Despondent
The Webster definition of despondent is perfect:
“in low spirits from loss of hope or courage”
Today I started a review of the holdings of Barrow Hanley on the Guru Focus website (you can use Whale.com if you do not have access to Guru). Barrow Hanley is my favorite value investor because they generally buy the slightly offbeat type of stocks I prefer.
Boom! My favorite value guys bought a new 1 million share ($10 million cost, now worth $6 million) position in one of my favorite small cap idea, Krispy Kreme - DNUT - $5.50. Usually this would bring me great excitement and joy. Peaking ahead, I also noted that value investor Ron Baron also bought 25% more DNUT (now owns 7.7%) I should be itching to buy the stock at its new low.
Instead I am dreading making a decision on DNUT’s plan to to sell their doughnuts in 12,000 McDonald’s locations by 2026. DNUT guided lower for 2025, but the McDonald’s deal is still going forward. I am just so scared of smaller cap ideas, that I can hardly look in a mirror. What can I do to recover from my “loss of courage'“? Let’s try going to the racetrack.
There were plenty of other important things in the new BH portfolio:
Their new largest holding is Carnival Cruise - CCL - $20. I prefer Norwegian NCLH - $20. Both of these stocks need more work.
BH bought a new chunk of Avantor - AVTR - $16, which makes lab equipment just like Revvity, the stock I am considering selling. I need to look closer at Avantor.
BH bought 3 million more shares of Darling - DAR - $32, this is a very important confidence boost in that stock for me
When I look at the stocks that BH owns more than 5% of I know I need to do more work on United Parks - PRKS - $47, Axalta - AXTA - $33, Hain Celestial - HAIN - $4, Columbus McKinnon - CMCO - $17, and SunOpta -STKL - $5.
I am mad I missed the utility Entergy - ETR - $85, at $50, which is now BH’s second largest holding.
BH bought a big chunk of Keurig Dr. Pepper - KDP - $34 (now BH’s sixth largest holding), I am still hesitating on this stock because I do not understand the coffee business.
I hate Comcast - CMCSA - $37, but all the value guys own it, it is BH’s seventh largest position
BH bought more Las Vegas Sands - LVS - $40, and Wynn Resorts - WYNN - $84
BH bought 15% more Halliburton
BH owns 2.3% of Atlas Energy - AESI - $18
Merck - MRK - $88, is their only big drug holding