mardi 25 octobre 2016

Stingray, Sleep Country and Spin Master

You're not a serious investor? You're looking for new names without any track record? You want high growth without any insurance that the growth can still be there in the future? You want a new messiah, because the old ones are not that original? You like the expression: "A beau mentir, qui vient de loin?". You don't give a fuck about the fact that many high growth stocks go nowhere after one or two great years?

I have three picks for you. As I wrote, their track record are short so the numbers are pretty limited.

You don't care because you can see a trend in a one year chart?

Really?

Fuck you.

Stingray (RAY-A.TO)
Actual ROE: 21
Forward PE: 17
EPS growth 1 year: 186%
Performance 1 year:  15%
Dilution / buyback:  high dilution
Debt level: medium (6 times earnings)

That stock has recently been recommended by Alain Bouchard (Couche-Tard) on television, in Québec. He seems to think that the CEO of this business shows a lot of potential. I don't think that Alain Bouchard, one of the top managers in the history of Canada, could praise the work of a stupid guy. So, it may be a stock to remember.

Sleep Country (ZZZ.TO)
Actual ROE: 33
Forward PE: 19
EPS growth 1 year: 118%
Performance 1 year: 102%
Dilution / buyback: high dilution
Debt level: medium (5-6 times earnings)

Please, take note of the hilarious ticker of that stock.

That stock looks great because this industry is boring/relaxing (mastress). That's exactly the kind of business that shouldn't be affected by anything. Or, at least, not many things (regulation, innovation, etc). 

Spin Master (TOY.TO)
Actual ROE: 61
Forward PE: 19
EPS growth 1 year: -51% (negative)
Performance 1 year: 57%
Dilution/ buyback: high dilution
Debt level: medium (5-6 times earnings)

That business builds toys. They have a big blockbuster (Paw Patrol) which I know jack shit about. My heart became black when I started investing. 

Jason Donville seems to like that one. Well, I'm not so sure because I don't know if he's still alive. If he's alive, I think he likes it. The ROE is great there. And I don't know why there's been a decrease in the EPS over the last year. Probably some of that usual shit about these stocks without any track record.

Some fucking random event transforming a superstar of the market in some fucking Avigilon shit.

4 commentaires:

  1. Very colourful expression: À beau mentir, qui vient de loin?

    when you're a stranger somewhere, you can make things up easily. Nobody knows you well enough to call bullshit on you.

    I just love new growth stocks that are growing like crazy...until they miss their sales estimates by 2% and lose one third of their value overnight.

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  2. A small part of your portfolio in that kind of stock is OK. But not your biggest position.

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    Réponses
    1. Constellation Software just announced another solid quarter last night, and has the shareholder report and management discussion and analysis report up on their website.

      http://www.csisoftware.com/investor-relations/shareholder-reports/

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  3. Yeah. Great results. Same for United Therapeutics.

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