CWH: At Your Service, Exploring Camping World's $8-$12B Service Revenue Opportunity; RV Dealer Survey Feedback

Camping World investors remain overly obsessed with new RV sales at a time when the company's growth prospects are increasingly tethered to high margin revenue sources such as service, rentals, camping...

AYI: Downplaying Price Increases When You’re a Supply Chain Disruption Winner

“So some of the backlog will have different impacts of the price increase. So we had our first price increase announced in March, which was impacting late in the fourth quarter, very, very little, and we saw some of that realization...

AYI: Lighting Agent Survey - How Long Can Pricing Hold Up?

EXPI/RLGY: Real Estate Wars - The “White Hot” Housing Market Has Masked a RACE to the Bottom Among Residential Real...

The race to the bottom in broker economics.

PRDO: Borrower Defense to Repayment Claims Could Imperil PRDO’s Cash Balances; What About ATGE?

“The most common types of conduct that might make a borrower eligible for loan relief through borrower defense to repayment discharge are misrepresentations of the truth made by the school or its representatives...

EXPI: As Good as It Will Ever Get? EXPI is the Poster Child for the Bubble in Real Estate Agents

               “For the Indians, one run on, let’s see, one hit? That’s all we got? One g—damn hit?” Harry Doyle....

CWH: A Simple Sanity Check Suggests the EBITDA Floor Is Higher Than You Think

For those who think they’re really good at playing this game, we present you the following question: A year ago consensus estimates for FY21 EBITDA for CWH were $293MM.  By tomorrow, we expect consensus EBITDA estimates for CWH for...

TREX: What is “Normal”? Coming to Grips with Reality at Trex

“Normal is the wrong name often used for average” Henry S. Haskins On TREX’s 2Q21 earnings conference call there were TWELVE references to “normal”, “normalization”, or “normalized”. ...

TRUP: Problems, Problems, Problems….. And Then There’s New Jersey

“Easy, compadre. I'm your friend out here, all right?... If you want to throw down, fine. I've got Jack Johnson and Tom O'Leary waiting for you…… Well, guess what? Now this is...

TRUP: Another Challenging M&A Comp for Trupanion

Over the past 2-3 years there have been two landmark M&A transactions in the pet insurance space.  First, SYF acquired Pets Best in March 2019 for roughly $80MM. No more than a month later, specialty insurance player WTM purchased Embrace for $73MM. ...

EXPI: Slowing Agent Productivity Gains Are the First (of Many) Red Flags in a White Hot Housing Market; Let the...

Well that was quite the round trip.  No one rings the bell when valuation compression starts, or for that matter when it stops. EXPI shareholders and their agents (one in the same in this case),...

CWH: Breaking Through the Ceiling Creates a New Floor; Raising Estimates

For the past 6-9 months, every single one of our conversations around CWH revolved around a single question: When will demand collapse?  Put this in the category of “every general fights the last war”.  Even after crushing...

CWH: The Inventory Advantage, Raising Target to $75, PAA Research's Spring 2021 RV Dealer Survey

TRUP: When Will the COVID-19 Tailwinds End for TRUP? Other Key Questions Heading into the Company’s 1Q21 Earnings...

What changed? We posed the same question to start 2021 following a year in which TRUP shares rallied more than 230%, despite the company’s continued struggles to grow profitably.  TRUP...

AYI: When Mix Shift Is Your Gross Margin Expansion Story

“Given our current gross profit margin improvement, we think that we can achieve the gross profit of above 42% for the balance of the fiscal year.” Karen Holcom, Senior VP and CFO, Acuity Brands, Inc. 3/31/21. 2Q21 Earnings Conf. Call For...

EXPI: As Good As It Will Ever Get? Now EXPI Faces the Struggle of Trying to Become a Real Brokerage Firm

“I think, even starting in early 2020, we really backed off the top line number of 10% gross margin for core brokerage, just because as we learned more about how all this mixes together, it would be tough to...

OSTK: When Striving for Greatness, Never Bury the Lead

Two weeks ago OSTK shares traded north of $110/share.  OSTK shares have declined (-35%) in just 10-trading days.  This begs one simple question: what the hell happened?  First and foremost, if you’re a longtime follower of OSTK this type of...

TREX: Wood Pulp and Polyethylene Boards Don’t Grow to the Sky

TREX has an $11B+ market cap.  In a market full of excess, this singular data point has us shaking our heads day after day.  After all TREX manufactures composite decking from wood pulp and recycled plastic.  Based on the deluge of...

TRUP: What Changed? Certainly Not TRUP’s Profitability Prospects; Marketing IRR’s Could Collapse in 2021

What changed? That is the one question that has been plaguing us (and many other short sellers) about TRUP for the past 12-months.  What elements of TRUP’s business improved over the past year to...

PRDO: From the Frying Pan to the Fire – New 90/10 Proposal Represents an Existential Threat to PRDO, Is This...

“We have implemented various measures intended to reduce the percentage of our institution's cash basis revenue attributable to Title IV Program funds, including AIU’s deferred...