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Today’s Trade Could Earn You 3267% – and Has No Dermatological Side Effects (WSC)

Posted on September 1, 2022

It’s a company almost no one’s heard of…

In perhaps the least sexy business on the planet…

Whose product is… get this –

Well… not THAT kind of space, exactly.

Rather, WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) leases portable work spaces, containers and other storage-unit-what-nots to schools, businesses, construction companies and governments in need of quick, deliverable ‘space’ solutions.

Got That?

They’re not in the Elon Musk interstellar-travel space.

They’re also not on our buy list.

Why?

Well, we believe WSC has finished its bully dance – for the time being – and we also believe we can sop up a 3267% return via a delicately-administered, risk-defined options strategy that guarantees to leave you neither blind nor epidermally scarred.

That’s right.

It’s safe and effective.

——————————————-

Fundamentals on the stock are overdone, as far as we’re concerned.

This is not Pfizer-like criminality, nor Tesla hype.

It’s manufacturing and good, old-fashioned selling.

So when we see numbers like these, we gotta grin and shake our heads.

To wit –

  • P/E is a lofty 34.28, though analysts see that contracting to just 23.38 a year from now. All things being equal, that would entail either a contraction in price by A THIRD, or a doubling of earnings in the next twelve months.  Take your pick…
  • The stock offers no Yield,
  • Has a Price/ Book ratio of 5.06 (way too generous),
  • Trades at 759.74x cash (!), and…
  • Debt/Equity is out of kilter at 1.71.
  • Finally, insiders dumped $25 million in stock over the last six months (10.56% of their stake), of which $20 million was offloaded in just the last two weeks.

You gettin’ the picture?

Now the chart –

And the G-d of Israel will avenge His people.

Many happy returns!

Matt McAbby

 

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