Tag Archives: Buybacks

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Smooth ride or highway to hell for Harley-Davidson?

When a company announces a big buyback (percentage-wise, I don’t care about big headline numbers), I usually start to get interested, provided the case is overall solid. Harley-Davidson on the surface checks several boxes like a famous brand, a loyal customer base, a rock-solid balance sheet, relatively stable earnings and cash flow generation paired with a low valuation – and on top now also a new aggressive buyback program of the equivalent of no less than 20% of stock outstanding. Is this now an incredible contrarian opportunity?

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Back to 2012 after the blocked acquisition – is Capri Holdings a buy?

Last year in August, struggling Capri Holdings, known for its brands Michael Kors, Versace and Jimmy Choo, received a bid from competitor Tapestry. Capri’s stock surged by 50%. However, the Federal Trade Commission (FTC) wants to block this deal in fear of market concentration. As the deal still hasn’t closed and court hearings are ongoing, the stock lost now the complete bid premium. It fell even back again to 2012-levels. Is the stock a buy now?

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Why you should look out for Cannibals

My perception is the majority of stock investors do either prefer dividend stocks or something with a high growth component like first and foremost technology. The third group would be turnarounds (which I am also not opposed to). What is much under-appreciated, though, are cannibals or buyback monsters. I think this topic should earn more attention. Good for those who know about it.

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Dollar stores with discounted prices, but expensive shares

Physical retail stores as a whole in most developed countries have more likely than not reached their peak. However, there is a sub-category in this sector that is expanding quickly. More than that, the so-called “dollar stores” have even been beneficiaries of a diminishing middle-class. Are the respective stocks a good investment idea, especially as inflation is trimming budgets?

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