by Travis Johnson, Stock Gumshoe | August 4, 2023 4:01 am
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Source URL: https://www.stockgumshoe.com/2023/08/friday-file-earnings-hits-and-misses/
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how do you buy TEQ.ST
Travis uses Interactive Brokers
https://www.stockgumshoe.com/2023/01/friday-file-hard-to-buy-but-worth-it-a-new-addition-to-the-lock-box-portfolio/
Remember that the merger of Anixter and Wesco was the combo of one mediocre company with another mediocre company. That typically does not result in an awesome company.
Investors have been comparing the low multiple and low margins of WCC to its distributor peers for years. It is the “upside” case for the bull.
I suggest you take a tour of some Wesco or Anixter facilities.
They are selling bulky commodity materials to buyers in an RFP fashion.
In my opinion, this is a dramatically different business than the mostly MRO/specialty sales of WSO or FAST or GWW or POOL.
Much more cyclical/unpredictable and makes for a scary situation when combined with a heavy debt load.
It may work, but beware.
Thanks, it is indeed a bit precarious.
Whitney Tilson is promoting 10 stocks from his prediction of an early end to the Ukraine war, what are they?
I also hope Travis feeds Whitney’s info and hints into his Think-0-later. And, I hope he is right about an end to Putin’s war with Ukraina.
That founders agreement for $PRM is brutal. How common is that for public traded companies? This is the first ive seen of one. I dont know how the stock can get much over 10.00 again as it starts to dilute returns considerably. Might look at this company again closer to 2027 haha.
It’s roughly the comp. structure of a 2/20 hedge fund with a high water mark. Insane? Maybe – Travis pays Bill Ackman that amount to manage a portion of his money (as an example, I know PSH is entirely different than PRM).
But PRM would have to go over $14 for the 20% part to kick in and real dilution to happen again from this point forward (they are buying back shares here and there).
It’s very rare for the impact to be that clear and direct, though there are plenty of publicly traded companies that offer egregious stock awards to their executives on a regular basis.
The biggest part of the founders agreement is the “share of gains,” and that shouldn’t kick in again unless the shares get into the teens, but the annual gift of 1.5% (or whatever the exact number was) of the share base to the founders is a bit nauseating as well. Particularly since, for the most part, most of the founders look like fairly uninvolved board members at this point — part of what they should be bringing to the table is helping to find and settle on smart acquisitions, but with the weak revenue at this point they don’t really have the firepower to make acquisitions yet.
Yes, it might be that this company gets more sensible when all of the founders agreement stuff is washed out in a few years, we’ll see. In the near term, it really still depends on demand for fire suppression chemicals.
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Good sell with that Symbiotic (SYM). A surge is followed by a steady down trend in many cases. It’s a week later as I write this and SYM has drifted down 20%.