Two Boys Capital

Finding stocks that go up. Occasionally down. But mostly up. Been around long enough to have seen a bear market.

[Two Boys Capital @TwoBoysCapital]

@marcelolima Maybe because 10%, for that level of risk, is going to be seen as pretty good, given current market valuations.

[Two Boys Capital @TwoBoysCapital]

@DeepSailCapital $RELL high growth, profitable, tons of operating leverage. In all the best areas - green energy, elec trains, EVs, semi-cap equipment, HC. Decentralized operating units. Diverse global business. Pristine B/S. Owner-operator. Small cap with zero coverage = yet to be discovered.

[Two Boys Capital @TwoBoysCapital]

@DesatCap BAC, TFC, USB, GS, MS all have floating-rate (3mo LIBOR+spread) prefs, w/3.5-4.0% floors. Current yields ~7.5-9%.

[Two Boys Capital @TwoBoysCapital]

@chongusu @conorsen nailed it. crisis over.
https://t.co/1HA0hYyPMK

[Two Boys Capital @TwoBoysCapital]

@chongusu @conorsen Fed should lend against UST&MBS in the sec portfolio, at par value. Term matched to duration of collateral. No re-mark on rest of book and no hit to capital. That collateral has no credit risk, so lend fully, freely, (and quickly). Bagehot would be proud.

[Two Boys Capital @TwoBoysCapital]

@BarnabasDull @cullenroche FYI - You're comparing a rate of change to an index value. You can't determine a spread from this.

[Two Boys Capital @TwoBoysCapital]

@rationalwalk @RudyHavenstein “…the law…can restrain the heartless”. Without law, SBF is enabled to do what he did. But lawlessness enables the pitchfork crowd too! Do the powerful recognize that? Is it a calculated bet eventually crapped out? Maybe SBF should think twice before strolling down the street

[Two Boys Capital @TwoBoysCapital]

@rationalwalk @elonmusk Inflating SG&A to disguise monopolistic profits is better than allowing the pols to see the full potential profit margin and risking regulation actually having some teeth.

[Two Boys Capital @TwoBoysCapital]

@rationalwalk Thought about COST while reading KO call, where mgt points out in recession smaller $ basket outweighs total value prop. COST is ultimate total value play for consumer, but requires higher initial outlay. That dynamic could hurt COST during recession, but may be buy opp for stock

[Two Boys Capital @TwoBoysCapital]

@SirBaby6 @BondHack Amazing thread. Bravo. 👏

[Two Boys Capital @TwoBoysCapital]

@rationalwalk Why not repeal fee and raise prices 2%? Or repeal, keep prices flat, and make up on vol from incremental customers? I think Costco understands it’s a behavioral issue. A fee creates attachment, affiliation, etc., the value of which (to Costco) greatly exceeds face value of fee.

[Two Boys Capital @TwoBoysCapital]

@rationalwalk Pro-tip: find friend without membership, but with a car. They drive you, and in exchange piggyback on your membership for that day - “Hey, you want to take me to Costco?” Works everytime.

[Two Boys Capital @TwoBoysCapital]

@lamgabejambo @rationalwalk This. 💯

[Two Boys Capital @TwoBoysCapital]

@rationalwalk For folks who can’t do the margin math, COST makes “paying for itself” visible for Exec members w/year-end rebate. 2% back on what you spent in previous year. If Exec spends $6K annually, you earn whole membership back. >$3K annually makes Exec cheaper than Gold Star. Easy to hit

[Two Boys Capital @TwoBoysCapital]

@conorsen Disagree on the lack of introspection. I think Dimon is candidly acknowledging things will deteriorate (you highlighted that in above tweet). But JPM is prepared as can be. FWIW, Scharf basically took identical stance, i.e. looks good today, won't last, but don't know timing:

[Two Boys Capital @TwoBoysCapital]

@rationalwalk Given original motivation is for an investment view, be sure to experience from perspective of shopper for a family of 4-5, then the value will truly be undeniable. Price compare basket of goods against any other retailer, you'll see membership pays for itself in 2-3 visits tops

[Two Boys Capital @TwoBoysCapital]

@MikeTannenbaum @BillBrewsterTBB Can you elaborate?

[Two Boys Capital @TwoBoysCapital]

@NCarolinaTrader It's not in the transcript here, but i swear on the call y'day he said they have those three, but then "and we now have *17* different owners of GE wind turbines..." NEE is likely the biggest, but still, to add another 5-10 will move the needle.

[Two Boys Capital @TwoBoysCapital]

@NCarolinaTrader I hear you on that, I guess my thinking is that it is the operators - next era, enel, etc. that matter, not GE. And the utilities are flush, with budgets and mandates set by regulators.