Yorkie Bars and a Movie

§Yorkey Optical (2788.HK)

On 11/14/2021, I published a recent investment idea, Yorkey Optical International. No, they don’t make Yorkie bars. No, I will not buy you a Yorkie bar. Fun fact: it costs ~72 Yorkey Optical shares to buy a Yorkey bar!

The situation can be summed up as follows:

On October 15, 2021, the directors of Yorkey Optical agreed to sell the company to Asia Optical International, a 20%+ holder for $0.88/share. Shares can be bought for $0.85/share. The business is probably worth $1.10, and can be liquidated for $0.93. A large holder, who can single-handedly block the transaction, has a similar valuation- which means that a) the bid price will be raised or b) you are buying an OK business below liquidation value.

§Read the entire write-up here!

2: Thoughts

§$10,000,000,000

That is how much Meta (previously Facebook) will invest in the Metaverse over the next 12 months. $10 billion will be going towards their Reality Labs segment- which includes hardware, software, and content1.

Two Thoughts Here:

Think about this: how many people can really say that they are trusted enough by the people around them to spend 20% on a single bet that may not even pay off? T his shows the power of Zuck (and super-voting shares).
Is Meta showing their hand too soon? In a recent talk with Boston College students, Mohnish Pabrai mentioned something that Warren Buffett said to him:

A whale only gets harpooned after it surfaces

The idea is that nobody will compete with you if they do not know that you exist. Think Amazon Web Services. They gained significant market share in the cloud computing market, as Microsoft and Google just lollygagged. Then, in 2016, Jeff Bezos told the world that they hit $10 billion in revenue. Suddenly, Microsoft and Google started investing more in their cloud services businesses, making business even harder for Amazon!

I am nervous that Meta may have played their hand too early in revealing how big and how quick they are going into the Metaverse. Now, other companies will start investing in the Metaverse even more!

However, if the board can have this much trust in the Zuck, why shouldn’t I? He always seems trustworthy!

Dad- this is your cue to stop reading!!

§Will Moviepass Make a Return?

A running joke in my family is that my dad ruined Moviepass for everybody.

For about a year- my aunt talked about how Moviepass was the greatest invention on earth. For $10 a month, you could get unlimited movie tickets at most theaters! That is a fantastic deal for movie-goers! However, it was not a fantastic deal for shareholders:

The thing is, my aunt had been talking about this service at every opportunity- and my dad was clearly interested. Finally, he capitulated and bought Moviepass. You can see about where he bought Moviepass- the grey arrow in the picture.

As you can probably guess, Moviepass was too good to be true and promptly shut down after my dad joined- leaving the only explanation to be that my dad cursed the business! I don’t think my aunt can ever forgive him for such as curse.

However, it looks like Moviepass may make a comeback! The co-founder bought the business back in 2020- for less than $250,000. He plans on re-launching the service soon . For those of you who want to be notified when the service launches (@Aunt Amiee), **here is a link. **

For those of you reading, make sure that this information does not get back to my family. We cannot afford to lose Moviepass again!