Antithesis Capital

Antithesis Capital

Investment Management

We are an investment management firm that thrives off our contrarian point of view.

About us

Industry
Investment Management
Company size
2-10 employees
Type
Privately Held

Updates

  • New Purchase: SideChannel OTCQB: SDCH SideChannel is a cyber security consulting and SaaS firm. Their revenues have been steadily growing from 2021-2024: 2021: 2.79M 2022: 4.78M 2023: 6.57M 2024: 7.4M The most compelling thing about Sidechannel is managent’s expertise, and the contracts they have begun to acquire. Their CEO Brian Haugli is former DoD and Pentagon. Their CTO Nick Hnatiw is former Department of Defense. Director Robert Brown is a retired US Army General. In 2023 and 2024, these connections led to contracts with the Association of the US Army and the US Department of Defense. The contract with the DoD was won in October 2024 and has not yet shown up in their financial statements. As a result of this contract, Sidechannel’s SaaS, Enclave, is now available through the GSA and NASA SEWP contract vehicles, making it easier for other government organizations to implement Sidechannel’s services. For such a small company, Sidechannel’s balance sheet is rock solid. They have no debt and 40% of their liabilities are in deferred revenue. Sidechannel has outstanding warrants that expire in 2026, which prevent them from taking on debt to grow. The exercise price of the warrants is well above the current share price, so dilution is highly unlikely. Until the warrants expire, they are using cash flow from operations to finance their growth, which has recently turned positive. Sidechannel has recently announced they will vote to approve a reverse stock split at the next annual meeting on February 12, 2025. This may serve as a catalyst, given many investors view securities trading for just pennies as too risky. Sidechannel’s board takes all of their compensation in stock options with an exercise price of 18 cents per share. With the stock currently trading at 4 cents per share, it is obvious that management believes in the company and its future. Average Price: $0.032

  • A lot of positive news has come to light for our recent investment Diageo. Guinness demand continues to explode, and UBS upgraded the company to a buy. A recent Fortune article highlights Guinness supply constraints in the UK, and its growing popularity in the United States. We wholeheartedly agree with the US assessment. One major reason for our investment in Diageo was the virality of “Splitting the G.” Ordering a Guinness at the bar, taking approximately two gulps, and trying to perfectly stop the beer to rest right upon the line in the “G” has taken social media by storm. It has made young adults try a beer that they once viewed as old school or too heavy and turned it into the cool beer. Splitting the “G” is growing in popularity every month on apps like Twitter. Meanwhile, Guinness is slowly becoming a common order for men under 30 in the US, and we believe it is here to stay.

    • No alternative text description for this image
  • New Purchase: Diageo Plc NYSE: DEO With established, marquee brands like Jonnie Walker, Don Julio, Guinness, Captain Morgan, Smirnoff, and Hennessy. And up-and-coming names like Casamigos. Diageo stands above the rest in an industry that’s struggled recently. We believe Diageo’s current PE multiple is not indicative of their moat. Demand has wained, and the business has felt the effect of higher inventory costs. However, we believe no one is better positioned for long term success in this industry. Average Price: $119.00

  • Many are wondering how to invest with a new administration in power. Here are the only two things you need to know: 1. If you buy mediocre businesses at historically high earnings multiples, your prospective returns will be low. 2. If you buy great businesses at low earnings multiples that have a history of reinvesting capital successfully, your prospective returns will be high. This may mean sitting on your hands for a bit, looking at assets outside the US, or searching for inefficient markets inside the US.

  • Our First Purchase: Westell Technologies OTC: WSTL Overview - Cash: $17.7M - Short Term Investments: $2M - A/R: $6.6M - Inventory: $9M - Total Liabilities: $5.2M - Market Cap: $18.5M This company is trading at an extreme discount to intrinsic and liquidation value. They have been profitable the past three years. Their cash generation was organic and not a result of share issuances. With an 18.5M market cap, Westell has been neglected by institutional investors, evidenced by their extremely low volume. Buying WSTL at this price is like buying a dollar for fifty cents and getting a free business to go with it.

  • Philosophy: Traders vs Investors In uncertain, volatile times, it is important to remember the differences between the trader and investor. Traders - Focus on short term price movements - Panics when the market declines - Believes they can predict what will happen tomorrow - Lets their emotions get the best of them and suffers from FOMO Investors - Focus on long term value - Happily accepts discounted prices - Knows the market is unpredictable and makes decisions amidst uncertainty - Makes rational decisions based on price and value

  • Contrarianism & The Importance of Business Quality When investing, being a contrarian is extremely important. However, it is not good to be a contrarian just for the sake of being a contrarian. In the public markets, there are countless, terrible businesses that earn low yields on invested capital and have little to no competitive advantage. The stock prices of these businesses go down for a reason. When analyzing potential investments, you should approach every company with with as much neutrality as possible, not allowing last week's price movements to mold your opinion on the company. Instead, shape your opinion based on the quality of the business, its moat, and price. If an economy or industry is struggling, causing nearly every company's stock price to decline 20-30%, seek out the indestructible businesses and say thank you for the discount.

  • At Inception: Antithesis Capital Antithesis Capital was created in 2024 with a contrarian, value investing philosophy. Antithesis - not to say we don’t have a thesis. We do. More so, an attack on herd mentality and common sentiment - your thesis - which tends to drive the market in the short term. We specialize in evaluating markets that have fallen out of favor with the investing public and strive to form a logical, long-term opinion that drives our decision making. For example, markets that the general public calls “too risky” or uninvestable” are our bread and butter. Ironically, Antithesis operates under the concrete assumptions that all markets go through cycles and every asset has intrinsic value. Obviously, semiconductors have had enormous momentum over the past year, but it hasn’t always been this way. And, odds are, it won’t always be this way. Further, when labeling something as “uninvestable,” you throw price completely out the window. As Howard Marks says: there is no asset so good that it can never be too expensive, and there are few assets so bad that they can never be too cheap.  

Similar pages

Browse jobs