Last Black Friday’s “Inevitable Retail winners” post got some really interesting feedback and recommendations for stocks that could fit the “inevitable” winner mold. My personal favorite recommendation was a friend who mentioned Sweetgreen (SG) as an inevitable winner….. but only if Americans would stop being such pigs and actually care about their health (so basically no chance!).
I think part of story is also about relationships with suppliers, inventory turnover, payment terms, and when suppliers are paid. AZO has a pretty unique business model (there is a good Business Breakdowns on it) that is pretty hard to replicate. They’re dealing with a pretty unique customer base and it is hard to compete with them (as far as I know you can’t buy auto parts on Amazon).
LOVE seeing ASO get the shoutout. Considering fundamentals, unit growth, capital returns, and 6 forward P/E it really does feel inevitable. I did a write up on it here... would be grateful for your feedback.
I agree 100% of $ASO. Having a concept with nice FCF conversion after store expansion strategy cap-ex (60% in $ASOs case) allows you to leverage the returns via buybacks. $ABG has about 70% FCF conversion. I like the growing retailers with high FCF conversion.
No apologies needed. We buying Dec 1 ASO puts ASAP. ez game
I think part of story is also about relationships with suppliers, inventory turnover, payment terms, and when suppliers are paid. AZO has a pretty unique business model (there is a good Business Breakdowns on it) that is pretty hard to replicate. They’re dealing with a pretty unique customer base and it is hard to compete with them (as far as I know you can’t buy auto parts on Amazon).
LOVE seeing ASO get the shoutout. Considering fundamentals, unit growth, capital returns, and 6 forward P/E it really does feel inevitable. I did a write up on it here... would be grateful for your feedback.
https://open.substack.com/pub/matthewtblake/p/academy-sports-outdoors-aso?r=nd0jb&utm_medium=ios&utm_campaign=post
I agree 100% of $ASO. Having a concept with nice FCF conversion after store expansion strategy cap-ex (60% in $ASOs case) allows you to leverage the returns via buybacks. $ABG has about 70% FCF conversion. I like the growing retailers with high FCF conversion.
Wow, FWRG feels like an old-school 90s era small-cap. Appreciate putting it on my radar!