The Art of Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Art of Investing

PICK 52.34

+1.6%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: kidl who wrote (3390)	1/21/2022 2:00:10 PM
From: Sun Tzu	Read Replies (1) of 10713

FYI, XPEL and all the consumer discretionary goods have a lot of gap to fill to return to their long term valuations and trendlines. It can drop to anywhere between 30 - 50. I am not saying that it will. But I don't like the risk/rewards. My investment (not trading) thesis for this year is that as the economy goes back to normal, so will the valuations. The economy itself will do fine. But without the Fed pumping up the capital markets, a reversion to the mean is in order. So stuff that has not gone up much, like travel and leisure will do well. But things that went up 4x or more during the pandemic will come back to their trendline. In the case of XPEL, it has done better than 7x. If they have changed their business during this time - say bought a bunch of companies or invented something new or broke into new markets, then fine. But anything that is still the same old company, then it will eventually go back to the same old valuations.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next