Summary Points: A private equity acquisition of both GNC and Vitamin Shoppe makes more sense than buying GNC alone. The deal will leave private equity with more upside and result in a premium that GNC/VSI investors will accept. The deterioration in GNC financials increases the difficult of getting the deal done. VSI is an alternative way to get exposure to any … [Read more...]
Archives for March 2017
Watch Abercrombie As Potential Upside Is Significant
Summary Points: ANF pop was short-lived as new team still has a lot of work ahead of it. While Abercrombie brand continues to disappoint, Hollister is a bright spot. New CEO comes from Hollister so hopefully she can push the company in the right direction. Operating expenses need to be brought down further. Stock attractiveness stems from the dividend which … [Read more...]
Invest In Citigroup For Its Size And Reach
Summary Points: Capital adequacy and NIM is decent however Citigroup's returns are behind its peers. Using regression we can calculate a multiple based on banks' returns. The calculations show that there is upside when compared to both North American and global banks. Investors interested in adding exposure to the sector should consider Citigroup. Valuing banks is … [Read more...]
