Jim LebenthalOn Holding AGONONBUYAug 02, 2024

It reports Tuesday. Is worried over its quick management turnover.

Shares are falling 10% on a management shake-up. He suspects there's more at foot. Will grow earnings 25% annually over 2 years, and trades at 22x forward PE. If it's only a management change, buy it, but maybe more is at happening.

He added more. Brands matter in retail, and this is a winning brand. Expects strength this holiday season. Retail is a trade. Will sell the moment there is bad news in ONON.

Have done a great job diversifying into cars and the internet of things, both of which are growing 20% annually. Also, they are providing chips to Saudi Arabian data centres. Trades at 14x PE and pays a 2.2% dividend. No net debt, so hey can buy strategic companies or buy back shares.

They have the product that consumers want now. 

Doesn't understand why an analyst just announced a sell rating on ON. ON has grown into its multiple, 60x PE last year and now 29x PE. ON is a hot product and stock.

Likes it, because they adjust whenever there is a problem with their shoes.

Nike has fallen on hard times, and ONON has picked up the slack. He likes the new CEO. Buy partially in this volatile market.

He's liked it since the $30's. But trades at a high PE in the 30's like CMG. Buy weakness.

Is -19% this year, but peaked in January. It's a richly valued momentum stock, struggling in this market. Last week, they reported an excellent quarter: a big top and bottom line beat, accelerating revenue growth and strength outside North America. Gross margins beat, a huge EPS beat and issued solid full-year guidance. Net wholesale sales were up 29.1% and direct to consumer up 43.4%. Saw huge brand awareness growth last year.

Boasts 60% gross margins and 30% revenue growth.

It reports tomorrow. It's a pricey stock, but it's also growing like a weed. People love their shoes. Volumes are up.

Some brands like ON and Skechers are hot, and some like Nike are not. You must pick your spots in this sector.

Their products are very well-made and loved by many. Are a winner in leisurewear. Up 12% in a month.

It is an uptrend and looking OK. It is somewhat expensive so could pull back to the trend line. Could be OK for legging in.