This stock has now been picked up by a lot of great investors... but you seem to have been earlier or perhaps first (congrats!). How did you find this stock, if I may ask? And secondly, have you thought of when you might sell? I'm asking because if their TAM is double their current domestic store count, that means we should probably expect growth to continue slowing and the multiple to start shrinking from a growth multiple to a value multiple. Unless of course they find a new way to deploy capital (something significant and proven) but I don't think we have that right now (despite some promising plans related to the gas stations).
I don't remember exactly how I found it, but I did spot the company's potential value in 2020. I think it's a little over 2x in size from now, maybe closer to 3x. I think the company will know how to deploy capital, for example they have created a company to sell gasoline in their stores. International expansion is also possible, they have acquired the main online drugstore in Poland...I have no intention of selling.
Thank you, this is a great overview of the company! Do you have a sense of the margins they generate on meat/deli?
Also, what is your estimate of operating margins of their mature stores vs. the overall ~8% operating margin Dino generates?
This stock has now been picked up by a lot of great investors... but you seem to have been earlier or perhaps first (congrats!). How did you find this stock, if I may ask? And secondly, have you thought of when you might sell? I'm asking because if their TAM is double their current domestic store count, that means we should probably expect growth to continue slowing and the multiple to start shrinking from a growth multiple to a value multiple. Unless of course they find a new way to deploy capital (something significant and proven) but I don't think we have that right now (despite some promising plans related to the gas stations).
I don't remember exactly how I found it, but I did spot the company's potential value in 2020. I think it's a little over 2x in size from now, maybe closer to 3x. I think the company will know how to deploy capital, for example they have created a company to sell gasoline in their stores. International expansion is also possible, they have acquired the main online drugstore in Poland...I have no intention of selling.