Two New 'Special Situation' Positions + Sizing Up A Long And Closing Contracts
Portfolio Update #8
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Sizing Up
Last week, we shared our first update on Build-A-Bear (BBW) since our initial post in August 2022 and argued that even after its run, there’s still plenty of gas left in the tank to recognize a great return over the next few years.
After publishing, we were able to size up our position in the company by 30% (on a share basis) and are comfortable with the level of volatility that could be on the horizon.
As you can see by the chart below, the company is not new to the ebbs and flows of the stock concerning earnings (upcoming on December 5th), but over time, BBW is still able to get recognition in the markets and increase in value when given the chance.
This is why we have no problem buying now, especially with the buyback in place and continued growth in the asset-light segments, which we discussed in the original post.
We’ll see how earnings will be but we’re looking to size up the position by another ~30% to have a full position. Letting the winners run on this one.
Closing Contracts
As you may or may not have noticed, Hims and Hers Health (HIMS) had one hell of a week last week both for bulls and bears. If you also received my notifications, you know that I had taken out various contracts on the name leading into earnings as well as at the start of last week. Here is the update on that.