Business

Moleskine SpA: Paper Is Not Dead

 

Moleskine SpA: Paper Is Not Dead by Brian Langis

  • Over the years Moleskine has delivered continued double digit revenue and EBITDA growth.
  • Solid balance sheet. Almost net cash (4.1m euros in debt).
  • The notebooks are popular amongst professionals, artists, hipsters, and collectors.
  • Slump in the share price is not justified. Moleskine is consistently matching or beating their targets. The market is not noticing.

U.S: OTCPK:MOSKY
Borsa Italiana Milan ISIN: IT0004894900, Bloomberg: MSK:IM

Moleskine is primarily traded on the Milan stock exchange Borsa Italiana under the ticker MSK:IM, where there’s plenty of volume. I will be referring to the Italian symbol for the article.

Note: Dollar amounts are in Euro € unless mentioned otherwise. EUR-USD 1.1025. Price of 1 EURO in USD as of February 25, 2016.

Moleskine SpA (OTCPK:MOSKY) is an Italian manufacturer of luxury notebooks and other stationery items such as agendas, journals, bags and cases. The company might have an Italian headquarters, but its business is global. You would actually think it’s American with its Star Wars and Batman notebooks. Moleskine suffers from a lack of coverage. Except for one article in 2015 and (one in) 2013, there is no coverage on Seeking Alpha. Part of this article is to demonstrate this opportunity, and I sort of hope the article can spark further discussion on the investment merits of Moleskine. Throughout the article I will refer to journals, diaries, planners, agendas as “notebooks” for simplicity’s sake.

 

For the full article and valuation, it’s available on Seeking Alph