These are my next favorite 20 ideas. The date given is their reporting date. It will be a challenge to stay organized. This list consolidates my small, mid, and large, cap “lurking lists”.
All we can do now is wait for earnings season to end. Many years ago my graduate school buddies gave me a plaque with two vultures perched on a fence with the line:
“the hell with patience, I am going to go kill something”
I am encouraged to see Polaris - PII - $72 miss. I have been waiting for this one for a long time. Except for a brief “pandemic spike”, this is a 10-year low on a very well run company. PII is much more than ATV’s for kids. They have a substantial market share in agriculture and industrial. The balance sheet is ok, and my favorite Canadian value guys Beutel Goodman own 5%. The miss is not a good sign for Brunswick - BC, who reports tomorrow. Winnebago - WGO missed and Thor - THO reports tomorrow. Whirlpool - WHR reports later today.
My favorite next 20 in order:
RXO - RXO - $29 - 11/7 - my favorite, but a tough call in the short term, let’s see the quarter
MGP Ingredients - MGPI - $58 - 10/31, warned in mid October, maybe the shor sellers were right, cheap on earnings but still 2x EV/Sales, needs more work
Vail Resorts - MTN - $170 - July year end, 12/6 - will there be enough snow?
Etsy - ETSY - $49 - 10/30 - Tough economic environment, but the strategy seems sound
LKQ Corp. - LKQ - $38 - 10/24 - I wish the investor day had been a little more exciting
Oxford Industries - OXM - $76 -12/6, Jan. year end - this has been a good one to wait on, now selling at 1x EV/Sales for a great brand, Tommy Bahama
First Watch Restaurant Group - FWRG - $17 - 11/6 - great concept, but I worry about their franchisee choices
Coty - COTY - $7 - warned 10/21, reports 11/6 - If LVMH is having issues in beauty products, COTY can’t be expected to perform well
Borg Warner - BWA - $34 - 10/31 - a Harris stock because of the EV exposure
Polaris - PII - $72 - missed on 10/22, now under 1x EV/Sales
Magnite - MGNI - $12 - 11/7 - very complex story
Rogers Corp. - ROG - $101 - 10/24 - Dow offered $200+, new management is struggling
Hasbro - HAS - $71 -10/24 - great video game business, need a bad quarter, stock has run too much
AES Corp - AES - $17 - 11/1 - maybe other utilities are safer, but this has more upside
Antero Midstream - AM - $15 - 10/30 - 6% yield, still the perfect “cash substitute”
WPP - WPP - $50 - 10/25 - international stocks deserve a look, this is my favorite, 5% yield and 9x earnings
Dow - DOW - $52 - 10/24 - still too much housing exposure, now 1.2x EV/Sales, 5% yield
Kimberly Clark - KMB - $138 - warned 10/22, slow moving change
Bristol-Myers - BMY - $53 - 10/31, could be a “Chevron deference” stock
ConAgra - CAG - $20 - 1/3, May year end - not horrible, but not exciting, pure defense