7/11/24 - $psmt - Another beat; LT buy <$807/11/24 :: VROCKSTAR :: NASDAQ:PSMT
Another beat; LT buy <$80
- You like NASDAQ:COST at 50x fwd EPS and low teens (at best) EPS growth?
- In the same vein as my comment on NASDAQ:LULU > $NKE... you own the smaller co that's proven itself/ it's niche and is growing faster at a more attractive valuation (always). usually you pay MORE for this once you reach validation
- NASDAQ:PSMT is the costco of central america (+ colombia + some islands). they are growing EPS at mid teens and valuation is in the high teens PE.
- stock has done the exact same donk move the last two BEATS (see green arrows) and proceeded to march higher
- this also follows my strategy of identifying potential smaller caps that will run in the coming weeks/ months/ year ahead which require 1) good balance sheet 2) growing 3) reasonable valuations
- this is not an obvious *pop* play like some of my recent dip buy rec's ( NASDAQ:OLPX , NASDAQ:TXG , NYSE:OLO come to mind)... but something you can DCA into and likely earn a nice 15%+ annualized. it's a compounder esp how they're executing and beating earnings (multiple WILL go up in time).
- my theoretical take profit here is in the low 90s, perhaps i rent some upside selling C's here. maybe i sell the whole thing and like other opportunities. maybe it goes up 5% in the coming days (it was up 7% pre market!) and i decide that's good enough to have rented the stock for some short period of time. i don't beholden myself to anything. water my friends... be like water as mr. bruce lee says.
lmk if u see it differently or agree
V
