07-31-2021, 06:59 AM
Also, let me clarify my narrative on VSTO. Amazing turnaround story. Train wreck after IPO and a new CEO fixed it. Growth rate has been crazy good, debt low, PE low, little company buying back stock two years after it looked like they might BK. They added some great outdoor brands at the perfect time for Covid and the re-opening. They are also the market leader in ammunition sales. They bought struggling competitors in BK proceedings just as social unrest scared the nation. Then a DEM was elected president which usually sells more guns. Oddly enough VSTO sold off their gun manufacturing business because it is just high drama and hurts your multiple. Sounds like the perfect stock to own right? Well it was and it ran from 5 to 40+ where it is now. What happens when 90% annual growth turns into 15% which would be more normal? I don't know for sure but the easy money days are about over IMO. I'll hold some long shares but I am about to start selling covered calls to trim my positions. This is a small cap I turned into a core position. I sold options very profitably for a year. I can't lose if my VSTO shares pulled back 75%. It's about timing. If VSTO pulls back, then buying a few shares for a couple year hold probably pays off in a year or two. Buy now and you could be down 20% when the growth backs off a little which it certainly will unless this is the next Cabela's.
WEC is an example. I hyped them because I know the company. They did run 20% quick and it was no longer a strong buy. I trimmed when I should have. Nothing changed with the company story throughout any of this but chasing winning stocks is dangerous.
WEC is an example. I hyped them because I know the company. They did run 20% quick and it was no longer a strong buy. I trimmed when I should have. Nothing changed with the company story throughout any of this but chasing winning stocks is dangerous.