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Alex Morris  

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  • Lululemon Breaks Out [View article]
    Haha actually I do have a girlfriend Boston, she just isn't one of the people who can afford to pay $100 for a pair of workout shorts during a recession (a lot more common than you might think). This company caters to a niche market; watch out for competition from Nike and Under Armour, or any other company that wants a piece of the margins that come with selling workout shorts for $100. Thanks for the advice, but I'll stick to my investments (companies that actually have competitive advantages). What is LULU's again? What do they do that cannot be replicated? They might sell yoga clothes forever, but not without competition; say goodbye to your margins and sales growth that the valuation is praying for. This consumer fad fits the description of one of Jim Chanos' favorite candidates for a short.

    "He also missed the point that this is about valuations and not an argument about what type of company Lulu is." Not sure what that means? Are you suggesting that this is a fair valuation (nearly 60x earnings)? What is your investment thesis "given my inability to define and frame the investment opportunity"?
    Feb 4, 2011. 06:31 PM | 3 Likes Like |Link to Comment
  • Lululemon Breaks Out [View article]
    inthemoney,

    Like you said, unbelievable; remember though, there is no way to tell when the roller coaster will hit the top right before the big drop. Regardless, stay the course; stick with solid investments in companies with a long term sustainable competitive advantage.
    Feb 4, 2011. 01:17 PM | 2 Likes Like |Link to Comment
  • Unilever CEO Discusses Q4 2010 Results - Earnings Call Transcript [View article]
    "For the full year, commodity costs were around €350 million higher... In 2011, we see this trend of rising commodity cost accelerating sharply as we’ve seen in Q4. To give you a few examples -- Palm oil currently has a spot price of around $1,250 per metric ton, a year ago that was just over 700; Sunflower oil, the increase is similar, from $930 a year ago to around $1,500 today; and Brent Crude as you know is back over $100 plus or minus, and a year ago, it was at around $70."

    Wow...
    Feb 3, 2011. 11:28 PM | Likes Like |Link to Comment
  • Wal-Mart: A Good Old-Fashioned Value Stock [View article]
    "Walmart has not shown that it is shareholder friendly. It has done nothing for more than ten years."

    That has nothing to do with management; that has to do with uninformed investors who are willing to pay 30, 40, and 50x earnings for a company with a market cap of roughly $200 billion.

    Management has continued to deliver over that time frame, at least to the extent that you can reasonably expect for a company of this size. Investors who put money in at the turn of the century paid their dues for failing to look at the valuation.

    Alex Morris
    Jan 28, 2011. 10:24 AM | 5 Likes Like |Link to Comment
  • The Travelers Companies' CEO Discusses Q4 2010 Results - Earnings Call Transcript [View article]
    The Malucelli JV sounds like a great long term opportunity in an emerging market. Excited to see the growth of Traveler's in markets like Brazil looking forward.

    Alex Morris
    Jan 25, 2011. 08:24 PM | Likes Like |Link to Comment
  • A Response to Netflix Short Sellers [View article]
    Unfortunately, when you make money doing something and don't have a strong moat, others will soon be there with you:

    chicagobreakingbusines...

    This isn't to say that Netflix can't be successful. But this is just the beginning of competitors who will eat away at share and profit margins over time...
    Jan 20, 2011. 11:02 AM | Likes Like |Link to Comment
  • 2 Solid Fundamental Stocks for Gamers [View article]
    MDmoney,

    Thus why you can buy GME for 8x earnings versus NFLX at 70x earnings.
    Jan 19, 2011. 10:50 AM | Likes Like |Link to Comment
  • Lululemon Athletica: A Great Consumer Experience Has This Stock Rising [View article]
    Thanks for the article Rafael. Nice to hear something about LULU outside of the usual talks on valuation (which is obviously important, but not the only component).

    Alex Morris
    Jan 19, 2011. 10:45 AM | 1 Like Like |Link to Comment
  • Why Iron Mountain Deserves a Second Look [View article]
    Good write up Brian.
    Jan 18, 2011. 11:31 AM | 1 Like Like |Link to Comment
  • Six Consumer Stocks Paying Sustainable Dividends to Own in 2011 [View article]
    Haha even better, thanks for the disclosure :)
    Jan 14, 2011. 07:51 PM | Likes Like |Link to Comment
  • Six Consumer Stocks Paying Sustainable Dividends to Own in 2011 [View article]
    Poortorich,

    Generally agree with your points, and no doubt about struggles in some international markets (read this article I wrote about the subject on gurufocus.com: www.gurufocus.com/news.... With that being said, you are right about retail; giants have rose and fallen in the past, and there is no saying never about future problems.

    It is always nice discussing investment ideas with you as well. Even when we might disagree, a respectful conversation and friendly tone make the talks enjoyable and meaningful. Thank you.

    Alex Morris
    Jan 14, 2011. 05:07 PM | 3 Likes Like |Link to Comment
  • Six Consumer Stocks Paying Sustainable Dividends to Own in 2011 [View article]
    poortorich,

    Thank you for the response. I completely agree with you on their moat ("relentless pursuit of low cost"). However, in regards to your comment: "Its human nature that once you attain a certain amount of wealth, you tend to buy high end things bc they are perceived to be more "valuable" or bc you want to keep up with the Jones." That is a very broad comment, and hardly encompasses all consumers.

    Regardless, the issue is for naught: "This is balancing act wmt must deal with". As long as they keep prices lower than competitors, this really isn't even a concern; there are (and will be) plenty of consumers across the globe looking to buy the necessities for as inexpensively as possible; there is no indication that this should/will change.

    Alex Morris
    Jan 14, 2011. 12:58 PM | Likes Like |Link to Comment
  • Procter & Gamble's Market Share Strategy Set to Pay Off [View article]
    Interesting look at PG and their strategy, thank you.
    Jan 13, 2011. 10:07 PM | Likes Like |Link to Comment
  • Costco Management Uses the Weather Excuse - Four Years in a Row [View article]
    Unfortunately for BJ's, they have to compete with Costco the other 11 months of the year as well.

    Alex Morris
    Jan 13, 2011. 03:58 PM | 1 Like Like |Link to Comment
  • Whitney Tilson Covers GameStop Short [View article]
    By the way, have you heard of Game Group PLC (GMG.L)? They are the market leader in the UK, Spain, and the Czech Republic; the company is valued just like GME (for disaster). Might be worth taking a look at.

    Alex Morris
    Jan 11, 2011. 12:21 PM | Likes Like |Link to Comment
COMMENTS STATS
687 Comments
726 Likes