Warren Buffett's first rule of investing is, "Never lose money"... Rule No. 2 is, "Never forget rule No. 1." Welcome to The Red Flag Alert, a rolling roster of stocks to avoid. When I did short research, the greatest compliment we could get would be from investors who said we kept them out of a stock... or kept them from buying more before it tumbled.
Gee, I kinda like Top Golf .. I'm a non-golfer, I think they call us hackers. It's a great place for work cartharsis - whacking those little white orbs to relieve the job stress. It is fun.
MODG is scaling their Top Golf business with leverage. I mean, if that's a red flag to you then you can see it that way. But it's part of the known strategy since they acquired Top Golf, which is growing EBITDA 36% y/y while the stock trades without any growth premium. And as you mentioned , they will be cash flow positive and leverage will top off. Company has three separate segments so I wonder if this professor's metrics would make more sense if it was applied to each segment separately
The "voting machine" can render the "weighing machine" for extended periods of time....but eventually, the weighing machine takes its measure!
Wonderful piece!
Gee, I kinda like Top Golf .. I'm a non-golfer, I think they call us hackers. It's a great place for work cartharsis - whacking those little white orbs to relieve the job stress. It is fun.
MODG is scaling their Top Golf business with leverage. I mean, if that's a red flag to you then you can see it that way. But it's part of the known strategy since they acquired Top Golf, which is growing EBITDA 36% y/y while the stock trades without any growth premium. And as you mentioned , they will be cash flow positive and leverage will top off. Company has three separate segments so I wonder if this professor's metrics would make more sense if it was applied to each segment separately