Weekend thoughts: Capital allocation and opportunity at $BBBY
yetanothervalueblog.substack.com
One lukewarm take I’ve been thinking about recently: there’s going to be opportunities in meme stocks (or meme adjacent stocks) after their “meme” fades. The thought is kind of simple: meme stocks are so freaking volatile that when they wash out they can wash out really hard to the downside. And, once a stock has that “taint” of meme on it, most professional investors won’t even consider touching it anymore. The combination of extreme volatility and a (possibly) limited buyer pool on the downside creates opportunities.
Weekend thoughts: Capital allocation and opportunity at $BBBY
Weekend thoughts: Capital allocation and…
Weekend thoughts: Capital allocation and opportunity at $BBBY
One lukewarm take I’ve been thinking about recently: there’s going to be opportunities in meme stocks (or meme adjacent stocks) after their “meme” fades. The thought is kind of simple: meme stocks are so freaking volatile that when they wash out they can wash out really hard to the downside. And, once a stock has that “taint” of meme on it, most professional investors won’t even consider touching it anymore. The combination of extreme volatility and a (possibly) limited buyer pool on the downside creates opportunities.