Note: I have added a new video Quick Start Guide to Cabot Turnaround Letter, in which I take you on a guided video tour through the various features of this service, including issues, updates, alerts and where to email me with questions. Newer subscribers in particular may find it helpful. You can find the Quick Start Guide in the right rail of the Cabot Turnaround Letter main screen.
Ammo Inc (POWW) beat on revenue of $40.42M but its EPS of $0.01 per share missed expectations by $0.03. The company experienced sequential revenue growth in the ammunition segment and maintained robust margins in the GunBroker marketplace, but total revenues and gross profit margin were both down year-on-year, influenced by a shift in sales mix and macroeconomic pressures. The year ended with substantial operational cash flow and an improved net working capital position including $55.6M in cash, positioning the company for future growth.
Friday, June 14, 2024, Subscribers-Only Podcast:
Covering recent news and analysis for our portfolio companies and other topics relevant to value/contrarian investors.
Today’s podcast is about 6 minutes long and covers:
- Initial note
- Introduction – some thoughts on AMMO Inc’s earnings and today’s SCOTUS ruling.
- Comments on recommended companies
- Kopin (KOPN) recently announced changes to the Board of Directors. CEO Michael Murray will now also assume the Chairperson role, and Margaret Seif, former Chief Legal Officer for Analog Devices (ADI) was elected as a new director.
- Polaris (PII) launched its electric off-road vehicle charging network in Michigan’s Upper Peninsula, just under a year after the company received a Mobility Public-Private Partnership & Programming (MP4) grant through the Michigan Office of Future Mobility & Electrification’s (OFME) program.
- VF Corp (VFC) President Bracken Darrell acquired more than 75,000 shares ($997,000) and director Richard Carucci acquired 25,000 shares (~$350,000) of the apparel manufacturer on the open market. Darrell also bought $1M worth of stock in February, and Carucci took in $760,000 of shares last August.
- Barnes (B) Aerospace and RTX’s Pratt & Whitney Canada announced a long-term extension of a repair services agreement during the recent MRO Americas show in Chicago.
- Vodafone (VOD) reportedly plans to sell its entire $2.3 billion stake in India’s Indus Towers through stock market block deals next week in an effort to pay down debt.
- Volkswagen (VWAGY) teamed up with solar panel installer Otovo to begin selling solar panels alongside electric car chargers in a move it says will cut costs for drivers by two fifths.
Please know that while I don’t yet personally own shares of all Cabot Turnaround Letter recommended stocks – including the stocks mentioned in this note – that will materially change over time.
Please feel free to share your ideas and suggestions for the podcast and the letter with an email to either me at mwarder@cabotwealth.com or to our friendly customer support team at support@cabotwealth.com. Due to the time and space limits we may not be able to cover every topic, but we will work to cover as much as possible or respond by email.
Portfolio
| Market Cap | Recommendation | Symbol | Rec. Issue | Price at Rec. | Current Price * | Current Yield | Rating and Price Target |
| Small cap | Gannett Company | GCI | Aug 2017 | 9.22 | $ 4.37 | - | Buy (9) |
| Small cap | Duluth Holdings | DLTH | Feb 2020 | 8.68 | $ 3.59 | - | Buy (20) |
| Small cap | Dril-Quip | DRQ | May 2021 | 28.28 | $ 17.56 | - | Buy (44) |
| Small cap | Kopin Corp | KOPN | Aug 2023 | 2.03 | $ 0.72 | - | Buy (5) |
| Small cap | Ammo, Inc. | POWW | Oct 2023 | 1.99 | $ 1.91 | - | Buy (3.50) |
| Mid cap | Mattel | MAT | May 2015 | 28.43 | $ 17.07 | - | Buy (38) |
| Mid cap | Adient plc | ADNT | Oct 2018 | 39.77 | $ 25.23 | - | Buy (55) |
| Mid cap | Xerox Holdings | XRX | Dec 2020 | 21.91 | $ 13.45 | 7.4% | Buy (33) |
| Mid cap | Viatris | VTRS | Feb 2021 | 17.43 | $ 10.19 | 4.7% | Buy (26) |
| Mid cap | TreeHouse Foods | THS | Oct 2021 | 39.43 | $ 35.08 | - | Buy (60) |
| Mid cap | The Western Union Co. | WU | Dec 2021 | 16.40 | $ 11.99 | 7.8% | Buy (25) |
| Mid cap | Brookfield Reinsurance | BNRE | Jan 2022 | 61.32 | $ 40.42 | 0.8% | Buy (93) |
| Mid cap | Polaris | PII | Feb 2022 | 105.78 | $ 76.65 | 3.4% | Buy (160) |
| Mid cap | Goodyear Tire & Rubber | GT | Mar 2022 | 16.01 | $ 11.47 | - | Buy (24.50) |
| Mid cap | Janus Henderson Group | JHG | Jun 2022 | 27.17 | $ 32.54 | 4.8% | Buy (67) |
| Mid cap | Six Flags Entertainment | SIX | Dec 2022 | 22.60 | $ 28.85 | - | Buy (35) |
| Mid cap | Kohl’s Corporation | KSS | Mar 2023 | 32.43 | $ 21.95 | 9.1% | Buy (50) |
| Mid cap | Frontier Group Holdings | ULCC | Apr 2023 | 9.49 | $ 5.09 | - | Buy (15) |
| Mid cap | Advance Auto Parts | AAP | Sep 2023 | 64.08 | $ 61.23 | 1.6% | Buy (98) |
| Mid cap | Mohawk Industries | MHK | Jan 2024 | 103.11 | $ 111.35 | - | Buy (165) |
| Mid cap | VF Corporation | VFC | Mar 2024 | 16.24 | $ 13.69 | 2.6% | Buy (25) |
| Mid cap | Barnes Group | B | Apr 2024 | 36.55 | $ 38.52 | 1.6% | Buy (55) |
| Mid cap | First Quantum Minerals | FM | Apr 2024 | 15.93 | $ 16.39 | 1.6% | Buy (40) |
| Mid cap | United States Steel | X | Jun 2024 | 37.12 | $ 36.37 | 0.5% | Buy (55) |
| Large cap | General Electric | GE | Jul 2007 | 304.96 | $ 155.41 | 0.2% | Buy (160) |
| Large cap | Nokia Corporation | NOK | Mar 2015 | 8.02 | $ 3.61 | 3.4% | Buy (12) |
| Large cap | Macy’s | M | Jul 2016 | 33.61 | $ 18.55 | 3.4% | Buy (25) |
| Large cap | Newell Brands | NWL | Jun 2018 | 24.78 | $ 6.92 | 3.4% | Buy (39) |
| Large cap | Vodafone Group plc | VOD | Dec 2018 | 21.24 | $ 8.68 | 11.8% | Buy (32) |
| Large cap | Berkshire Hathaway | BRK.B | Apr 2020 | 183.18 | $ 405.39 | - | HOLD |
| Large cap | Wells Fargo & Company | WFC | Jun 2020 | 27.22 | $ 57.28 | 2.4% | HOLD (64) |
| Large cap | Western Digital Corporation | WDC | Oct 2020 | 38.47 | $ 77.56 | - | HOLD (78) |
| Large cap | Elanco Animal Health | ELAN | Apr 2021 | 27.85 | $ 18.08 | - | Buy (44) |
| Large cap | Walgreens Boots Alliance | WBA | Aug 2021 | 46.53 | $ 15.37 | 6.5% | Buy (70) |
| Large cap | Volkswagen AG | VWAGY | Aug 2022 | 19.76 | $ 11.96 | 7.7% | Buy (70) |
| Large cap | Warner Bros Discovery | WBD | Sep 2022 | 13.13 | $ 7.29 | - | Buy (20) |
| Large cap | Capital One Financial | COF | Nov 2022 | 96.25 | $ 134.07 | 1.8% | HOLD (150) |
| Large cap | Bayer AG | BAYRY | Feb 2023 | 15.41 | $ 7.24 | 7.5% | Buy (24) |
| Large cap | Tyson Foods | TSN | Jun 2023 | 52.01 | $ 54.00 | 3.6% | Buy (78) |
| Large cap | Agnico Eagle Mines | AEM | Nov 2023 | 49.80 | $ 63.81 | 2.3% | Buy (75) |
| Large cap | Fidelity Natl Info Services | FIS | Dec 2023 | 55.50 | $ 75.66 | 2.7% | Buy (85) |
| Large cap | Baxter International | BAX | Feb 2024 | 38.79 | $ 33.56 | 3.3% | Buy (60) |
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