The Depth Report – The Wrath of Grapes

Last week Deep Knowledge Investing Food, Restaurant, and Spirits Advisor, Howard Freedland, was asked to speak to The Society of the Four Arts, in Palm Beach, Florida, about the impact of current and projected tariffs on old-world wines. While we normally focus on actionable stock ideas and timely market commentary, Howard is a 20-year veteran … Read more

The Depth Report – Novel Coronavirus and Travel Stocks

Overview: Last week we wrote about the 2019 novel coronavirus (2019-nCoV). The disease is spreading and may have changed, and we thought it was time for an update. There is speculation that the virus has mutated into a more transmittable form, but it’s unclear right now whether the virus has, or whether doctors are getting … Read more

The Depth Report – A Detailed Examination of Royal Caribbean’s Free Cash Flow

Last month, we posted a detailed writeup on Royal Caribbean Cruises Ltd (Ticker: RCL) on SumZero. That writeup was then published in Barron’s under the title:Royal Caribbean Stock Can Gain Nearly 40%: Portfolio Manager. In both cases, readers chimed in with concerns about the free cash flow at the company. One pointed to the increase … Read more

The Depth Report-Carnival Says 40% Off-Is Cruise Pricing Sinking?

On November 1st, 2019, Princess Cruises, which is owned by Carnival Corporation & Plc (ticker: CCL) announced a 55th anniversary sale which included onboard spending money, room upgrades, a wine & dine package, and airfare credits for specific sailings. There’s nothing unusual about this. Like all leisure, gaming, and hotel companies, cruise lines regularly introduce … Read more

Royal Caribbean (RCL) – Long – Writeup

The Depth Report Royal Caribbean Cruises Ltd. (RCL) Overview: Royal Caribbean owns and operates cruise ships under several brands including Royal Caribbean, Celebrity, and Silver Seas. We first started looking at the cruise lines around 2 years ago because we saw the industry was undergoing a transition. Over the last 2 decades, cruise ship capacity … Read more

Bras, Bralettes, Barron’s, and a Big Dividend Problem

Last week, we published a piece on SumZero recommending a short position in L Brands (LB), the company that owns Victoria’s Secret and Bath & Body Works. The key point is that there is a fashion trend away from the complicated underwire bras sold by Victoria’s Secret for $50 – $60, and towards more casual … Read more

Short Case on L Brands – Published March 2017

L Brands (LB) Overview: L Brands (ticker LB) is the owner and operator of Victoria’s Secret and Bath & Body Works. Other businesses account for less than 5% of revenue and no operating profit so will not be addressed here. Victoria’s Secret is now about 60% of the $13B US lingerie industry. Bath & Body … Read more