Oh I promised myself three years ago I won't post anything on names I own institutionally...oh but you make it so hard "with a K". Well, maybe if I leave the name out. I'm thinking of a company with no debt on its balance sheet, trading at about 11 times earnings after taking excess cash out of the market cap. It has two of the hottest and most profitable, highest margin concepts in its industry. The first is nearing saturation, the second, which begins with an H, is just hitting critical mass and has years of growth in front of it. Everybody is focused on one number, comp sales, but if we look at some other numbers this is one of the most gorgeous set of financial statements I've seen, whatever the valuation. I don't know of many companies that are able to grow at 20% while producing free cash flow, i.e. completely self-funding growth and then some - and which have a very clear growth path rolling a concept out across the country. So naah, no interest here...why don't you see if there's a Buy Growth Companies for Half What They're Worth thread on SI. Maybe they might have an opinion...
actually in the last six months or so perhaps the worst retailer I know of (EBSC) has been by far the better stock. Sometimes 2% return on capital beats 40% return on capital if you buy it right. More kudos to the thread for that pick. |
