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What are you buying today?


LowIQinvestor

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Seems like PG&E's plan to cut power to people who can afford standby generators on windy days ought to give GNRC more than the usual post-hurricane boost in sales.  I've been a long term holder of a very small position.  It definitely trades on weather news a lot of the time.

 

https://www.bloomberg.com/news/articles/2019-06-08/pg-e-cutting-power-in-california-s-wine-country-to-prevent-fires?srnd=premium

 

Bought a little bit of GNRC. I might get this one cheaper , but I like the sector and the brand equity. I also believe this sector has secular growth, even though near term results can vary, based on weather patterns.

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Seems like PG&E's plan to cut power to people who can afford standby generators on windy days ought to give GNRC more than the usual post-hurricane boost in sales.  I've been a long term holder of a very small position.  It definitely trades on weather news a lot of the time.

 

https://www.bloomberg.com/news/articles/2019-06-08/pg-e-cutting-power-in-california-s-wine-country-to-prevent-fires?srnd=premium

 

Bought a little bit of GNRC. I might get this one cheaper , but I like the sector and the brand equity. I also believe this sector has secular growth, even though near term results can vary, based on weather patterns.

 

I didn’t think of this angle and sold my few shares recently. Worked out OK. I keep this on my watch list , as I think it’s a secular growth play.

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KTB

 

"Cowboy hat from Gucci, Wrangler on my booty."  I need to read that S-1, but I am lazy AF.

 

Posted a deep dive on this yesterday:

 

https://lowtideinvestments.com/2019/06/18/kontoor-brands/

 

Enjoyed reading that.  Thanks for sharing.  I suppose my similar, sort of opportunity cost for a KTB position might be CPRI or TPR.

 

Thank you for sharing your research. I have been working on KTB as well.

 

I was far from impressed with the Q1 results KTB released today. Not a total surprise that Q1 was weak though, since VF's Q1 earnings still included Kontoor.

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KTB

 

"Cowboy hat from Gucci, Wrangler on my booty."  I need to read that S-1, but I am lazy AF.

 

Yes, KTB’s results were weak, a continuation of trends that  have been persistent since at lest 2014.

 

 

Posted a deep dive on this yesterday:

 

https://lowtideinvestments.com/2019/06/18/kontoor-brands/

 

Enjoyed reading that.  Thanks for sharing.  I suppose my similar, sort of opportunity cost for a KTB position might be CPRI or TPR.

 

Thank you for sharing your research. I have been working on KTB as well.

 

I was far from impressed with the Q1 results KTB released today. Not a total surprise that Q1 was weak though, since VF's Q1 earnings still included Kontoor.

 

I have looked quite a bit into this stock too, as it indeed looks cheap. I have decided against investing for a simple qualitative reason: If a very smart management team like VFC can’t fix KTB, what makes us think that standalone company can do better? This was not a business that was badly managed, imo. It is a business that even a very strong management team decided to get rid off. I don’t think I am smart enough to go against their judgement and it is quite likely that this business will continue to struggle. I would be more inclined to invest in KTB, if I consider VFC’s management subpar, but that far from being the case, imo.

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Started small position in DF @ 1.01 ... looks like someone else had the same idea ;D

Dean Foods is an interesting company and would appreciate that you eventually share the outcome and underlying rationale in the DF thread.

FWIW, earlier this month, the CEO of Saputo commented that he looked at the company:

"There is more capacity than people drinking milk in the U.S., which would make an acquisition of Dean Foods a volume play rather than a value play". Right now, I'm drinking a glass of milk but I agree with Mr. Saputo.

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KTB

 

"Cowboy hat from Gucci, Wrangler on my booty."  I need to read that S-1, but I am lazy AF.

 

Posted a deep dive on this yesterday:

 

https://lowtideinvestments.com/2019/06/18/kontoor-brands/

 

Enjoyed reading that.  Thanks for sharing.  I suppose my similar, sort of opportunity cost for a KTB position might be CPRI or TPR.

 

Thank you for sharing your research. I have been working on KTB as well.

 

I was far from impressed with the Q1 results KTB released today. Not a total surprise that Q1 was weak though, since VF's Q1 earnings still included Kontoor.

 

Good example of negative operating leverage, wasn't it?  Someone should probably start a thread.

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ABBV, IMBBY and IAU

 

Thanks

Lance

 

Lance, I always find your positions quite interesting. Do you use IAU as a hedge?

 

Hi Castanza - yes, I do.  I’m concerned that rates are headed lower, particularly between now and the election.  I already hold a large position in TLT and don’t want to add to it (will opportunistically take this off if rates continue lower).  Also I’m not comfortable shorting the indexes even though they seem overvalued here.  Thus, IAU it is.

 

Thanks

Lance

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ABBV, IMBBY and IAU

 

Thanks

Lance

 

Lance, I always find your positions quite interesting. Do you use IAU as a hedge?

 

Hi Castanza - yes, I do.  I’m concerned that rates are headed lower, particularly between now and the election.  I already hold a large position in TLT and don’t want to add to it (will opportunistically take this off if rates continue lower).  Also I’m not comfortable shorting the indexes even though they seem overvalued here.  Thus, IAU it is.

 

Thanks

Lance

Thanks Lance, appreciate the response.

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