Please stop it... A beagle drooling is not a pretty sight lol
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Lov numbers are just incredible. Personally I can’t mentally commit to investing in these super high growth companies with super high multiples. It would keep me awake at night lol.
I’m actually a bit of a wuss and have recently decided to seek out low rated companies that have modest growth ahead. That way the fall isn’t as punishing when things go wrong. HLG fits this nicely. One day HLG will buy wrong for a season and turn in a bad quarter or half. But the SP impact should be rather modest and if they can keep paying a dividend then all good just sit back and wait for the rebound
GARP (growth at a reasonable price) is my #1 favorite investment strategy, Others I hold a decent stake in that fit the bill nicely are TRA, HGH, OCA and ARV. GARP stocks generally hold up well in a higher interest rate environment because the DCF valuation is less affected by a lower terminal growth rate. High growth - high multiple stocks where you're banking on huge growth in the long run can be hurt a lot in terms of the impact on their valuation when discounting back their long run future growth at higher discount rates. This is something to really watch for in 2022, (how the high multiple stocks hold up)
Don't think of it as being a wuss...think of it as being a prudent conservative investor.
Very, very rare for me to own a stock on a forward PE over 30 and I won't own stocks that don't actually make money no matter what promises they make or how good their prospects appear. Others have a different approach with such things and some do very well but I stick to what I know works well for me. LOV would never come under consideration from me at that multiple.
Talk of fabulous long term growth is one thing...paying super high multiples for it is another. I guess, (unsurprisingly for an accountant) I'm a real "show me the money" sort of guy which is why HLG is one of my favorite stocks. Twice a year they really do show me the money, lots of it ;)
This is my original LOV post,posted 1-5-2017.
You will note the PE was 17.4. From memory their growth rate was between 25% and 35%.At 35% their pe was half their growth rate.So was a very simple decision to make to invest in them.The trust I help out on bought 10,000,sold 3,000 to give it a free ride.Still holds 7,000..Any time I see a growth rate twice the current PE I get very excited.Got excited the other day and doubled my SEQ [asx] holding,Again pe of 15 with an expected growth rate of over 30%.
With thanks to Noodles and KW.
105,000,000 shares on issue ,giving a market cap of $403,200,000 at $3.84.
eps.22.07 cents....PE 17.4 ...Div Yield {australian] 3.13%
Lovisa produce and sell Fashion jewellery and accessories.
They have stores in Australia,NZ,UK,Singapore,Malaysia and South Africa,and have franchise stores in the Middle East.
The company utilizes daily inventory monitoring from its centrally located warehouses in Melbourne and Hong Kong.
They trade from "smallish" stores in very high foot traffic Malls.The pay back from opening a new store is usually under 18 months.
Logistics are made easy by jewellery being small.Airfreighting product around the world is cheap,and fast compared to TVs,clothing etc. This aids stock turns.The products appeal to women of all ages.
I keep an eye on Westfield Riccarton store.Allways busy.
Today they announced an earnings upgrade.
Thanks for posting Percy. High growth and under 20 PE, wow what a find. Guess it’s much much easier to hold now that it’s all profits. Buying in today however, hmmm that’s hard.
Might have to have a look at this SEQ, wouldn’t mind a multi bagger like LOV.
Maybe HLG will do it in time 😎
retail may be bouncing back for November but the warning signs in the news today of pain coming for Auckland. Of course it may mean a big boast for central north island BOP and thames not in the HOT ZONES.
Dont see these retail stocks taking off again until some new number hit the wire later in the summer.
Luckily this is an AUS dollar story. Lets see how the Kanga's party over summer with OMC giving everyone a sniffle.
The Auckland exit will be big this WED to SUN...
No doubt many outside auckland have their Quest and Family room already booked out with the pending arrivals..
getting a dinner table may be impossible later this week in Hamilton and the Mount.
Not a Chance ... its an AUSSI story...
i dont recall the Kanga's giving up in the face of any thing... Kokoda trial WWII.... Long Tan... Not to mention WWI...
who would want to sell when the War isnt over?
Should be some great buying in europe over the winter there ...
Our new software platform powered by our new scripting IOT solution is just powering up ... to busy to sell anything at the moment... BUY all the EBOS one can get across all portfolios...
MORE we want MORE!!!
it summer and the aucklanders are arriving Wed Day for shopping before heading to the Beach's of the BOP friday....
they will give up on northland , NO STICKERS!
what a JOKE!!!
whatch out BOP here they come!