Soho House (SHCO)

It went public in 2021, plunged in 2022, doubled, but still badly lags its IPO price. What's interesting is its core membership business. It started in London and has expanded internationally. They select members, favouring creatives. Maybe that's why the stock didn't start well, because they didn't include others, like portfolio managers. Q3-2023, membership rose 21% over the year before and 3% from the previous quarter. It won't accept members in New York, London and L.A. this year. They're getting popular. Their most recent quarter saw 13% revenue growth (from recurring revenue membership fees). Not pleased they're a long way from a profit, but they're moving in the right direction. EBITDA more than doubled last year, but they need to invest a lot to build out properties. They've slowed down expansion to improve margins. They want to go free cash flow-positive this year. They got killed in their last quarter, but didn't comment on that. Bottom line: a spec play. You can buy a small position, then buy more if management gives a good forecast. The risk-averse can wait and watch.