12/27/24 - $ktycf - Solid LT buy sub $6, but patience12/27/24 :: VROCKSTAR :: OTC:KTYCF
Solid LT buy sub $6, but patience
- as we close out the year i scan my X bookmarks for names i've flagged that required some R&R time to explore
- Kits Eyecare is an interesting name, canadian
- I like warby parker, but the valuation just couldn't hit my sweet spot and while some of you think valuation doesn't matter... i've been around long enough to not want to FAFO again. to each his, her whatever's ever.
- back to the stonk
- super solid >20% topline growth
- GM in the mid 30s is legit, EBITDA mgn is expanding and FCF generation is inflecting
- next year 3%+ fcf yield on the 180 mm enterprise value isn't "amazing" in light of how mr. mkt is treating the small caps (nevermind one that's not even a primary ticker in the US with limited liquidity!)... BUT should they keep growing at this rate, the stock will work in time.
- i've taken a 50 bps position here w/ conviction. i'd LOVE to see it lower in the sub $5 or even $4 region would be an obvious "scale up". one of those rare "easy to understand" businesses that grows and generates cash. still need to do work on the mgmt team, but the results speak for themselves.
- one of those names you buy on weird risk off days where nobody shows up to the terminal. keep it on your watchlist or set an alarm at $5 to take a look.
have a wonderful end of year my friends.
to an even more successful but well-risk-managed '25
V
