Supreme Industries – STS

Stock Talk

Jeff Wiume

Jeff Wiume

I bought a position in STS when you recommended it @+/-$12.50. Months later you instructed membership to sell, which I did. At the time you mentioned you'd try and find time to revisit the stock in the future. Well, I'm glad I followed your advice, I sold my position and STS fell back to my initial entry position. So…. I bought my position back as I really like the business they are in. Back in at $12.00 I latter sold at $19.00 for a second time. Pretty happy with the name, but it seems to be consolidating in that $19.00 – $20.00 range. Have you ever found time to look at the name again??

Linda McDonough

Linda McDonough

Dear Jeff,
Congratulations on the nice trade! By the time I got a good look at Supreme, the stock had run too much to buy it. Right now it’s trading at with a P/E of 16 on earnings growth of 11%. I think earnings estimates are a little too low but would look to buy the stock around the $15 level. I really like the management, they are very straightforward and the company is a good operator.
Best,
Linda

John

John

morning linda

Im reading up on FRED and the news is that options markets have a Jul21st $22.56 CALL . I own the stock and it looks like theres a lot of upside sentiment that I would attribute to the Walgreens / Rite Aid deal. Your thoughts on the possibilities for us getting in on this play ?

Thanks

John

Linda McDonough

Linda McDonough

John,
Thanks for the idea. I don’t know Fred’s outside of knowing that they might purchase some of the Rite Aids that WAG can’t purchase. I’ll take a look!
Best,
Linda

Jeff Wiume

Jeff Wiume

Linda, in your coverage universe, are you following any Artificial Intellegence names or anything in robotics??

Going long with STS again – thanks

Linda McDonough

Linda McDonough

Jeff,
Thanks for the question. I’ve been looking for some names in both of these sectors as I am a big believer huge demand exists for these products. The problem I have is that many of the names are not profitable and/or trading at sky-high valuations. That’s not to say they won’t continue to go higher but I am pretty disciplined that I do not like to recommend stocks when I cannot justify a higher future value (with numbers, not hope!). I have a few on a watch list and am hoping for a sell-off in the group to provide a better entry point.
If you have any names you think look interesting please feel free to post here and I’ll take a look!
Best,
Linda

Santo

Santo

NVDA, AMD, XLNX are the spade sellers in the AI Gold Rush.

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