Special Situationship

When the stars align with distribution and scale.

“Content is King, but distribution is God.”

— Philo

This note is about a name that I have followed for years — and it’s been through a lot.

The stock caused big losses when it moved from a fast grower to a just-getting-by slow grower. During this time, it has reigned in costs aggressively, turned its losses into profits and continues to grow while investing in the business.

The demand for its products is in secular expansion with the whole space approaching the legendary hockey stick moment.

The event that piqued our interest is that it recently graduated to a special situation.

This is how companies work — like all things, they never stay in the same phase of life forever.

Read Life Cycles are Life from the Philoinvestor Library here.

Special Situationship 🤝

One with a unique angle that gives us the chance for a very high payoff while limiting our downside.

Note that the last time I played this same unique angle on a stock, that stock went on a generational run that still makes people cry when they think about it.

Don’t expect a bottomless deep dive for this one — some times the best trades come in less than 1,500 words.