Q1Good numbers from an EPS perspective, but it looks like my core thesis remains the same. The core business (ex-Crown) was flat in constant currency. QAU were down again. Profits were juiced from cutting benefits and increasing take.
None of my thesis means that this is a bad investment in any way, shape, or form. Many companies who can’t grow organically, grow by acquisition. However, this requires increasing debt and leveraging the balance sheet, making it a more risky play.
I wouldn’t be surprised if Rafi’s strategy works out and the stock hits $100. All I’m saying is that it’s riskier than it appears.
For the record, I have no position in this stock and I have never shorted a stock in my life. I’m merely watching this company as it is on my radar and would consider investing at some time in the future if they can show strong organic growth.