AJ Secrist from Firstlight Management on Lamb Weston $LW
AJ Secrist from Firstlight Management discussed his thesis for Lamb Weston (LW). LW is a very strong business, and AJ thinks the market is missing just how much margin upside there is as COVID era deals with large customers reprice and the company laps 2021’s disastrous potato crop. Chapters 0:00 Intro 2:25 LW Overview 9:35 LW Valuation 13:00 Isn't LW fully valued at these prices? 19:25 Discussing the current potato crop 26:55 Global margin upside 28:35 Why is scale an advantage for LW? 31:45 Why will LW's margins accelerate now? 34:30 Industry demand and supply dynamics 37:20 Capital allocation and share buybacks 41:30 Management incentives and share price targets 45:00 Potential private equity or BRK end games 48:10 A little more discussion on LW's potential P/E multiple 51:10 What happens if we have a low carb craze again?