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?


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.

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

    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.

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