Category: Research – Brandon
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Value Hive: 3 Big Things with Matt Sweeney
Good morning and Happy Wednesday! This week I’m trying a new content format called “3 Big Things,” or “3BT”. 3 Big Things distills all my podcast episodes into bite-sized mini-essays. Each piece features the following: One Conversation (Stocks, Psychology, Markets) One Framework (Mental Model, Analytical, Behavioral) One Idea (Long or Short) We’ve got 130+ episodes to break…
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Rent-A-Center (RCII): A Cheap LTO Retailer w/ 30% IRR Potential
Rent-A-Center (RCII) is a Lease-To-Own (LTO) operator with ~1,900 locations between the US, Mexico, and Puerto Rico. They also own Acima, a leading virtual LTO operator.As the name suggests, RCII leases items like furniture, appliances, electronics, computers, smartphones, and more to customers with plans starting as low as $10.The stock’s down over 40% YTD on…
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Quality of Earnings: A Book Review
Quality of earnings matters. As such, it’s critical to know what makes certain earnings “high” quality and others poor. There’s arguably no better book on this topic than Thornton L. O’Glove’s Quality of Earnings book.Penned in 1987, O’Glove offers evergreen principles on earnings quality through a combination of accounting, business analysis, and common sense. I’ll examine the…
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MIPS AB (MIPS): Supplying The Ingredients For Safer Helmets
My wife’s brother almost died last October because he wasn’t wearing a helmet. He suffered severe brain bleeding and eye nerve damage. For months the only thing he could do was lie in bed alone. No sounds or external stimuli. He couldn’t read a book or listen to music. Just watching him made me depressed. The sad part was…
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Using MO’s Heads Up Display (HUD) To Bag A 6R Profit
Steve here. You wouldn’t wear a coat in the dead of summer, would you? The same goes for trading. Why would you go long in a market dominated by a bearish trend? Our Heads Up Display (or HUD) has several tools that allow operators to examine the market from a regime-based perspective. Our tools use Van Tharp’s time-tested…
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Westlake Chemical Partners (WLKP): Stable Cashflows For A Decent Price
Westlake Chemical Partners LP Westlake Chemical Partners LP (WLKP) acquires, develops, and operates ethylene production facilities and related pipelines for its parent company, Westlake (WLK). Ethylene is a key ingredient, helping create various finished goods we take for granted. The plastic wrapping on grocery store chicken breasts? Ethylene. Those chemicals that you use to clean…
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Nobody and Everybody is a Macro Trader
“People always forget that 50% of a stock’s move is the overall market, 30% is the industry group, and then maybe 20% is the extra alpha from stock picking.” – Scott Bessent This week we’re unpacking a critical (yet often misunderstood) aspect of investing: Nobody and Everybody is a Macro Trader. But before we do that, I…
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Q1 2022 Classical Charting Performance Review
“I will be first to admit that charts do NOT forecast price – they show path of least resistance and provide excellent risk management tool.” – Peter Brandt If you’re like most market participants, you’re probably worrying about navigating today’s turbulent environment. Maybe you’ve placed a few profitable trades, only to see most (if not all)…
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The Bull Case For 1stDibs (DIBS)
Luxury design online marketplace 1stDibs (DIBS) is now trading at “stupid cheap” levels. At the same time, its business continues to execute and grow its (already leading) competitive advantages. The company currently offers investors a chance to 5x their money in ~3-5 years with considerably less downside risk at the current price. In this note, I explain…
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Fundamental vs Technical Analysis: Key Differences
“Fundamentalists who say they are not going to pay any attention to the charts are like a doctor who says he’s not going to take a patient’s temperature.” – Bruce Kovner Bruce Kovner went from cab driver to Market Wizard. How did he do it? The short answer: Reading the charts and respecting risk. Check out our…