Arnold Magnetic Technologies

[Heat.Beat]

I’ve been hearing about them for awhile…

Looked into investing as they have an inside track in the DOW.

Unfortunately, they are embedded in a mess called Compass Diversified.

As I dug in a bit I found they are owned by somewhat of a clown show which strikes me as a bunch of jock athlete trust fund babies who started a business buying things they thought were cool like them…

They bought a company for 150m that makes sports stuff
They bought a company for 160m that warms camping food
They bought a company for 530m that makes cool hiking gear insulation
They bought a company for 454m that makes athletic braces
They bought a company for 253m that does cool packaging and insulation
They bought a company for 408m that does cool gear and apparel
They bought a company for 380m that does really cool personal hygiene products
And, in the mix they bought a company for 129m that makes actual defense-quality rare earth magnets to spec….

They’ve had board issues, etc.

Arnold is like 5.39% of their cool portfolio

Hard Pass- spin it off and we’ll talk, it doesn’t fit your mix, anyway

 

[John]

Isn't it annoying when these companies are structured like this!!!

Getting exposure to magnets is HARD. Most are in private hands...and even when they are listed...they are usually a small part of a larger diversified organisiation.

 

[Heat.Beat]

Yes there are some strange bedfellows out there for sure! This one kinda struck me like Starbucks having a satellite division..
I was looking at a much smaller Canadian company awhile back that was set to blow up the RE mining world and oh by the way they were also into cannabis growing/distribution.

Along the magnet track, what do you think about Shin-Etsu ( otc SHECY or SHECF)? Big outfit like Solvay with a pearl inside, but I haven’t dug very deep yet

 

[John]

Shin-Etsu - Mainly a chemical company. I think magnets is less that 10% of their revenue (don't quote me...that is from memory).

Yeah...Solvay is much the same (in terms of processing). But the one I would love to go public is :

Carester - Your partner of choice for rare-earth processing

Europe's partner of choice for rare metal mining - Caremag, a unique project for the production of rare earth oxides in ...

www.carester.fr

I believe these guys are mostly ex-Solvay....and focused on Rare earth processing....

If you can find me a slice....let me know!