Weekly Snack #39
New Investment Pitches, General Research, and Tweets of the Week
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Investment Pitches
TL;DR:
While many are leaving make-up for dead at the moment, like Estee Lauder (EL),
goes over L’Oreal and its business. Given that it’s been underperforming the market, it warrants looking at as a potential turnaround if the stock is able to stabalize. With ROIC north of 20% for the last 5 years, it might eventually become a “no-brainer” as the author puts it.
TL;DR:
The meteoric rise of Tesla (TSLA) is largely driven by a “removal of fraud” risk factor. Even though the company trades at a higher P/E than it did in 2021 when it had higher profit margins. This is essentially pricing in a Musk “get out of jail free card”. The issue is, will this valuation be able to hold if underlying fundamentals don’t continue to deteriorate.
Tweets of the Week
General Research
Podcasts
Appreciate you taking the time to read Weekly Snacks. I hope you have found at least some of these links to be interesting enough to dive into yourself.
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Until next week,
Paul Cerro