Richard Sosa sees value in DFIN's niche
Richard Sosa, host of the Riches in Niches podcast, discusses his thesis on Donnelly Financial (DFIN). Despite a strong recent run, DFIN trades at a value multiple, and Richard breaks down all the reasons why he thinks the stock is too cheap and why DFIN is a huge beneficiary of the current SPAC / IPO boom.My twitter background thread on DFIN: https://twitter.com/AndrewRangeley/status/1460661067395305479?s=20Riches in Niches podcast twitter: @RichesNichesPodChapters0:00 Intro1:40 Some background on Richard4:10 Why Richard likes niches5:10 DFIN overview10:45 DFIN's classic spin dynamics14:35 DFIN's public to private headwinds before the SPAC boom18:30 Regulatory headwinds in the print business21:55 More DFIN background29:30 What the capital markets business does and how it benefits from the M&A / SPAC boom37:00 Comping DFIN to Workiva39:40 How sticky is DFIN?43:20 Breaking down DFIN's valuation46:30 Is DFIN's shifting segment disclosure concerning?50:15 Why is the market trading DFIN at such a low multiple?53:25 Is management and the board fully aligned here?57:00 DFIN's history of capital returns1:02:25 More on DFIN's multiple1:04:55 Closing thoughts