Consumer Discretionary
RIP - Brian McGough told clients back in Feb’21 (with the stock at $79.62) that SFIX would revisit its IPO price. This print was the nail in the coffin (share price tanked 20% as 2Q guidance massively disappoints). Brian’s view at the time was that the new Direct Buy initiative would turn the company from a niche subscription model to a typical retail model and have a dramatic negative impact on its financials and ultimately the multiple of the stock. The three growth pillars the company has just outlined will create more capex, more SG&A, more working capital, and more competition for customers and share. The stock is headed below $15.
Edition: 125
- 10 December, 2021
Post-Pandemic Model Portfolio’s outperformance continues
Since inception (31st Dec 2020) Nathan Weiss’ model portfolio has generated an impressive +25.09% total return (vs. +11.12% for S&P 500). He is currently 38.3% net long the energy sector (incl. Kayne Anderson Energy Infrastructure, ChampionX, Energy Transfer LP); 17.1% net long ‘re-opening’ names (incl. Dave & Buster’s, Six Flags) and 29.6% short ‘stay at home enablers’ (incl. Stitch Fix, ARK Next Generation Internet, Etsy, Wayfair). He recently increased his short position in DoorDash - sees >50% downside in a matter of months.
Edition: 111
- 28 May, 2021