WAIT
Under pressure. Topline and revenue growth is slowing from 50% to 40% range. Doesn't make any money. Fundamentals still quite good. Looks to reach profitability in 2023. Investors will come back at end of interest rate hike cycle, hopefully later this year. Continues to add customers. Well managed. Lots of tailwinds in online learning.
0
TOP PICK
Great short, medium, and long-term investment. Very well managed. Great balance sheet. Good long-term, predictable growth. Foot traffic is up, as is basket size. Same store sales growth is quite robust. Great purchasing power and scale. 3% annualized earnings growth for next 3 years. Lots of free cash. Majority ownership in South America's Dollar City is growing significantly faster than Canadian segment. Yield is 0.29%. (Analysts’ price target is $79.31)
Consumer Products
TOP PICK
Population is outpacing supply, so there's good demand for their properties. Well capitalized balance sheet. Housing weakness gives them the opportunity to buy big packages of homes to meet targets. Own 31K properties; goal is 50K by end of 2024. Fragmented industry. Excellent operators. 98% occupancy, low turnover. Yield is 2.23%. (Analysts’ price target is $20.60)
property mngmnt / investment
TOP PICK
Strong business, high barriers to entry. About 30% market share of aviation training. Good global footprint, high quality customers. Good tech platform. Airline challenges provide tailwinds. 25-30% estimated earnings growth for next 3 years. In troubled times, still preserved its clean balance sheet, maintained stable margins. Buy here, well rewarded over 2 years. No dividend. (Analysts’ price target is $40.29)
transportation equip & components
COMMENT
Better to own Clean Harbors, but likes the concept behind DAR (recycling refuse from restaurants) and its shares are down too much. A good stock, but not great.
food processing
DON'T BUY
They announced a 4-for-1 stock split. GME is controlled by a few investors who will move up these shares. Only BME and AMC are controlled by small groups.
specialty stores
BUY
Down 30% from its peak and not it's worth buying. Has long owned and liked this. They do B2B transaction, which thrived during the pandemic. The stock held up even when the world was moving back to normal, like last April. They reported a strong beat and raised their forecast on April 19. A week lower, shares slid for 9 sessions at 28%, because Amazon at that reported that it built too much warehouse space. So Amazon slashed their capex. Amazon accounts for 5% of PLD's net effective rent, their biggest customer. The sell-off in PLD was a huge over-reaction. Then, PLD offered to buy a key competitor on May 10 when the market was selling off (bad timing). Then, the macro view is pessimistic--recession fears. In contrast, he argues that Amazon can't strong-arm PLD on rent. PLD doesn't lack demand. They had a 98% occupancy rate in March. Also, the Duke Realty merger (key competitor) will be accretive. PLD has long-term leases with clients, so a wider economic slowdown won't hurt them. It's one of the best secular growth stories of the past 15 years.
investment companies / funds