Ulta Salon Cosmetics and Fragrance Inc. (ULTA)

(A Top Pick April 20/18 - Up 2%.) Business has been good. Late last year it picked. Growth has slowed but still looking at mid-teens next year. He would still be buying here.

A great combination of new store openings and same-store sales increase. They own 1000 stores and plan to open another 100 this year. Multiples came down with fears that Amazon was going to enter the cosmetic space, making it very reasonably priced now. Yield 0%. (Analysts’ price target is $246.95 )

(A Top Pick Jan 26/17. Down 13%.) Got stopped out, but had made money on it. It had looked like something that could not be Amazonized, but he was wrong. It started to fall apart in the summer.

They have their own line of beauty products. They also have solon services within the store so they are creating an experience to attract the buyer into the store. It is a unique play within the consumer space. (Analysts’ target: $253.50).

A low-volume name that is doing things that are considered to be a little bit Amazon proof. The stores are not in big malls, but are off in the power centres on the sides. They have been growing ad hoc, but now are starting to get logistics in place, merchandising technology, loyalty programs, mobility, Internet and it is all coming together. It still has lots of legs left. (Analysts’ price target is $301.06.)

Very good management. Likes the segment and its growth profile. It can have a little torque, so you might want to use trailing stops. When it comes off, it can come off pretty hard.