$TPB: can Turning Point Brands be the third player in nicotine pouches? | Saberpoint Capital

SPEAKER_1 (0:01)

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Andrew Walker (0:28)

You're about to listen to Yet Another Value Podcast with your host, me, Andrew Walker. Today, we've got George Baxter from Saberpoint Capital on. We are going to be talking about Turning Point Brands. The ticker there is TPB.

It is a stock with a really passionate follower of value investors, investors who are interested in nicotine pouches, all this sort of stuff. Really fascinating growth trajectory. Lots to talk about where we are going to talk about a lot of it. So rather than continue to ramble on, I'll get right to the podcast with George. But actually, I won't get right there because first, a word from our sponsor, and our sponsor is Trata, trata.com. I've been saying it for basically a year at this point. If you like this podcast, you will like Trata. Trata is two by-siders who hop on and talk, much like this podcast, about a stock that, well, in this case, generally that they're both invested in, and they'll talk about the risks, the opportunities, all that sort of stuff that they're seeing when they think about the stock. And what I really like, it's two people who know the stock well, so they're not just saying, hey, I've got this at 10 times this year's number. Do you have this at 11? Do you think it's worth 12? Like, no, they're actually going on. They're saying, hey, what do you think about margins? What do you think about competitor acts doing this? What do you think about all this type of stuff? And look, I find it fascinating. My AI, one of the first things it does, whenever I'm looking at a stock company, it goes and it looks at Trata and sees what people are saying about it.

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All right. Hello and welcome to the Yet Another Value Podcast. I'm your host, Andrew Walker. With me today, I'm happy to have on for the first time, George Baxter from Saberpoint Capital and fellow board game enthusiast, as anyone watching on YouTube can see behind him. George, how's it going?

George Baxter (2:22)

It's going pretty well. How are you doing?

Andrew Walker (2:24)

I'm doing, I'm doing well. I'm super excited to talk about the company we're going to talk about today. Followed them for a long time. Really excited to cover them. Before I get there, remind everyone, nothing on this podcast is investing advice. There's a full disclaimer at the end of the podcast and in the show notes, if you want to go check that out. So George, the company we're going to talk about today is Turning Point Brands. The ticker there is TPB.

I followed them for 11 years. The story's really evolved. I know it's very popular among, there's a concentric circle of value investors and investors who like tobacco slash nicotine and it's very popular among both. So I've rambled enough, I'll just turn it over to you. What is Turning Point Brands and why are you so interested in them?

George Baxter (3:01)

So like you, we've been following Turning Point Brands really since our inception. We just had our 10-year anniversary at Saberpoint. And Turning Point was literally one of the first few companies that we invested in.

But Turning Point is really interesting. It has a pretty long history. I won't go into too much detail, but it was a distressed debt private company initially. And there's an investment fund that's kind of a hybrid private equity distressed debt slash hedge fund called Standard General.

Andrew Walker (3:40)

I'm just laughing because it's a trip down memory lane. Yes, yes, yes, yes. Exactly.

George Baxter (3:45)