$CHWY Improvements
Going over some of my holdings to see which, if any, I want to add to. Just realizing now Chewy has seen gross, operating, and net profit margin and free cash flow improvements every year since 2017.

I know active customers slowed dramatically in the recent year but percent of sales via autoship improved to a record, >70% for a full fiscal year for the first time, and net sales per active customer had a massive 15.6% improvement TTM YoY.

They trade at a low trailing and forward P/S for a reason but <1 on forward P/S? I don't know if I can pass that up.

This article from April 2021 on their Net Promoter Score is interesting. I take it with a grain of salt as I don't know the author's motives (besides pushing their proprietary Net Promoter System) but I am one of the Chewy customers who uses them for all my pet needs (3 cats and a big dog), including medicine and autoship. I can confirm their customer service is the best and the prices are very competitive against the likes of Amazon and other pet store brands.

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It definitely seems that $CHWY has fallen from grace recently. I agree that the product and customer service is exceptional, but I think that the competition and limited reach of the business could limit it. I hold $CHWY and plan to for a few more years. I am not planning to add any time soon, though.

@paulcerro and @greencandleit have discussed $CHWY and the pet industry at length - might be worth checking out the podcast episode they did together as well!
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Could Sam Bankman be the next Ryan Cohen?
Recently, FTX CEO Sam Bankman bought a 7.6% stake in $HOOD. FTX is a crypto brokerage platform similar to $COIN.

Being an expert on how exchanges work, it would be interesting to see what Sam Friedman looks to do with Robinhood. Even if his stake in the company may seem insignificant, it's important to note that FTX and Robinhood are indirect competitors. Both offer a crypto brokerage platform to consumers but at the same time, Robinhood offers fewer cryptos for people to trade and gives people a plethora of stocks and options to buy and sell.

The reaction to Sam Bankman's stake in Robinhood was big. The stock rose more than 20% after hours because of it.

In late March, $GME experienced a similar reaction as Ryan Cohen, co-founder of $CHWY, added to his stake in the videogame retailer. Around the same time, $BBBY shares surged as Ryan Cohen took a stake in that company as well.

Ryan Cohen is investing in those retailers because he wants to help fix the operations of those companies. Sam Friedman could be looking to do something similar with Robinhood.

We have yet to see.
A lot going on for a Friday... 54 positions increased/started
Three things going on with my portfolios today.

1) additional stock investments into my Stash portfolio

2) setup of a special REIT portfolio on M1 Finance to benchmark the various Real Estate apps I am evaluating.

3) updated Real Estate Rumble to incorporate the Fat Cat Investing REIT Pie from M1 Finance

1) - Stash Investments (6)

$AEO - $29.09 consensus price target. DCA down from previous buys.
$CHWY - $59.04 consensus price target. DCA down from previous buys.
$COIN - $270.77 consensus price target. DCA down from previous buys.
$HD - $387.95 consensus price target. DCA down from previous buys.
$NFLX - $345.57 consensus price target. DCA down from previous buys.
$WRBY - $37.67 consensus price target. DCA down from previous buys.

2) - M1 Investments (48)

I added a "benchmark" made of 48 REITs pulled from the "Seeking Alpha iREIT Durable Income Portfolio to my Real Estate Rumble Google Doc. Rather than setup a whole new account for this, I added an additional "pie" to one of my M1 portfolios...

I'm not going to list all 48 holdings here but you can see them here - Fat Cat Investing Pie: https://m1.finance/z6spRMse6EOm

3) - Real Estate Rumble

Newly revised "Real Estate Rumble" now tracking Concreit, Landa, Lofty, Fundrise, Groundfloor + Fat Cat Investing M1 REIT pie.

Real Estate Rumble Google Doc - https://bit.ly/3J4U57h

Join me at Fat Cats of Real Estate on Facebook - https://www.facebook.com/groups/447646870455159
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April 2022 Bloodbath - Names Down >30% Since April 1
April 2022 was one of the worst market months of all time. In fact, it was the worst since October 2008. Here are 100 stocks down >30% since April 1:


Visit highsandlows.substack.com
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$TRUP Earnings: What I'm Looking For
$TRUP reports earnings this afternoon. I'm cautiously bullish, having first bought shares in April 2020 at $30.20/sh and having bought shares 3 more times, each at a higher per share price (most recently August 2021 at $93.18. I'm currently up ~43%. All the metrics and KPIs remain strong. However, the average pet acquisition cost (PAC) has increased dramatically.

In 2019, the lifetime value of a pet (LVP) grew 16.5% while average PAC grew 19.4%. 2020 saw LVP grow 24.9% and average PAC grew 22.5%. 2021 was 9.8% and 12.5%. The silver lining is the increased average PAC has thankfully resulted in accelerating growth in total pets enrolled (up 36.4% to 1,176,000 in 2021) and total subscription pets enrolled (up 21.9% to 704,333 in 2021). On top of that, average monthly retention continued to strengthen in 2021, up 3bps over 2020 to 98.74%. Looking back to a more "normal" (non-COVID) year, 2021 was a 16bps increase.

Here's what I'm looking for in today's earnings:

  • Solid growth in LVP, total and total subscription pets enrolled, and average monthly retention while average PAC remains reasonable.
  • >35% revenue growth over Q1'21.
  • They were barely FCF negative in 2021 while previous years were barely positive. I'm not too concerned about barely negative FCF but don't let that become a big negative.
  • Management guidance would be nice along with some updates on how the partnership with $CHWY is going.
Round Trips
There have been a ton of major "round trips" since 2020. These are names that soared higher in 2020 and have come all the way back . Here are a bunch in no particular order:

EDIT: I am calling these the Covid-180's

$FB - Meta Platforms, Inc. - Internet Content & Information - $534.71B

$NFLX - Netflix, Inc. - Entertainment - $92.44B

$SHOP - Shopify Inc. - Software - Application - $61.52B

$SE - Sea Limited - Electronic Gaming & Multimedia - $53.12B

$U - Unity Software Inc. - Software - Application - $24.17B

$SPOT - Spotify Technology S.A. - Internet Content & Information - $23.55B

$RBLX - Roblox Corporation - Electronic Gaming & Multimedia - $19.97B

$CHWY - Chewy, Inc. - Internet Retail - $15.12B

$ROKU - Roku, Inc. - Entertainment - $14.01B

$PINS - Pinterest, Inc. - Internet Content & Information - $13.67B

$CVNA - Carvana Co. - Internet Retail - $13.47B

$PTON - Peloton Interactive, Inc. - Leisure - $6.73B

$MRTX - Mirati Therapeutics, Inc. - Biotechnology - $4.01B

$INMD - InMode Ltd. - Medical Devices - $2.55B

$FVRR - Fiverr International Ltd. - Internet Retail - $2.10B

$CDLX - Cardlytics, Inc. - Internet Content & Information - $1.47B

$NEO - NeoGenomics, Inc. - Diagnostics & Research - $1.41B

$NVTA - Invitae Corporation - Diagnostics & Research - $1.29B

$TREE - LendingTree, Inc. - Mortgage Finance - $1.28B

$SNBR - Sleep Number Corporation - Furnishings, Fixtures & Appliances - $1.11B

$TTCF - Tattooed Chef, Inc. - Packaged Foods - $737.26M
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