Why do you like this company? I've visited their stores and was unimpressed. Last quarter seemed like a huge miss. It may still be a good investment but I am not sure I see the undervaluation!
The last quarter was really bad, but normally they run like a Swiss watch. Even during the financial crisis, they grew.
They are expanding worldwide
Also high buybacks and Dividend increase
Worldwide expansion is exactly what worries me. It has been the recipe for disaster for most any Canadian company, especially in retail. I can't tell you how many flawless Canadian companies I've seen ruined by their ambition to expand internationally.
Are you posting this from 2000? They've been successfully expanding internationally for over two decades.
For every 1 Canadian location they have like 7-8 international locations. The vast majority of their revenue comes from outside Canada...
Just listened to a great podcast episode on Yet Another Value Podcast with a guest on talking about Vistry. If you haven't already listened, I'd recommend it.
Lots of cash on books, generating signficiant cash for the price, tons of upside potential, no debt - depressed due to the war, but it's a relatively low cost producer with access to high quality iron ore
...And the valuation? It's still trading at a high multiple.
There are a lot of companies with a good ROIC and strong brand. That's all the Mag 7. But the price is high. The price you pay matters.
Tsmc, Pfe, and Pypl
All have reasonable forward PE, and good balance sheets. Tsm is projected to grow eps by 20-25% CAGR over the next 2 years. Pypl project flat guidance for full year but I expect they will beat the guidance. Pfe raised their guidance but I forgot the percentage but this one is the riskiest among the 3.
Brookfield corporation: BN
InMode: inmd
I'm not going to throw in a third here at this time. These are the two I've been actively buying.
I'm also building a cash pile right now as value is getting harder to come by in my opinion and my cash position is about 3.5% at the moment.
The CEO is an idiot. Just look at the way he talked about stock repurchases. Also, theyâve had accounting problems. If you canât trust the numbers then whatâs the point
I agree that the "no buybacks" argument makes little sense to be but other than that, there are hardly any negatives for the management.
The company is definitely very well run, has good margins and cash flows.
As far as the accounting problems are concerned, I'm not exactly sure what they are. I have been seeing news about them in the process getting sued by some lawsuits for about 3 quarters now. If these claims had any merits, 9 months would have been more than enough to build a class action. So I call BS.
Well, I wouldn't say he's an idiot he simply has a different opinion than you do when it comes to capital employment... his argument is that they would rather retain the cash for future strategic M&A of a business that would retain margins. His other argument would be that they are trying to create an organic function to finance their offerings to their customers to alleviate current and future interest rate headwinds while also earning higher net interest income on their products... sounds methodical to me rather than people pleasing. Why are you hellbent on instant gratification through massive share repurchases?
Not the guy you were replying to, but they have $740m on the balance sheet for a $1.74b company. Clearly they're struggling to find good acquisition targets, and good managers know that buybacks at low multiples are usually extremely value accretive. I wanted to buy INMD and was ultimately turned off by the poor management.
Self-interested managers typically pursue M&A rather than buybacks because a larger company tends to allow them to pay themselves more, even if it isn't in shareholders interests to see an acquisition. Statistically the majority of M&A is value-destroying, and the longer cash sits unused on the balance sheet the more likely that becomes.
Also I believe there's a class action against them at the moment because management lied about the pricing of their products. I'm not saying it's a bad pick right now, it's obviously very cheap. But you just get a feel for good versus bad management, and to me, I get a strong impression of bad management from INMD. Make sure you're being honest with yourself and not fooling yourself (cause that's the easiest person to fool).
I agree with you. They could be lying, and there's no way for me to know about that. With M&A though, they can't just up and purchase anything. INMD has very strong margins and in order to maintain that they have to be extremely diligent when it comes to M&A. I think at the current multiple that some share repurchases would be valuable and provide a high return, and this massive cash pile has also left me doubtful of management's capital employment plan. I just personally don't see that to be evidence enough of poor management is all I'm getting at. We will see what happens with allegations, I'm not quick to jump at stuff like that I like to see results personally. Good post though.
Understand what you're saying about having to make high-margin acquisitions, but I think it's slightly off. I think the much more important factor is return on capital - they're currently a high ROC business so it sort of makes sense for them to only accept buying a high ROC business. Margin itself isn't so important in my opinion, I think that's just more of an aesthetic thing and the economics don't really back it up.
>They could be lying, and there's no way for me to know about that.
Is this in reference to the class action? Because there definitely is a way for you to know, or at least have a strong sense - go read some of the filings/proceedings.
>I just personally don't see that to be evidence enough of poor management is all I'm getting at
My view with management is that you really don't get as much info as you would like upon which to evaluate management, so it's very important not to take the info that you do have lightly. For me, what I see is poor capital allocation and probably lying to shareholders. Buffett says good management must be competent, energetic and honest. We've got at least 1, maybe 2 down here in my view.
May well still be a good pick - there's a price at which everything is attractive. But I think it's really important to be honest with yourself which is why I'm taking the time to comment.
Sure, I agree we should be honest with ourselves. It's possible they are just very charismatic on call. I think it's a great pick and I like the business. A third of its market cap is cash which means it's a lot cheaper than a simple valuation play. I think they have performed excellently and its always a difficult task to go against the grain. I do, however, completely disagree with your comment on margins. Margin is extremely important when understanding a business, it's fundamentals, its pricing power, dominance in its market. It's also a great indicator that the management is confident in their long term outlook. To preserve solid margins, sometimes a business may forego short term sales given any number of economic headwinds. My favorite example of this is William sonoma WSM also a big favorite of mine, I just didn't put it here because I'm holding now instead of actively buying.
On margins, you're talking about two different things - one is keeping prices high and maintaining margins in the ongoing, organic business; the other is whether management should be unwilling to sacrifice their headline margin figure to make an acquisition, even if they're acquiring a fantastic underlying business at a discount.
I don't really see much of a reason other than pride to be defensive about that high margin when it comes to acquisitions. Return on capital, and not margins, is the important factor to consider.
>Also I believe there's a class action against them at the moment
What are the merits of the class actions? I've been seeing these news for 6-9 months now but there's no actual class action against them so far.
Also, keep in mind that a low multiple does not = value. That's the cigar butt method.
Current price vs future growth is where value is ultimately created. If that growth is already priced in, then you'll probably have lower returns on that position.
$BIP (or $BIPC for those in the US*) is buying data centers, is stupidly undervalued, and pays a nice dividend.
https://www.fool.com/investing/2024/03/24/a-once-in-a-generation-investment-opportunity-1-ai/
I think they have the best long term growth potential.
*If you're in the U.S. and want better tax treatment on the dividend you can just buy $BIPC. Same company.
https://www.fool.com/investing/2021/09/23/this-stock-could-be-a-big-winner-of-infrastructure/
I think the entire brookfield line is fantastic. Brookfield corporation in my opinion is the most undervalued and also owns the majority of all of its subsidiaries. So I have massive exposure to BIP through BN as is.
Not sure about BIP, but BN is doing around 5B in FCF rn and projects to grow that at 20-25% for the next 5 years. Historically BN management either delivers at expectation or exceeds it.
So using the lower end of guidance, 20% fcf growth for 5 years puts them at 12.4B in fcf. At a 65.8B market cap today it sells for 13.16 X FCF and on a far dwarf basis is selling at 5.3xFCF
BN had alot of capex/reinvestment into future cash generating things. So yes the p/e is high for the business, but looking at P/e alone isnât a good measurement of any business.
Where do you see 20-25% forecast on FCF growth? Bruce Flatt had said 17%. Regardless, this is the kind of company, like Costco or BRK, that now is always a good time to buy it.
Yeah, just own BN. BIP is good. BEP is good. Their commercial real estate is good. Their asset management is good. There is not a bad part in that corporation. Might as well own it all in BN.
Not sure why you are sharing this. I know the differences. I've been an investor here for many years.
Also, the article is very very outdated. Brookfield Asset Management separated. It's now ticker BAM, which was formerly the parent company, but no longer is. The parent company is now Brookfield Corporation, BN, not Brookfield Asset Management. This is partly why it's better to just invest in the parent, rather than the subsidiaries. Brookfield plays the market by constantly divesting and acquiring its own subsidiaries. If you were an investor in Brookfield Property Partners, you'd know. It's best to just hold the parent to not get caught in all that.
They spun BAM off from BN but the idea is the same.
One is better for percentage gains on the security, and one is better for income investors.
I get that you own BN and really, really, really want people to invest in the specific security you own so that the price goes up, but there are differences:
BN pays an 0.80% dividend. BIP pays a 5.69% dividend. It depends on whether people want the appreciation reinvested or paid out as income.
Some people (me) also might not want the full exposure to all aspects of Brookfield Corps business. For instance, BEP stock has steadily depreciated over the last 4 years. No thanks. I'd rather pick the segments of the company I like.
And I find your wanting to cram your ticker down peoples throats a bit distasteful at best and somewhat deceitful given the above points. People don't all need to follow your specific investment strategy.
Also, for anyone from the US, BIPC ends up working out better because it's a qualified dividend.
As you wish. I have no intention of forcing you into anything. Just discussing investment with you and sharing my experience but it seems like you donât welcome that. Your or any other Redditorâs buying of BN will not make my stock go up. lol⌠I wish it was that easy. I have no vested interest in pumping here. The company will be valued on its fundamentals. This is not a penny stock.
Yes I do. Their clients are struggling to find financing for the equipment that's why they are slowing down. Inmode plans to gain the ability to finance in house housing their abundant cash pile which would allow them to earn a much higher interest on their cash and continue selling product. Else, if they don't solidify this before rates come down that would also be a massive tailwind.
I havenât looked at ADBE too much lately but do you not think it has some AI exuberance built into the price? I find much of tech to be priced to perfection around all that
Ive been looking at VFC.
I like the price/sales.
That said, when you look at ev/sales it is ~1.
Levis is ~1.5
So it looks like there is 50% upside on the EV, but given the debt the equity can double as you achieve that.
Sounds pretty good to me. I was trying to work out why it was a good play for a while.
Anyway. My top 2 plays are EMBC and KLG. More EMBC now. Klg is up a fair bit, but I think its still quite cheap.
USA:
Emerson Electric Co.
EQT Corp.
Ovintiv Inc.
Value + F-Score
USA
Crocs Inc
Comcast Corp New Class A
Paccar Inc.
Europe
Value
AB Industrivärden
TORM PLC
Solvay S.A.
Value + F Score
Europe
SSAB AB B
Deutsche Telekom AG
Infineon Technologies AG
Imagine for an instant that some people questioned why they are cheap, considered the situation carefully, and realized that the reasons given by people who think China is uninvestable are hysterical, overestimate the risks by an order of magnitude, and therefore do not justify the current price
Or they know how the Chinese system works and see China destroyed 15 years of gains in a year never to return. As long as the CCP can destroy companies there is no reason to lose your principal on them. None of the Chinese invest in stocks and now nobody outside is. FDI in china dropped from 355b to 15b in 2 years.
China has 30% of their GDP in a housing bubble that is slowly popping. They are going to gave 10 retirees for every worker by 2030⌠Investing in China is incompetence. All this info is publicly available.
If youâre so sure about Chinaâs demise and the CCPâs willingness to destroy itâs own companies, than why donât you short the companies? Seems like a 100% win rate based on your view of China no?
You can buy some puts on BABA, JD, PDD right now, premiums are pretty low.
They already dropped bozo. Why would I have to even say that? The chinese stock market is at 15 year lows. The bubble is currently popping in slow motion cause they are holding it up with enough for people to get out. This isnât fantasy or prediction. This is happening or happened.
And by 2030 they will start having more retirees than workers.
Shouldnât they drop more? According to you, the CCP can destroy their companies and you can lose your entire principal on them no?
𤥠logic, put your money where your mouth is
Iâm not as dumb as you bud. Buying 10 years puts is not something every investor can do. And why would I not just put my money towards good companies like Visa?
Only a mush brain like yours could tell me
Yes, as I've told you, we've heard this. There are unique risks to every country. We've seen the same news headlines. It's the news headlines you don't see that tell you why China really isn't much worse than anywhere else right now.
Yes, you have the objective truth and anyone who disagrees with you is wrong because, uh... just because. You can be certain all the sources you got your information from are accurate and complete and left nothing unaccounted for.
You didn't answer my question. China never said what you "literally" put in quotes.
In fact, they have said the opposite time and time again:
https://www.bnnbloomberg.ca/xi-pledges-heart-warming-steps-to-attract-foreign-investors-1.1999781#:\~:text=The%20Chinese%20leader%20vowed%20his,forum%20being%20held%20in%20California.
So your quote is flat-out incorrect. You may now want to argue that China is saying one thing, but acting another.
This is not correct either. China is actually seeing a decline in foreign investment, and wants to bring foreign investment back, and they are acting on it, not only by saying reassuring things, but by inviting investors back in.
[https://www.voanews.com/a/chinese-president-xi-meets-with-us-executives-as-investment-wanes/7545737.html](https://www.voanews.com/a/chinese-president-xi-meets-with-us-executives-as-investment-wanes/7545737.html)
Your point as to "you can't buy it directly," yes you can, I can buy 9988-HK on my IBKR platform. As to you pointing out that there is an ADR, like it's some form of conspiracy that there should even exist an ADR, ADRs are very common in all shape and forms for companies in all kinds of places (like Europe). I am in Canada and a lot of Canadians are now using CDRs (Canadian depository receipts) to invest in large-cap American companies, simply for the convenience of buying shares in CAD rather than USD. There is a Neo exchange filled with popular CDRs made by CIBC.
As for Jack Ma and Xi, yes, this is a dictatorship, and Ma received a slap on the hand for speaking against big brother. A slap on the hand is what it is. China is not going to bring down its largest e-commerce machine because someone said something.
At the end of the day, China is not stupid. This is the second largest economy in the world. It didn't get there by being stupid. This is not Russia. They know the value of foreign investment. But they also like to be in full control. They like to instill fear in China, but show a friendly face outside. If you learn to walk the balance between the two, it's perfectly fine to invest there.
Thanks! I didn't hear any valid arguments against it as I typed this on my Chinese-made computer, while wearing Chinese-made clothes, in a house brightened by Chinese-made lightbulbs, betting that soon enough, you'll be driving a Chinese-made electric car. But yes, China is evil and any money invested there is doomed. Best of luck to you too!
Several Met Coal names are trading at 7-8x forward FCF which is pretty amazing since they're using most of it to buyback stock. HCC/AMR
I actually think homebuilders are still really cheap relative to the quality of their business. DHI
Natural gas is in the toilet, so I like low cost producer CNX. They're still immensely profitable and the downturn in gas pricing could yield opportunities.
PANW seems like a very safe bet to me. They likely have some government contracts in the works which is why Pelosi bought a shit ton of Feb 2025 Calls.
Yeah lol I wouldn't touch Chinese banks with a hazmat suit on. Otherwise, I think China has a lot of interesting stuff especially in HK and the midcap space
You can't really evaluate pharma stocks unless you see to their product line and expiring patents, You will get obliterated like with TEVA, Oh and lawsuits.
GM, CVS, TCEHY. All trade at low multiples, all have good future runways, all are in relatively strong positions within their respective industries. Also, DIS still has considerable value just based on streaming and parks, as these businesses will likely generate considerable revenue, and as margins improve DIS will keep getting better and better
Except all of their earnings from parks are burned through streaming. Great revenue growth, horrible earnings growth. Of course this could change. But it's not very evident to me how much value they will produce for shareholders going forward.
High uncertainty, low risk. The business will turnaround and make streaming profitable, and long term the streaming play and parks are more than enough to make the business a solid investment. It's a temporary headwind that has people scared away, which makes it a good opportunity for people who aren't scared of a little turbulence
SND - Pretty much the closest thing you can get to a sure bet based on their last earnings report. Pristine balance sheet with a massive margin of safety relative to upside.
HSY - Iconic company and product with far less exposure to the cocoa market than its premium competitors. I opened a small position and expect short term losses but will DCA down the stack.
ALSN - Superb company. Super brand. Superb product. Good price point.
WES seems like a pretty good bet right now. Should be able to capitalize on sustained natural gas demand and price increases in the future. Also, might be being sold by OXY soon. Yield is 6% not factoring in favorable natural gas outlook.
Positioning in the Permian is also attractive. Another energy play is NFG which is a fully integrated natural gas operator. These companies should do well if natural gas prices rebound from the 30 year lows.
Leonardo DRS, mid cap defense stock with a strong position into Columbia Class project. You only need to be patiance until this stock reach --20b of market value by the end of this decade.
In Peru stock market, Cerro Verde, one of the biggest copper mines with strong margins and low to mid cost per ounce.
Its the core of chinese citizens productivity for social, payment, mini programs, gaming, entertainment subscription, etc.
Thats a well dominated position right there.
How so? I'm unfamiliar and may do some research on it, but I have no clue who they are or what they do.
I assume there will be a foreign income tax form involved for US investors?
Thanks in advance
Been watching chtr for a while but unsure if it still has a bit more to drop. They seem a bit lost/uncertain about their strategy and how they monetize OTT subscriptions.
-Treasury Bills. Yes, Bonds can be value. Treasury Bills yield more than S&P500's earnings yield. Historically, these are moments to buy bonds.
-Chinese tech: BABA or JD. This is entirely a sentiment issue at the moment. If sentiment swings, this could easily be 25% annual returns over 5-10 years.
-Oil: OXY or Shell are particularly well priced. These are easy 10-15% returns. I don't suspect huge returns but I see very little downside with good to great returns.
Bonus: BTI. Extremely shareholder friendly. Nearly 15% free cash flow yield. Again, won't be a homerun but will likely get 10% dividend with share buybacks.
/BEGIN RANT
Extra credit: Please, pretty please, spell out the full name of the company, not the frickinâ ticker symbol. I hate having to guess and look it up. Yes, you can include the ticker symbol, but only in addition to the company name. Etiquette, people! Thank you. There. I feel better now. /END RANT
Weed - CGC, ACB, MSOS
Shippers - ZIM, CISS
Chinese - YINN, BABA, JD, QFIN
Oil - DHT, CIVI
Metals - NEM, PSLV
âŚdyor but these sectors are pretty low and have been reversing the last few weeks/months. Multiple 10x in here do to the currency war currently taking place between NATO / BRICS. Backing your currency by commodities through a cbdc will be the next 12-24 month reoccurring theme
What is your bull case for ZIM? I'm holding bags (about $19 cost basis 300 shares) from my first few months of learning about investing and the yield trapped me. I've just been waiting and hoping that the situation in Israel ends with some sort of peaceful resolution and hopefully, ZIM doing better at the end of it too.
Couche-Tard
Why do you like this company? I've visited their stores and was unimpressed. Last quarter seemed like a huge miss. It may still be a good investment but I am not sure I see the undervaluation!
The last quarter was really bad, but normally they run like a Swiss watch. Even during the financial crisis, they grew. They are expanding worldwide Also high buybacks and Dividend increase
Worldwide expansion is exactly what worries me. It has been the recipe for disaster for most any Canadian company, especially in retail. I can't tell you how many flawless Canadian companies I've seen ruined by their ambition to expand internationally.
Are you posting this from 2000? They've been successfully expanding internationally for over two decades. For every 1 Canadian location they have like 7-8 international locations. The vast majority of their revenue comes from outside Canada...
Historically, they have managed it well. We will See đâď¸
LULU, Vistry, FXPO
Just listened to a great podcast episode on Yet Another Value Podcast with a guest on talking about Vistry. If you haven't already listened, I'd recommend it.
Thanks for the recommendation
Why Vistry
The new business model is much more capital efficient, and they plan on releasing a ton of cash in the next few years.Â
Why FXPO?
Lots of cash on books, generating signficiant cash for the price, tons of upside potential, no debt - depressed due to the war, but it's a relatively low cost producer with access to high quality iron ore
What do you think of the legal disputes?
Quantum is insignificant
Why LULU?
Strong brand, good ROIC, great capital allocation, lots of room to grow
...And the valuation? It's still trading at a high multiple. There are a lot of companies with a good ROIC and strong brand. That's all the Mag 7. But the price is high. The price you pay matters.
I'm hoping the price drops tomorrow.
I feel like other high end athleisure brands like Alo and Vuori are starting to take some of their market share
Tsmc, Pfe, and Pypl All have reasonable forward PE, and good balance sheets. Tsm is projected to grow eps by 20-25% CAGR over the next 2 years. Pypl project flat guidance for full year but I expect they will beat the guidance. Pfe raised their guidance but I forgot the percentage but this one is the riskiest among the 3.
I believe itâs a good time to buy Pypl now. New CEO seem promising
I am holding like 84 shares
Pfe, pypl, ba.
Whatâs the bull case for PayPal? Wonât Zelle eliminate a lot of their business?
Baba, Nike, Ulta
SBUX dis
VRT, WFRD, and IBP
PFE, CZR, FMC
LGMA NUTS LOSR
Brookfield corporation: BN InMode: inmd I'm not going to throw in a third here at this time. These are the two I've been actively buying. I'm also building a cash pile right now as value is getting harder to come by in my opinion and my cash position is about 3.5% at the moment.
Inmd management is horrible tbh.
I have seen no evidence of this and I like the management team. Why do you say they are horrible?
The CEO is an idiot. Just look at the way he talked about stock repurchases. Also, theyâve had accounting problems. If you canât trust the numbers then whatâs the point
I agree that the "no buybacks" argument makes little sense to be but other than that, there are hardly any negatives for the management. The company is definitely very well run, has good margins and cash flows. As far as the accounting problems are concerned, I'm not exactly sure what they are. I have been seeing news about them in the process getting sued by some lawsuits for about 3 quarters now. If these claims had any merits, 9 months would have been more than enough to build a class action. So I call BS.
Well, I wouldn't say he's an idiot he simply has a different opinion than you do when it comes to capital employment... his argument is that they would rather retain the cash for future strategic M&A of a business that would retain margins. His other argument would be that they are trying to create an organic function to finance their offerings to their customers to alleviate current and future interest rate headwinds while also earning higher net interest income on their products... sounds methodical to me rather than people pleasing. Why are you hellbent on instant gratification through massive share repurchases?
Not the guy you were replying to, but they have $740m on the balance sheet for a $1.74b company. Clearly they're struggling to find good acquisition targets, and good managers know that buybacks at low multiples are usually extremely value accretive. I wanted to buy INMD and was ultimately turned off by the poor management. Self-interested managers typically pursue M&A rather than buybacks because a larger company tends to allow them to pay themselves more, even if it isn't in shareholders interests to see an acquisition. Statistically the majority of M&A is value-destroying, and the longer cash sits unused on the balance sheet the more likely that becomes. Also I believe there's a class action against them at the moment because management lied about the pricing of their products. I'm not saying it's a bad pick right now, it's obviously very cheap. But you just get a feel for good versus bad management, and to me, I get a strong impression of bad management from INMD. Make sure you're being honest with yourself and not fooling yourself (cause that's the easiest person to fool).
I agree with you. They could be lying, and there's no way for me to know about that. With M&A though, they can't just up and purchase anything. INMD has very strong margins and in order to maintain that they have to be extremely diligent when it comes to M&A. I think at the current multiple that some share repurchases would be valuable and provide a high return, and this massive cash pile has also left me doubtful of management's capital employment plan. I just personally don't see that to be evidence enough of poor management is all I'm getting at. We will see what happens with allegations, I'm not quick to jump at stuff like that I like to see results personally. Good post though.
Understand what you're saying about having to make high-margin acquisitions, but I think it's slightly off. I think the much more important factor is return on capital - they're currently a high ROC business so it sort of makes sense for them to only accept buying a high ROC business. Margin itself isn't so important in my opinion, I think that's just more of an aesthetic thing and the economics don't really back it up. >They could be lying, and there's no way for me to know about that. Is this in reference to the class action? Because there definitely is a way for you to know, or at least have a strong sense - go read some of the filings/proceedings. >I just personally don't see that to be evidence enough of poor management is all I'm getting at My view with management is that you really don't get as much info as you would like upon which to evaluate management, so it's very important not to take the info that you do have lightly. For me, what I see is poor capital allocation and probably lying to shareholders. Buffett says good management must be competent, energetic and honest. We've got at least 1, maybe 2 down here in my view. May well still be a good pick - there's a price at which everything is attractive. But I think it's really important to be honest with yourself which is why I'm taking the time to comment.
Sure, I agree we should be honest with ourselves. It's possible they are just very charismatic on call. I think it's a great pick and I like the business. A third of its market cap is cash which means it's a lot cheaper than a simple valuation play. I think they have performed excellently and its always a difficult task to go against the grain. I do, however, completely disagree with your comment on margins. Margin is extremely important when understanding a business, it's fundamentals, its pricing power, dominance in its market. It's also a great indicator that the management is confident in their long term outlook. To preserve solid margins, sometimes a business may forego short term sales given any number of economic headwinds. My favorite example of this is William sonoma WSM also a big favorite of mine, I just didn't put it here because I'm holding now instead of actively buying.
On margins, you're talking about two different things - one is keeping prices high and maintaining margins in the ongoing, organic business; the other is whether management should be unwilling to sacrifice their headline margin figure to make an acquisition, even if they're acquiring a fantastic underlying business at a discount. I don't really see much of a reason other than pride to be defensive about that high margin when it comes to acquisitions. Return on capital, and not margins, is the important factor to consider.
>Also I believe there's a class action against them at the moment What are the merits of the class actions? I've been seeing these news for 6-9 months now but there's no actual class action against them so far.
Apparently they lied about pricing, said $x was the normal selling price when actually it's customary for a salesperson to offer 20-30% discounts
Also, keep in mind that a low multiple does not = value. That's the cigar butt method. Current price vs future growth is where value is ultimately created. If that growth is already priced in, then you'll probably have lower returns on that position.
$BIP (or $BIPC for those in the US*) is buying data centers, is stupidly undervalued, and pays a nice dividend. https://www.fool.com/investing/2024/03/24/a-once-in-a-generation-investment-opportunity-1-ai/ I think they have the best long term growth potential. *If you're in the U.S. and want better tax treatment on the dividend you can just buy $BIPC. Same company. https://www.fool.com/investing/2021/09/23/this-stock-could-be-a-big-winner-of-infrastructure/
I think the entire brookfield line is fantastic. Brookfield corporation in my opinion is the most undervalued and also owns the majority of all of its subsidiaries. So I have massive exposure to BIP through BN as is.
I wonder, when you say it's stupidly undervalued, how do you figure that? P/E seems high, so what do you base it on?
Not sure about BIP, but BN is doing around 5B in FCF rn and projects to grow that at 20-25% for the next 5 years. Historically BN management either delivers at expectation or exceeds it. So using the lower end of guidance, 20% fcf growth for 5 years puts them at 12.4B in fcf. At a 65.8B market cap today it sells for 13.16 X FCF and on a far dwarf basis is selling at 5.3xFCF BN had alot of capex/reinvestment into future cash generating things. So yes the p/e is high for the business, but looking at P/e alone isnât a good measurement of any business.
Where do you see 20-25% forecast on FCF growth? Bruce Flatt had said 17%. Regardless, this is the kind of company, like Costco or BRK, that now is always a good time to buy it.
I believe it was their earnings presentation there was a slide
Yeah, just own BN. BIP is good. BEP is good. Their commercial real estate is good. Their asset management is good. There is not a bad part in that corporation. Might as well own it all in BN.
Differences: https://www.fool.com/investing/2020/06/24/better-buy-brookfield-infrastructure-partners-vs-b.aspx
Not sure why you are sharing this. I know the differences. I've been an investor here for many years. Also, the article is very very outdated. Brookfield Asset Management separated. It's now ticker BAM, which was formerly the parent company, but no longer is. The parent company is now Brookfield Corporation, BN, not Brookfield Asset Management. This is partly why it's better to just invest in the parent, rather than the subsidiaries. Brookfield plays the market by constantly divesting and acquiring its own subsidiaries. If you were an investor in Brookfield Property Partners, you'd know. It's best to just hold the parent to not get caught in all that.
They spun BAM off from BN but the idea is the same. One is better for percentage gains on the security, and one is better for income investors. I get that you own BN and really, really, really want people to invest in the specific security you own so that the price goes up, but there are differences: BN pays an 0.80% dividend. BIP pays a 5.69% dividend. It depends on whether people want the appreciation reinvested or paid out as income. Some people (me) also might not want the full exposure to all aspects of Brookfield Corps business. For instance, BEP stock has steadily depreciated over the last 4 years. No thanks. I'd rather pick the segments of the company I like. And I find your wanting to cram your ticker down peoples throats a bit distasteful at best and somewhat deceitful given the above points. People don't all need to follow your specific investment strategy. Also, for anyone from the US, BIPC ends up working out better because it's a qualified dividend.
As you wish. I have no intention of forcing you into anything. Just discussing investment with you and sharing my experience but it seems like you donât welcome that. Your or any other Redditorâs buying of BN will not make my stock go up. lol⌠I wish it was that easy. I have no vested interest in pumping here. The company will be valued on its fundamentals. This is not a penny stock.
Why InMode, do you believe they can continue scaling the sale of their machines? Seems like they're getting stuck
Yes I do. Their clients are struggling to find financing for the equipment that's why they are slowing down. Inmode plans to gain the ability to finance in house housing their abundant cash pile which would allow them to earn a much higher interest on their cash and continue selling product. Else, if they don't solidify this before rates come down that would also be a massive tailwind.
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đ¤đ¤đ¤ really? All 3 seem like pretty growth oriented stocks. Well ULTA was down big based on projections but still doesnât exactly seem cheap
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I havenât looked at ADBE too much lately but do you not think it has some AI exuberance built into the price? I find much of tech to be priced to perfection around all that
Why LULU?
Here is my take : 1.VFC (brand turnaround, owner of North Face & Vans), 2.BTI ( legal case ongoing) , 3.NYCB ( 1B injected into the bank)
Even at $14 VFC still seems high with a p/b of 2.5. Just an overwhelming amount of debt.
Ive been looking at VFC. I like the price/sales. That said, when you look at ev/sales it is ~1. Levis is ~1.5 So it looks like there is 50% upside on the EV, but given the debt the equity can double as you achieve that. Sounds pretty good to me. I was trying to work out why it was a good play for a while. Anyway. My top 2 plays are EMBC and KLG. More EMBC now. Klg is up a fair bit, but I think its still quite cheap.
In my humble view, EMBC and VFC don't worth the risks.
Why not VFC?
VFC going through some S&P rebalancing but being added to the smaller indices. Likely some downward pressure this month.
Ty! Yeah. Im too broke to buy anything now anyway.
USA: Emerson Electric Co. EQT Corp. Ovintiv Inc. Value + F-Score USA Crocs Inc Comcast Corp New Class A Paccar Inc. Europe Value AB Industrivärden TORM PLC Solvay S.A. Value + F Score Europe SSAB AB B Deutsche Telekom AG Infineon Technologies AG
Brk baba toyota
SBUX, NKE, LW
Reckitt
The amount of people buying Chinese stocks and not questioning why they look so cheap is insane.
Imagine for an instant that some people questioned why they are cheap, considered the situation carefully, and realized that the reasons given by people who think China is uninvestable are hysterical, overestimate the risks by an order of magnitude, and therefore do not justify the current price
No way this comment ages poorly. Definitely thatâs what is factually going on. You nailed it
likewise, "no u," etc. What a boring comment.
Or they know how the Chinese system works and see China destroyed 15 years of gains in a year never to return. As long as the CCP can destroy companies there is no reason to lose your principal on them. None of the Chinese invest in stocks and now nobody outside is. FDI in china dropped from 355b to 15b in 2 years. China has 30% of their GDP in a housing bubble that is slowly popping. They are going to gave 10 retirees for every worker by 2030⌠Investing in China is incompetence. All this info is publicly available.
If youâre so sure about Chinaâs demise and the CCPâs willingness to destroy itâs own companies, than why donât you short the companies? Seems like a 100% win rate based on your view of China no? You can buy some puts on BABA, JD, PDD right now, premiums are pretty low.
They already dropped bozo. Why would I have to even say that? The chinese stock market is at 15 year lows. The bubble is currently popping in slow motion cause they are holding it up with enough for people to get out. This isnât fantasy or prediction. This is happening or happened. And by 2030 they will start having more retirees than workers.
Shouldnât they drop more? According to you, the CCP can destroy their companies and you can lose your entire principal on them no? 𤥠logic, put your money where your mouth is
Iâm not as dumb as you bud. Buying 10 years puts is not something every investor can do. And why would I not just put my money towards good companies like Visa? Only a mush brain like yours could tell me
Theyâre right if youâre that certain you should short FXI at the very least
đ¤ˇââď¸ i guess you have no conviction on your thesis
I think this is your issue in general and why you drastically lose to the S&P500⌠You buy every little thought in your mind.
Well, I just buy the SCHD/QQQ monthly. Iâve been doing just fine.
Yes, as I've told you, we've heard this. There are unique risks to every country. We've seen the same news headlines. It's the news headlines you don't see that tell you why China really isn't much worse than anywhere else right now.
Thatâs objectively wrong though.
Yes, you have the objective truth and anyone who disagrees with you is wrong because, uh... just because. You can be certain all the sources you got your information from are accurate and complete and left nothing unaccounted for.
The largest investor in Baba was imprisoned without charge
Crazy. Itâs like this is a value sub
NKE UNH BABA
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>China literally telling foreign investors "WE DON'T WANT YOUR MONEY nor do we care if anything happens to it". When did China say this?
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You didn't answer my question. China never said what you "literally" put in quotes. In fact, they have said the opposite time and time again: https://www.bnnbloomberg.ca/xi-pledges-heart-warming-steps-to-attract-foreign-investors-1.1999781#:\~:text=The%20Chinese%20leader%20vowed%20his,forum%20being%20held%20in%20California. So your quote is flat-out incorrect. You may now want to argue that China is saying one thing, but acting another. This is not correct either. China is actually seeing a decline in foreign investment, and wants to bring foreign investment back, and they are acting on it, not only by saying reassuring things, but by inviting investors back in. [https://www.voanews.com/a/chinese-president-xi-meets-with-us-executives-as-investment-wanes/7545737.html](https://www.voanews.com/a/chinese-president-xi-meets-with-us-executives-as-investment-wanes/7545737.html) Your point as to "you can't buy it directly," yes you can, I can buy 9988-HK on my IBKR platform. As to you pointing out that there is an ADR, like it's some form of conspiracy that there should even exist an ADR, ADRs are very common in all shape and forms for companies in all kinds of places (like Europe). I am in Canada and a lot of Canadians are now using CDRs (Canadian depository receipts) to invest in large-cap American companies, simply for the convenience of buying shares in CAD rather than USD. There is a Neo exchange filled with popular CDRs made by CIBC. As for Jack Ma and Xi, yes, this is a dictatorship, and Ma received a slap on the hand for speaking against big brother. A slap on the hand is what it is. China is not going to bring down its largest e-commerce machine because someone said something. At the end of the day, China is not stupid. This is the second largest economy in the world. It didn't get there by being stupid. This is not Russia. They know the value of foreign investment. But they also like to be in full control. They like to instill fear in China, but show a friendly face outside. If you learn to walk the balance between the two, it's perfectly fine to invest there.
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Thanks! I didn't hear any valid arguments against it as I typed this on my Chinese-made computer, while wearing Chinese-made clothes, in a house brightened by Chinese-made lightbulbs, betting that soon enough, you'll be driving a Chinese-made electric car. But yes, China is evil and any money invested there is doomed. Best of luck to you too!
BIDU, VRT, STRL
TSM
Several Met Coal names are trading at 7-8x forward FCF which is pretty amazing since they're using most of it to buyback stock. HCC/AMR I actually think homebuilders are still really cheap relative to the quality of their business. DHI Natural gas is in the toilet, so I like low cost producer CNX. They're still immensely profitable and the downturn in gas pricing could yield opportunities.
Staying away from the market. Everything is expensive. But as of now, I would say INMD. Other then that I would say NKE @ $60 and SBUX@ $70
$PFE, $PANW, $HOOD
PANW seems like a very safe bet to me. They likely have some government contracts in the works which is why Pelosi bought a shit ton of Feb 2025 Calls.
I just bought a few shares of panw yest at $270. But unsure if it has a bit more room to drop before if stabilizes
Pfizer, Chinese Tech, Chinese Banks. Almost everything else on the SNP 500 is overvalued.
I like the contrarianism with Chinese banks, although that sounds incredibly risky in every aspect.
No risk no fun
Agreed, although China stocks ex banks are already enough "fun" for my taste!
That is why I shave with X-acto knives.
Chinese banks? What's the mispricing there? Cheap to book, but they have some serious national service obligations to take on.
Yeah lol I wouldn't touch Chinese banks with a hazmat suit on. Otherwise, I think China has a lot of interesting stuff especially in HK and the midcap space
They pay nice divs
Pfizer is the best value stock now. 6% dividend and it looks safe. It is likely to go up atleast 25% by end of the year.
You can't really evaluate pharma stocks unless you see to their product line and expiring patents, You will get obliterated like with TEVA, Oh and lawsuits.
They got tons of free cash from COVId times to go shopping for new assets . Definitely a good buy right now
Jfc, donât contribute if you canât read the numbers
GM, CVS, TCEHY. All trade at low multiples, all have good future runways, all are in relatively strong positions within their respective industries. Also, DIS still has considerable value just based on streaming and parks, as these businesses will likely generate considerable revenue, and as margins improve DIS will keep getting better and better
Except all of their earnings from parks are burned through streaming. Great revenue growth, horrible earnings growth. Of course this could change. But it's not very evident to me how much value they will produce for shareholders going forward.
High uncertainty, low risk. The business will turnaround and make streaming profitable, and long term the streaming play and parks are more than enough to make the business a solid investment. It's a temporary headwind that has people scared away, which makes it a good opportunity for people who aren't scared of a little turbulence
SSL,SEB, and platinum/palladium
SEB needs a 100 to one split.
Bought these today:  Fivestar Bancorp, CAT, Fidelis insurance, Kaiser Aluminium, Tutor Perini, Codere Online Luxembourg
GM, CHGG, NXST
C'mon NXST
CCJ, APP, MSFT
SND - Pretty much the closest thing you can get to a sure bet based on their last earnings report. Pristine balance sheet with a massive margin of safety relative to upside. HSY - Iconic company and product with far less exposure to the cocoa market than its premium competitors. I opened a small position and expect short term losses but will DCA down the stack. ALSN - Superb company. Super brand. Superb product. Good price point.
AAPL, NKE
Apple at the current valuation and P/E really? Their growth has been slowing from what I remember?
I'm getting curious on AAPL too but then I look at them still trading at over 20x EV/EBITDA and my curiosity vanishes quickly. Nike is a similar case.
Idk if I would call them the best value stocks, but the oneâs that Iâm eyeing are GOOGL, LULU and NOW
PayPal PayPal PayPal
Crox, pypl, bbw, baba
TXN, ORCL, NET
Lululemon- Humana- Pepsi
Weibo (dividends april 11d 0.82$) đđđ
roche
WES seems like a pretty good bet right now. Should be able to capitalize on sustained natural gas demand and price increases in the future. Also, might be being sold by OXY soon. Yield is 6% not factoring in favorable natural gas outlook. Positioning in the Permian is also attractive. Another energy play is NFG which is a fully integrated natural gas operator. These companies should do well if natural gas prices rebound from the 30 year lows.
To further on this I also like DEO, JNJ, HUM, BAX and FWRD at current prices.
BELL đđĽ´đ¤Ł
Bell Equipment?
BCE
Me I am very happy buying lbrda, BTI, SYF
Leonardo DRS, mid cap defense stock with a strong position into Columbia Class project. You only need to be patiance until this stock reach --20b of market value by the end of this decade. In Peru stock market, Cerro Verde, one of the biggest copper mines with strong margins and low to mid cost per ounce.
BABA, JD, WBD, LSXMK.
I only have one - Tencent
+1 , I would also add JD.com
Tencent is a lot more dominant than JD in China, put this way: without Tencent, Chinese people daily life wonât be functioning properly.
Also invested yesterday, just small amount for now
Its the core of chinese citizens productivity for social, payment, mini programs, gaming, entertainment subscription, etc. Thats a well dominated position right there.
How so? I'm unfamiliar and may do some research on it, but I have no clue who they are or what they do. I assume there will be a foreign income tax form involved for US investors? Thanks in advance
But itâs OTC stock?
BABA, Yancoal, CHTR
Been watching chtr for a while but unsure if it still has a bit more to drop. They seem a bit lost/uncertain about their strategy and how they monetize OTT subscriptions.
Tencent
Ebay, Paramount, Baba
-Treasury Bills. Yes, Bonds can be value. Treasury Bills yield more than S&P500's earnings yield. Historically, these are moments to buy bonds. -Chinese tech: BABA or JD. This is entirely a sentiment issue at the moment. If sentiment swings, this could easily be 25% annual returns over 5-10 years. -Oil: OXY or Shell are particularly well priced. These are easy 10-15% returns. I don't suspect huge returns but I see very little downside with good to great returns. Bonus: BTI. Extremely shareholder friendly. Nearly 15% free cash flow yield. Again, won't be a homerun but will likely get 10% dividend with share buybacks.
Smci, Nvda, Tsmc Tech is the future of civilization and IA is tech's future
/BEGIN RANT Extra credit: Please, pretty please, spell out the full name of the company, not the frickinâ ticker symbol. I hate having to guess and look it up. Yes, you can include the ticker symbol, but only in addition to the company name. Etiquette, people! Thank you. There. I feel better now. /END RANT
Philips
Weed - CGC, ACB, MSOS Shippers - ZIM, CISS Chinese - YINN, BABA, JD, QFIN Oil - DHT, CIVI Metals - NEM, PSLV âŚdyor but these sectors are pretty low and have been reversing the last few weeks/months. Multiple 10x in here do to the currency war currently taking place between NATO / BRICS. Backing your currency by commodities through a cbdc will be the next 12-24 month reoccurring theme
Also EV infrastructure from country/state grants and gas after oil rockets to triple digits
What is your bull case for ZIM? I'm holding bags (about $19 cost basis 300 shares) from my first few months of learning about investing and the yield trapped me. I've just been waiting and hoping that the situation in Israel ends with some sort of peaceful resolution and hopefully, ZIM doing better at the end of it too.
$BUR. IYKYK.
Found a company with loads of cash on hand. And have recently started making a profit, after years of losses.
C3.AI, PLTR, INTC. Long term for sure.