15 Comments

Very interesting company and insightful analyses. Thank you.

Can you share your perspective on the market structure? In particular, I am wondering why the innight service offered by DHL or FedEx would not be able to compete LDB away. Isnt route density, and thus scale, crucial? Thank you for the additional color.

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Thanks Tristan, really appreciated!

If Lindbergh would only offer in-night delivery they would not be able to compete against these giants with their scale benefits.

What makes them special is that they have the focus on their niche (technicians). They deliver the spare parts directly into the van of each technician. They have the keys to all these vans. They take care of the waste that the technician had produced during the workday, the PPE they need, was the working clothes and so on. Taking care of all these small services has a big value for the technician and in the end for his company. Lindbergh is able to offer all these small services because they have a focus on their niche (technicians in MRO) and know the needs of them. I think this niche is just not interesting enough for a „normal“ courier service

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Great write-up, really liked reading it.

I was wondering if you have any insight into competitors and what makes this company really unique. I.e. what is their competitive advantage?

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Thanks! Well i wouldn‘t say that they have a huge moat. They have discovered a small niche that is not really interesting for big courier/delivery services. With its platform they‘re integrated in the organisation of it’s customers and esp. for wandte managemen serveral certifications are needed. So there definitely some barriers for competitors to enter the market, but the service itself doesn’t have a real moat imo. In their investor presentation you can see a list with company’s that offer some similar services, but nothing really comparable imo

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With nothing comparable you mean the technology platform of Lindbergh? Am curious how much that is really valued by employees of customer companies.

By the way, do you have any idea why inventory is so low? Would expect it to be higher when they serve spare parts, etc.

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Primarily the kind of value adding services they offer. Most competitors only offer night delivery and maybe also in-boot, but no waste management for example.

Lindbergh doesn’t own the spare parts. They just deliver the spare parts of its customer, but they own for example the PPE they offer

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Thanks for the great write-up. Would like to get your thoughts on the valuation - for a micro cap of this growth profile, would you think the 9-10x EBIT multiple not offer sufficient margin of safety?

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Given the quality of the business ,the growth profile and improving margins I don't think that the multiple is expensive

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Hi. Do you have some info why the skin in the game is not direct, but through the companies? Thanks

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I think this could have some legal/tax reasons

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Hi. I have a technical question. I would like to buy lindbergh on IBKR, but it shows that order quantity should be a multiple of board lot. It does not work even if i want 100 shares. Do you you something about it? Thanks

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you have to buy at least 1000 shares or a mutiple of it

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Ok. Thank you for the info. It is not a good news for me.

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Hey Matej,

from October 1st, you can buy 500 shares as a minimum.

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Thanks a lot for info. It is a pity that the price went up quite a lot.

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