FNF #9
By Handzalah / Black Swan Research 29 September 2026, 8:50pm MYT
Topics discussed in tonight’s FNF:
- Oriental Kopi business struggles which is not uncommon in F&B sector
- Declining share price post-IPO (Oriental Kopi)
- Part of the decline is due to expansion weighing on margins in the short-term
- However, competitors have come to eat Oriental Kopi’s lunch
- One member broadly studied why a gambling company, Evolution AB, had such attractive investment propositions but see shares falling from all time highs
- The study on Evolution AB is just to learn what mistakes we can avoid when choosing businesses to invest in
- Evolution AB is held by Peter Partnership Fund
- Some notes on Evolution AB’s business:
-Capital light as it provided the technological infrastructure to the casinos
-Sell their products to casinos and not gamblers which somewhat removes the gambling risks
-Clear tailwind in online casino market
-Net margins around 50% which is one of the best in the world
-Cheap valuation questions the member as to why the opportunity exists
-Hijackers in Asia, regulation tightening in Europe, and changing economics of business in North America was the main risks - Conclusion on the Evolution AB research is to be cautious of extremely high growth rates and do not extrapolate it to the future because there are inherent risks to be accounted for
- Frontier AI are lazy or lacks depth therefore your prompt might need to be long to get the output you are really looking for
- Files that you remove from the PC (i.e. erased from recycling bin) is never fully deleted as their meta data can still be retrieved
- Jev AI makes computation cheap
- US has 70% of the world’s computation
- China has to compete in AI by having lower cost thereby becoming more efficient because their compute power is minuscule compared to US
- Waste food business idea where we purchase food from F&B businesses at end of day for a discounted price and preserve the food to resell
- Optimist vs pessimist view on future of AI