DTC Index: Relative valuations at multi-decade lows
Consumer Staples
Douglas Lane’s DTC Index trades at a 45% discount to the S&P 500, which is the lowest prospective relative P/E ratio for the Index since the tech bubble 20+ years ago - Douglas argues value-oriented investors may want to start to move into some of the names in this group given their financial strength, above average gross margins, strong FCF generation and pricing power in what tends to be more defensive product categories. Buy-rated stocks include Herbalife, Nu Skin and Medifast.
Detecting Meaningful Language Changes in Security Filings…
Analyses of text changes in 10Qs/10Ks offer unique insights into management intentions and company internal projects. Recent noteworthy changes include:
Arista Networks (ANET): Order cancellation concerns and customer price sensitivities.
Endo International (ENDP): Actively planning / preparing for a Chapter 11 Bankruptcy filing?
GoDaddy (GDDY): Uncertainty on customer demand and growth; plus FTC / CID issues re. regarding data privacy / security practices.
Herbalife (HLF): Unwilling or unable to increase prices due to supply chain issues / higher costs.
