What I Worked On/Thought About This Week
A lighter week for public journaling...
What I Worked On/Thought About This Week
I write daily stream-of-consciousness reflections about my work and thoughts, posting them on X (@stockthoughts81) and compiling them here weekly. This helps clarify my thinking and documents my process, while hopefully sparking discussions with others. Sign up to follow along, and feel free to reach out to discuss!
2/25-3/2/25
What I Thought About/Worked On
$PRKS CC 0.00%↑ OI
PRKS seems cheap. There was some good info in the slides. Sponsorship as a $20m+ revenue opportunity. Hotels pushed to 2026. International stuff in the works. Perhaps most importantly - they are working on another buyback auth. I wonder what this will end up looking like from a governance perspective as far as Hill Path goes. The protections in place already seem pretty good. While lots of companies like to blame bad weather for results, hard to argue with this one given the 2024 hurricane season and their exposure to FL. I am not sure what the catalyst to unlock value here is. Just let the cash flow pile up, I guess? They did a large buyback in 2024 and market didn’t seem to care at all. Kind of strange.
CCOI also cheap. Though I can understand the price movement. This is becoming an “investor fatigue” situation. First you had waves demand being more diffuse than expected. So had to build the network out and only just at the start of this year did they really start to push waves. In some sense, given the backlog (and the gross adds picture that you can paint with the latest math including the fallout), it actually seems like the demand indication there is pretty strong. DCs supposedly going to be ready to be monetized by mid-year. Some already on LoopNet. I have not been a fan of how things have been communicated. E.g. finally offered some visibility into Corp declines this Q - supposed to last a couple more quarters. Not sure why this is visible now, but wasn’t in the past. It has lasted longer than I expected. And then how the backlog orders dropping out would work - I didn’t realize it was likely to happen all at once like this. But it makes sense - reaching out to people that ordered a year ago is kind of a shot in the dark. It’s amazing some of those people waited that long and still ended up placing orders. I am heading to their ATL Data Center Tour in March (open to public). Feel free to reach out if you will be there. I am not exactly sure what to look for still. And that one is already listed, so I suppose all available power is already unlocked (will check this before I go). Whereas others may only be at a fraction and working to get more power from the local utility. I don’t know how that works in terms of timelines, costs, etc. But for ATL it is more about the amount of interest. Also hearing ATL is big for waves. I think ATL-Houston corridor. And the credit quality of the interest. In case they end up securitizing. So I don’t know, we will see what I can learn.
I have mostly been writing in a private journal this week but wanted to at least produce something publicly, so this is what came to mind. Even if I don’t publish, it is important for me to continue to flex the writing muscle as often as I can (preferably daily).
Disclosure: none of this is investment advice and I/we may own positions in securities mentioned.