PARTIAL BUY
They make snowmobiles and enjoyed a surge during Covid, but a correction since as people are travelling. DOO is cyclical and shares are near the bottom of the cycle now. A best in class company. You can start nibbling at this.
Consumer Products
BUY
Best in class retailer that he's watching as it has pulled back. They just reported earnings which were healthy. Walmart and Target struggle with inventory while Gap has too much and are guiding down sales. LLL caters to middle/high-end consumers so there's no sales decline. Strong demand and growth outlook. A good long-term hold. He owns Nike instead.
clothing stores
DON'T BUY
Internet stocks have been crushed in the past year, lacking profits. These stocks are like catching a falling knife. The digital economy is still young. The CEO getting more voting power today is part of a trend of more CEO power. If you're buying SHOP, you're investing in the management. He's not.
0
DON'T BUY
Their gene-editing biotechnology has lots of promise, but it's too early to tell, speculative. Buying this is a lottery ticket.
biotechnology
DON'T BUY
E-car sales are good in China, better than here. A high-grow company but lacks profit and cash flow, so the market struggles to put a value on this. He's also concerned about the long-term Chinese economy. China is no longer in the build build build phase, but is building its middle class. Too speculative for him.
Automotive
TOP PICK
Customers overlap with LULU. ATZ sells women's fashions but is starting to move into men's. They've had great success expanding into the US with 40 locations which will reach 100 in markets like Atlanta. Lots of runway. A US store generates $16 million revenue and this has been improving along with e-commerce sales. Boasts healthy gross margins and strong balance sheet. Top management. It will trades at 19x 2023 earnings which is not expensive. (Analysts’ price target is $67.45)
specialty stores
TOP PICK
Valuation is so cheap now and carries no debt. They're buying back stock. Trades at only 8-9x PE so there's lots of room to grow. They suffer chip and parts shortages, but these are starting to abate and shortages impact all companies anyway. Good managers. (Analysts’ price target is $76.00)
transportation equip & components