Rent the Runway $RENT is benefiting massively from the inflation crisis
That's what the CEO of Rent the Runway said, according to CNBC.

In the article, the CEO of Rent the Runway noted that the company is benefiting from a strong rental environment as customers seek stability and value during these times.

At the same time, management noted that they will increase the price of their membership plans as a way to help offset their own rising costs.

With more consumers spending on experiences and less on things, the environment is highly favorable towards Rent the Runway, a company that makes money by renting out nice outfits. Plus, the business correlates strongly with consumer spending on experiences.

With profitability as their main goal during this time, I feel confident that the company will reach profitability sooner than we realize.
What a cool business model! Has inflation impacted their business in any negative ways though? I would imagine cost of clothing is rising as well and that would increase their expenses
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SBC is a scam to adj. EBITDA and you're getting diluted
Stock-based compensation (SBC_ has gotten out of control with some companies that utilize the line item top boost adj. EBITDA for profitability but can also dilute you.

Prime example is $TWTR. Market Cap >1.5x since IPO while price only up ~2% in the same time

The link below shows this weeks "Chart of the Week" for the following names

The numbers are quite shocking. If you're interested in receiving content like this, hit the subscribe button (it's free!).

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CGC Q1'22 Quarterly Letter - Can you relate?
Cedar Grove Capital released its Q1'22 letter last week and wanted to share it with you all here.

While the quarter was a challenging one, we ended the quarter with 18% in cash and are strategically positioned to continue the rest of the year deploying dry powder in opportunistic areas.

Our holdings are included below - would love anyone's thoughts on them if they have any to share.



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Cedar Grove Capital Q1'22 Investor Letter
Hi all,

For anyone interested, Cedar Grove Capital will be releasing its first investor letter next week for Q1'22.

This letter will encompass our holdings, position sizing, returns, my thoughts for the portfolio going forward and select commentary for certain positions.

Click the link below to subscribe and get it when it comes out.

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For new investors to Commonstock - read below!
Good afternoon!

For those of you that just joined Commonstock or followed me, welcome!

A little about me, I run a L/S US equities portfolio, called Cedar Grove Capital based out of NYC, focused on the consumer(tech) and cannabis industries.

I'd highly recommend you check it out 👉🏼

What you get when you subscribe to our newsletter:
  • Weekly-ish Chart of the Week emails where I break down a chart into a few summarized key points to help inform you or keep you up to date on certain topics (ex. How Much is Each "Subscriber" Worth?)
  • Deep dive analysis into an industry that has significant growth potential (ex. Vertical Farming: Don’t Sleep on this Opportunity)
  • Trend I’m Watching which dives into a trend that peeks my interest enough to look into companies that can either benefit or be hurt by such trend (ex. Coffee Prices Getting Squeezed)
  • 1-2 monthly deep dives into a stock I either have a position in or am considering taking a position in. These posts are not short (avg. word count ~3,000), and include many aspects including interviews with users, product reviews, and my model output for valuations (ex. FIGS: Not the lululemon of Healthcare )
  • Personal Thoughts where I express my opinions about a certain topic related to finance, the stock market, or investing. (ex. Uh, Tesla is Worth How Much Now?)
  • Full transparency of my portfolio so you can track my performance and weighting within my portfolio. This can be used, to an extent, to help formulate your own portfolio management.
  • Quarterly updates on my portfolio that highlight my buys and sells, if any, as well as fund commentary and thoughts going forward.
  • BONUS: All my posts will be accompanied by an audio option (2022 onwards). For any reason you cannot read the posts, I’ll record a ‘read aloud’ of the same article so you can listen.

Companies that I've publicly published research on are below:

Companies that I've held/hold positions in but did not provide public research are below:

  • $BRCC - Black Rifle Coffee Co
  • $DPZ - Domino's
  • $ORLY - O'Reilly Automotive
  • $RENT - Rent the Runway
  • $FXLV - F45 Fitness
  • $WRBY - Warby Parker
  • $ELF - e.l.f Beauty
  • $AQUA - Evoqua Water Tech

If you're interested in getting detailed coverage of the space, deep dives into single names and industries all while accompanied by an audio version, I highly recommend you click below and sign up for the newsletter. It's completely free! 👉🏼 Newsletter + Website
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A unique metric reveals past euphoria in the market
Chart of the week is here!

I talk about a unique metric and what's been going on with a few names in the consumer(tech) sector $BARK $CHWY $RENT $WW $HIMS $APRN

Take a look at the pic below but click through to see key takeaways and another chart. 👇🏼👇🏼

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