Mostly Borrowed Ideas Deep Dives, MBI Deep Dives

MBI Deep Dives

Mostly Borrowed Ideas Deep Dives

MBI is the abbreviation for “Mostly Borrowed Ideas”. Why “Mostly Borrowed Ideas?” As a generalist, I do not have a background in any particular sector. I enjoy navigating across industries, businesses, and countries to learn, understand, and connect the dots. In any case, most ideas and innovations are incremental in nature. Very few of us are smart enough to come up with truly original or groundbreaking ideas. I am Abdullah Al-Rezwan. I was born and brought up in Bangladesh. I went to University of Dhaka for my undergrad and majored in Finance. After working three and half years in Equity Research (Sell-side) covering Financial Sector in Bangladesh, I left Bangladesh to pursue my MBA in the US. I graduated within top 10% of the class from Cornell University's two-year MBA program and worked on the buy-side following my graduation. During my time at Cornell, I won two stock pitch competitions and also became finalists in four other competitions. I thoroughly enjoyed my stint as a generalist in the US large cap team at Madison Investments and covered a wide range of companies from UnitedHealth to Amazon and Boeing before US immigration reality paused my career in investment management. As my work authorization expired, I moved to Canada in January, 2021. Then in early 2022, I was able to return to the US.

Equity Bottom-Up

<ul><li>After Dollar General’s (DG) disastrous earnings couple of weeks ago, I was quite concerned about their prospects in the near-term.</li><li>However, a week later after digesting through Dollar Tree (DLTR) as well as DG management’s explanation in the Goldman Sachs Retailing Conference, I have updated some of my thoughts about DG…in the positive direction.</li><li>Nonetheless, I have decided to abide by my decision not to inject more capital to DG, but to increase my notional exposure to DG via long-dated call options. </li></ul>

After Dollar General’s (DG) disastrous earnings couple of weeks ago, I was quite concerned about their prospects in the near-term.However, a week later after digesting through Dollar Tree (DLTR) as well as DG management’s explanation in the Goldman Sachs Retailing Conference, I have updated some of my thoughts about DG…in the positive direction.Nonetheless, I have decided to abide by my decision not to inject more capital to DG, but to increase my notional exposure to DG via long-dated call options. 

<ul><li>I first wrote my Deep Dive on Dollar General back in August 2023.</li><li>While I wasn't initially excited about owning a piece of the company despite the stock being down 40% from peak then, I changed my mind when the stock went down another ~25% following 2Q'23 earnings.</li><li>After today's dismal earnings, the stock went down almost another 30% since 2Q'23 earnings. </li></ul>

I first wrote my Deep Dive on Dollar General back in August 2023.While I wasn't initially excited about owning a piece of the company despite the stock being down 40% from peak then, I changed my mind when the stock went down another ~25% following 2Q'23 earnings.After today's dismal earnings, the stock went down almost another 30% since 2Q'23 earnings. 

External reports (aggregated public sources), Value Investors Club

Value Investors Club (VIC)

External reports (aggregated public sources)

Value Investors Club

<ul><li>Author may buy or sell securities related to discussed issuer without informing readers</li><li>Information presented is believed to be accurate but not guaranteed in terms of accuracy or completeness</li><li>Author's views are opinion-based and subject to change at any time; readers advised to do their own research and not base investment decisions on the note</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Author may buy or sell securities related to discussed issuer without informing readersInformation presented is believed to be accurate but not guaranteed in terms of accuracy or completenessAuthor's views are opinion-based and subject to change at any time; readers advised to do their own research and not base investment decisions on the noteThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Dollar General Corp (DG) - Wednesday, Apr 17, 2024

Independent Investment Research & Investor, Maverick Equity Research

Maverick Equity Research

Independent Investment Research & Investor

Independent Investment Research & Investor: value, dividend and growth stocks. Risk management & hedging for an all weather portfolio.

Thematic (Sector/Industry)

<ul><li>Zooming out first for a big picture perspective - helpful away from the news &amp; chatter:</li><li>Bears Make Headlines &amp; Lose Money, Bulls Make Money! As always … !</li><li>The bear case sounds very smart very often, only problem is, it’s quite rarely right … !</li></ul>

Zooming out first for a big picture perspective - helpful away from the news &amp; chatter:Bears Make Headlines &amp; Lose Money, Bulls Make Money! As always … !The bear case sounds very smart very often, only problem is, it’s quite rarely right … !

The S&P 500 Report: Performance, Profitability, Sentiment & More - #Ed 5

<ul><li>Dollar General (DG)’s stock had an interesting reaction to today’s earnings.</li><li>First it went up by ~6% in pre-market, but then ended the day 5% down.</li><li>Despite the somewhat bizarre stock price reaction throughout the day, I think the worst days are likely behind DG.</li></ul>

Dollar General (DG)’s stock had an interesting reaction to today’s earnings.First it went up by ~6% in pre-market, but then ended the day 5% down.Despite the somewhat bizarre stock price reaction throughout the day, I think the worst days are likely behind DG.

United States

Dollar General Corporation operates a chain of discount retail stores located primarily in the southern, southwestern, midwestern, and eastern United States. The Company offer a broad selection of merchandise, including consumable products such as food, paper and cleaning products, health, beauty, pet supplies, and non-consumables such as seasonal merchandise.

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Dollar General (DG US)

Some More Thoughts on Dollar General

After Dollar General’s (DG) disastrous earnings couple of weeks ago, I was quite concerned about their prospects in the near-term.

MBI Deep Dives

Dollar General 2Q'24 Update

While I wasn't initially excited about owning a piece of the company despite the stock being down 40% from peak then, I changed my mind when the...

MBI Deep Dives

Dollar General Corp (DG) - Wednesday, Apr 17, 2024

Author's views are opinion-based and subject to change at any time; readers advised to do their own research and not base investment decisions on...

Value Investors Club (VIC)

The S&P 500 Report: Performance, Profitability, Sentiment & More - #Ed 5

Zooming out first for a big picture perspective - helpful away from the news & chatter: Bears Make Headlines & Lose Money, Bulls Make Money! As...

Maverick Equity Research

Dollar General 4Q'23 Update

Dollar General (DG)’s stock had an interesting reaction to today’s earnings. First it went up by ~6% in pre-market, but then ended the day 5% down.

MBI Deep Dives

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