallcap. Wild they are sitting on so much cash. Doesn't really line up with my thesis focusing on the majors/RRPs/future reg, but I'm going to have to dig around!

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