Amvona

Listen to Fr. Emmanuel live discussing an update on The Amvona Fund, LP's recent investments as well as thoughts on the markets

Lemelson Capital Management Logo resized to 220 pxListen to Fr. Emmanuel live on November 10, 2017 discussing an update on The Amvona Fund, LP's recent investments in the retail sector.

“…honestly, I thought it [Hibbet Sports] was one of the best value investments we had come across in the last seven years… we loaded-up substantially… we bought a huge block of shares between $9.40 per share and $9.50 per share, I couldn’t believe it, the price”

“some of the things people are saying about them [Hibbett] are not really rational, like saying, ‘it’s too little too late for their ecommerce’… why would you bet that they’re not going to benefit from having an ecommerce business? I think they’re going to do their omni-channel business extremely well… it’s an incredibly well-run business, I think it’s going to be a home-run for us… we already have a very significant rate of return…”

Interview includes an update on the fund's stakes in:

  • American Eagle Outfitters (NYSE: AEO)
  • Guess (NYSE: GES)
  • Express  (NYSE: EXPR) 
  • Hibbett Sports (NASDAQ: HIBB)
  • Domino's Pizza (NYSE: DPZ)

Commentary also includes an in-depth discussion of the market, macro-economic issues, and an update on the performance of the above commitments since the last interview on August 25, 2017.

Listen to the full interview here.

From the August 25 2017 Benzinga interview:

“…the retail sector has presented some extraordinary opportunities, probably some of the best I’ve seen in many years… we recently started buying into the retail sector, basically at the bottom, we picked up shares in American Eagle Outfitters (AEO), Guess (GES), Express (EXPR) and frankly the one we’re most excited about, Hibbett Sports (HIBB)… we’ll keep buying, especially Hibbett… we were buying at $9.40-$9.50 per share earlier in the week… Guess and Express are not as strong…”

The following represents the performance of the subject issues since the August 25, 2017 interview:

HIBB FINL EXPR GES AEO chart

HIBB FINL EXPR GES chart

HIBB FINL EXPR chart

HIBB chart

On the Domino’s short:


“…at the core of the Domino’s bubble is a failure of corporate governance where you are tying the CEO’s pay to stock price performance, so what you get is a highly promotional CEO… the model is very poor, in my opinion a ‘house of cards balance sheet’, where is your margin of safety when your buying that stock?... what you’ve got is a CEO whose been able to leverage up the company at really low interest rates, during one of the longest bull markets in history… so I think it’s going to keep falling…” I think our average short price on that is $187 and we’ll keep shorting it in the interest of full disclosure…”

DPZ AEO GES EXPR HIBB chart 4

 

Amvona News

Amvona publishes critical articles and interviews at the intersection of Faith, Finance and Economics.

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