Anyone here follow CASY? I’m perplexed.
Reviewing my stocks, CASY stands out. Through all the troubles with brexit fears, CASY has consistently gone up. I’m not arguing, but I am paying attention.
Recent sales growth looks promising but not spectacular. Bottom line earnings are decent but not amazing. Margins are great and improving but that mostly just makes up for dropping revenue.
Looking at this, I’m not seeing any clear logical reason for the price increase these past 2+ weeks.
Am I misunderstanding something? Our is this a whim of the market?
I’m not looking to get out, but I am wondering if I should decrease my position size…
Thoughts?
First, CASY is a good company posting very solid results with very good same store sales and good growth opportunities as they expand in a southeastern direction where there are lots of small towns in which they thrive.
Second, CASY has zero foreign exposure. For that matter, they don’t have exposure beyond Midwestern USA currently.
Just my take.
A.J.
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Second, CASY has zero foreign exposure. For that matter, they don’t have exposure beyond Midwestern USA currently.
I agree completely, AJ. Not too many places you can get a growing company at a decent price with no exposure to China, Europe, or the strong dollar.
Matt
Long CASY
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or it could be that Goldman Sachs moved it from neutral to buy and added it to their conviction buy list and changing their pt from 123 to 145. that was on 6-29 and it’s been climbing since. may just be momentum now.
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Thank you all!
Seems I underestimated the “no foreign exposure” aspect. Still … has me wondering if it is now riding on pure momentum.
Casy has looked strong but there are others in my portfolio hitting 52 week or all time highs right now including:
Mazor
Abiomed
Ceva
Netease (which has an amazing 10 year chart - Denny you would love this one)
http://finance.yahoo.com/echarts?s=NTES+Interactive#{“showEma”:true,“emaColors”:“#ff0000,#009999”,“emaPeriods”:“50,200”,“emaWidths”:“1,1”,“emaGhosting”:“0,0”,“range”:“10y”,“allowChartStacking”:true})
Paycom and LGIH are a whisker away from their high and Alibaba and MobilEye have also seen their stock 50EMAs cross their 200EMAs.
In short yes there are very good specific reasons why Casy has done well. Healthcare REITs have also done very well but plenty in the Saul sphere have been riding the wave to the current market heights. The question is will we go higher or is this the top…
For those that are interested in the possibilities of top vs no top:-
http://www.onlypricesmatter.com/2016/06/25/contradictions-do…
http://seekingalpha.com/instablog/428250-michael-clark/48977…
http://seekingalpha.com/article/3987129-jobs-uh-oh-s-and-p-5…
Eitherway - Friday was astonishing and yes I know the market loves job report day but to see 90% green in the portfolio and a 2.34% US portfolio gain vs the indices ~1.5% was more than reassuring.
Ant
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Another addition - Five below hit a 52 week high on Friday.
Ant
Saul:
1. No exposure to Britain or Europe
2. No FX markdown of revenue or profit because of the strong dollar post-Brexit.
3. Strong dollar means that petroleum will be cheaper in dollars. Cheap petroleum is good for Casey
4 Port in a storm
Thinking more on this, Casey’s recent performance is a good lesson in “economic diversification”.
I am used to thinking of diversification in terms of geography, market sector, number of investments, types of investments, etc. But the world economy is becoming so interconnected it is worth considering also investing in ways that give exposure to diverse economic regions.
This is a good argument to me to staying invested in CASY (minimal impact to the company by foreign news other than oil). I’ll have to keep an eye out as I travel for great local companies that wouldn’t be effected by what happens in the USA …
Last reason: They held up well during the Great Recession. May not grow as fast as some stocks but see it as a stabilizer in my portfoiio.
Jille
long CASY