Random Ramblings April 2025

In this month’s episode of Yet Another Value Podcast, host Andrew Walker goes solo with his April Ramble, recorded just before a whirlwind travel schedule kicks off. He opens with an update on KROS, a position he's long, discussing the company’s surprising move to evaluate strategic alternatives and what it reveals about investor skepticism in the busted biotech space. Andrew continues with a candidcritique of the biotech sector’s structural inefficiencies, urging investors to push harder on corporate governance rather than avoid the "activist" label. From there, he explores how stock-based compensation can become more damaging when share prices fall and reflects on the mental and strategic discipline needed in volatile markets. He closes with thoughts on AI's evolving role in investment research and the importance of continuously improving one’s toolkit.

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[00:00:00] Marketvolatility and initial thoughts on KROS

[00:02:11] KROSstrategic alternatives announcement and investor response

[00:03:25] Marketskepticism despite positive news at KROS

[00:04:38]Encouraging shareholder engagement during the KROS review period

[00:05:09]Ongoing biotech investments and calls for rationalization

[00:06:25]Hesitancy from institutional investors to go activist

[00:08:02]Challenges in pursuing activism and protecting future deal access

[00:08:54] Thebroken incentives in biotech’s current market environment

[00:10:22]Thoughts on stock-based compensation and company dilution

[00:12:48] Howdeclining stock prices magnify dilution effects

[00:14:06]April's turbulent market dynamics and investor behavior

[00:15:13]Importance of maintaining process and staying focused

[00:16:39]Evaluating portfolio risk/reward in volatile markets

[00:17:23]Spotting opportunities through environmental changes like tariffs

[00:20:06] Theimportance of staying in research mode during swings

[00:21:17]Shifting focus to long-term projects when markets are too noisy

[00:22:49]Leveraging AI for research efficiency and insights

[00:24:41] Finalthoughts on adopting AI and its growing importance in investing

[00:25:53]Preview of Andrew’s upcoming vacation and travel plans

[00:26:27]Closing remarks and looking ahead to next month

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