1. $LEGH Learning the Mobile Home Business (and Finding Value Along the Way)

"At my entry point, around book value, Legacy’s valuation looked reasonable. The stock now trades at roughly 11 times earnings, 1.1 times book, and 27 times free cash flow. It’s not a screaming bargain, but if the company continues earning a mid-teens return on assets, buying near book value should produce long-term returns above the market average. The company doesn’t pay a dividend, but it has repurchased about $6.5 million in stock , which is nice but isn’t moving the needle much."

Enterprising Investor

Legacy Housing is a micro cap manufacturer of mobile homes, an interesting play on the housing shortage

Read

2. Sprouts Farmers Market (SFM)

"We believe the stock offers good value current levels (about $105 per share). If the current negative momentum, the stock may fall further and give us a rare opportunity to buy more stock at a big discount to the current intrinsic value. We will continue to hold on to our existing position and look to add if the stock fall further towards $90 per share."

Long-term Investing

Company Update We wrote about Sprouts Farmers Market Inc (SFM) on 1 st Oct 2024. This was an “Initiating Coverage” type note and can be found here . We wrote a subsequent note on the November 14 2024 which can be found here. Summary of the company Sprouts Farmers Market, Inc. is a food retailer. It was founded in 1943 and is headquartered in Phoenix, Arizona. The company started as a single market stall. SFM offers fresh, natural and organic food./p>

Read

3. Painful 20% drop for Molina Healthcare (again). My stock buy of the week

"Summary Molina Healthcare (MOH) dropped 20% Thursday Disappointing earnings, for sure But the market knew things were grim Defensive value story still intact Just ask Berkshire Read on. UnitedHealth (UNH), Centene (CNC), Elevance (ELV), and Molina. And how Buffett swooped in and snatched UNH after the big sell-off."

Sherwood Investment Letter

Read