I put $17,000 in this Stock Today! Why?

by birtanpublished on August 25, 2020

Well guys here today i just put seventeen a thousand dollars into a stock that i like very very much let's put it that way okay as i told you guys in the video i released what a day or two ago

I basically said in that video there's about five to ten value stocks out there that i absolutely love right now okay not gross stocks i'm talking value stocks either turnaround plays or

Stocks that have been heavily beaten down and aren't like super popular stocks that are known out there by everybody but are the valuations are just too

Dang compelling and guess what this stock is one of those stocks i mentioned in that video okay and i would say this i would say it was almost i almost want to call this stock

An easy money stock i won't go as far as to say that okay because that is a very illustrious category when i say something's an easy money stock i almost put this one in that category but it didn't quite make it okay

By the way you know two stocks have ever made it to the easy money category okay apple stock obviously back when it was 100 something dollars a share i did a whole video and i literally called apple and easy money

Stock like in the title that video that was like two and a half years ago or so and then the fb i always called that an easy money stock and you know to this day still fb's and easy money stock long

Term okay but those are only two stocks i've ever given that term easy money stock to this one almost made it but i didn't quite make it okay which means this is a very attractive roi

Opportunity if it almost made that category okay so in this video here today i'm going to tell you exactly what this stock is i'm going to tell you what price i paid well i actually got to show you what price i

Paid for these shares here today i'm going to show you exactly how many shares i own in total at the moment with this stock how many shares i plan to own worth this stock

Prices i want to buy for this stock and lastly we'll go through the real meat of this video which is my bullish thesis in detail about this stock so you guys can learn a lot not just about my perspective on this stock

But exactly how i you know look into stock and kind of how my thought process goes around a stock like this so i hope you guys enjoyed today's video as always if you don't mind smash that thumbs up button i do appreciate each and every

One of you guys that always smash that thumbs up that helps out the youtube channel in a massive massive way so i do appreciate you guys and also if you're looking to scale your stock market portfolio to six

Figures seven figures and beyond go ahead and check out the first link in the description down there they'll allow you to fill out an application if your application's accepted you'll actually be able to get on a phone call with

Somebody high up from my team about possibly joining the private group now i think we are booked up for all of august i believe i've had several people message me about that so you will have to book for september if

You are able to actually book a call with somebody okay alrighty guys let's get into this so what stock is this it is foot locker stock okay ticker symbol fl and oh my goodness am i excited

About this stock this is an under 30 dollar stock here today okay foot locker i mean a lot of you guys know foot locker right you know you go in a foot locker store and you usually buy well you could buy

Clothes but most people go in there to buy a new pair of shoes of some kind that's where a lot of people go to shop for shoes okay they also own kids foot locker they own champ sports they own foot

Action as well and they owned several online brands such as eastbay.com runner's point sidestep shoes and they actually just made a huge investment last year in an

App called goat which some of you guys might know is a very popular reselling app for shoes okay now what price do i pay for these shares how many shares do i own at the moment prices i'm looking to continue to buy at

And then we'll get to my bullish thesis after that okay so here today i bought 300 shares at 29 17.50 and i bought another 285 shares at 29 17 14. okay the order was put in all at once it just went under two

Different prices and uh so that was over seventeen thousand dollars here today i bought worth a foot locker stock that is those shares in that particular account there 585 shares got a 2917

Cost basis there so i'll break even obviously just bought it here before the close then i also own some more shares another account another 615 shares the one i got a really nice cost basis

Huh okay 25.80 like that one's i love love love that cost basis especially uh so that one we're already up two thousand dollars on and then i own foot locker shares in another account 560 shares

That one we're down one percent on that's i think in the dividends only account i believe or is that in the public account i can't remember it's in one of those accounts and that one cost base is 29.48 so that

One's the most expensive cost basis of the bunch so all in total we own over 50 000 worth of foot locker shares as of right now okay i think i could buy at least another 50

Dollars worth of this stock especially if the stock doesn't move here over the next few months and when i say move i mean go up like you know twenty percent or thirty percent or

Forty percent or something like that so as long as it stays anywhere remotely close to where i've bought this shares at previously like i could easily buy another 50 000 worth of stock

And i exceptionally love this stock when it's under 30 a share okay that's when it's like you know that's when i almost can put it into the easy money category like i said i can't quite

Go that far with it but it's pretty dang close okay when you can get shares of the stock for under 30 a share and let me be very clear 30 to 35 dollars for the stock is still very attractive to me that is still

Buying territory for me in regards to foot locker stock anywhere from the 30 to 35 level even 35 to 40. i'll say that that's when it becomes like it's a good roi opportunity

Whereas like under 30 in my opinion it's like an unbelievably attractive roi opportunity like the chance you lose money in this stock over the next five years i think very low the chance you make

Really good money in the stock over the next five years i think really high i think if i'm buying anywhere from 30 to 35 dollars i think it's still extremely extremely attractive roi opportunity when we get to 35 to 40 i

Feel like it's a good it's a good roi opportunity but it's not a great roi opportunity at that moment for me and if it goes above 40 a share that's when i'm not interested in buying

Anymore at that point i'm just interested in holding my shares if it goes over 40 okay because then it's just like i would just call it a so-so roi opportunity if i'm buying shares at

Let's say 42 45 48 something like that it's just a hold for me at that point okay now what is my bullish thesis why am i so excited about this stock and i've got to be really excited about it right to

Own over fifty thousand dollars worth of it already and be willing to buy another fifty thousand dollars plus make this into a six figure position i have to really like the stock okay so

What is it about this stock well where i wanna start with this one is it's a three billion dollar mark cap okay that's what i'm paying for this entire company here today

Three billion dollars okay let's go ahead and pull up the last three years of the income statement okay and keep in mind this is a business over the last three years has made a ton of investments

In the business and kind of focusing their business more on online in-store pickups and just kind of like the new age of retail okay and not just being so focused on just like a mall based retailer

But focus on like a store that it can thrive in any type of space okay and they've done a lot of investments over the last few years and still been able to put up very nice numbers 7.7 billion dollars of revenue three years

Ago two years ago 7.9 billion this past year over 8 billion dollars of revenue look at the net income 284 million then 541 million this past year almost a half a billion

Dollars in net income on that bottom line and remember something very important we are paying three billion dollars total for this company okay so at a let's say a half a billion dollar

Net income we're paying a six a six pe on this business model okay that is unbelievably low i mean especially in this market i mean that's just ridiculous this is why you know when i look at

Things like this this is why i can almost put the stock into an easy money category because the valuation is just so cut down and so with the valuation being so cut down you would think foot locker's business model

Would be trash right now and the truth is it can't be further from the trash okay this business model is clicking on all cylinders right now they just reported earnings three days ago

And wall street slept on this completely okay which is absolutely preposterous and ridiculous look at these earnings they were shockingly good okay second quarter comp

Store sales increased 18.6 now you might think well maybe that's a quarter over quarter number no that's year over year okay think about that for a moment in this type of environment where stores were

Even you know a lot of stores for them were partially closed and when they did reopen people were scared about you know could they get roney rona if they went out in the public and things like that and to still put up a comp store sale

Number of 18.6 guys that is ridiculously good like i knew the business model was a lot stronger than what wall street was giving it credit for

But i had no clue it was that unbelievably strong like think about that a year ago everything was perfect in the world right and this year everything's not perfect and to report an

18.6 percent calm store sales number ridiculous anybody that knows anything about retail or restaurants knows that number is absolutely disgustingly good like ridiculous okay

Second quarter net income came in at 45 million dollars so not only does a company have an amazing com store seals but they're already back to profitability isn't that amazing how fast this

Business went from you know their stores are all closed they're taking a huge loss to also now they're already on a gap basis back to profitability on non-gaap basis they reported net

Income of 75 million or 71 cents a share unbelievable numbers guys i mean you you can't ask for better numbers in this type of environment the board of directors declared a dividend so they're going to

Start paying dividends already i thought it wasn't going to be until 2021 when they started you know paying dividends again and that was one of the reasons i was bullish in the stock i was like oh the 2021 they'll start paying

Dividends again that's going to be a great thing start getting that dividend cash flow again no they're already going to start paying them out again okay because they're already profitable very nicely

Profitable already unbelievable i mean just unbelievable then on the conference call they said something like online sales were up like a hundred and seventy three percent if i

Recall year over year it was like a 100 something percent i think it was like 173 percent they said on the conference call that is ridiculous okay now keep in mind

With foot locker online sales are a much smaller chunk of their business than obviously selling in physical stores but still for online stores to be that strong online sales like it just

Proves that this management team has done a phenomenal job of building up that business and people taking more seriously not just going into a foot locker store but if they want to order shoes go to

Footlocker.com or any of the other brands that this company owns so that is unbelievable as well and i love love love seeing that okay let's talk about this balance sheet okay now you would have thought with this

Whole roney ronin situation the balance sheet would have gotten far worse for foot locker and i mean far far worse right i mean heck their stores had to be closed they had to take huge losses all these things right

The balance sheet improved year over year and dramatically look at this now now they have 1.37 billion dollars in cash compared to the same quarter last year they had 939

Million so now they have like what 400 million dollars plus more cash this year in this quarter versus last year in the same quarter that is unbelievable okay so you would have thought oh maybe debt went up a ton

Nope long-term debt went down for this company okay by two million dollars unbelievable and you know what else went down their long-term lease obligations went down as well because they're basically

Being able to negotiate with a lot of their landlords let's call them that right in the commercial space for a lot cheaper rents and that's really exciting as well so i mean when you look at this business

Model already back to very nice profitability com store sales up 18 year over year just insane dividend already gonna start being paid back again and keep in mind it's only 15

Cents compared to what they have 43 45 cents of eps right a balance sheet that's stronger actually way stronger year over year this is incredible okay simply

Incredible what about my channel checks you know if i own any type of physical retail or any type of physical business in general i love to do channel checks i go around see the stores how are they busy

Things like that people you know they like to you know some people not most of you guys don't but some people like to laugh at that oh jeremy goes to drives around these stores and to see if they're busy that's

Just ridiculous that doesn't work does it i could tell you this has made me more money than probably anything ever in the history of mankind okay and i can tell you i've been going around doing channel

Checks for at least the last month or two if not longer than that for foot locker and the stores are generally much busier than i remember foot lockers being let's just put that way especially on the

Weekends just yesterday i was at the summerlin location dts okay getting my son a new pair of shoes okay and i could tell you that foot locker was packed i mean

Absolutely jam-packed i mean when i got done in line there was like three or four other parties behind me waiting to pay for their stuff i'm like hmm business looks pretty dang decent this is certainly no

Ghost town situation here and as a common store sales would show you it's definitely not that situation keep in mind online business is growing 100 plus for them so it's not just about people like

Myself going into the physical store and seeing a pair of shoes and be like i want to get those shoes it's about all those people that are buying online right now and getting those shoes delivered to their house okay

So i mean this is just you know i just love it i love it okay and i want to point out something that i've seen it's a big difference you guys remember back in the day 50 cent had that popular song was like

Use a window shop uh looking at stuff you know you can't buy okay my rapping skills might not be on par okay but 50 cent had that window shopper song right and honestly uh you know that's what i used to feel like a lot of people that

If they were going to foot lock or any store i felt like the majority of people were going in as a window shopper rather than buying stuff and i felt like that was just stores in general

And right now i can tell you people are going the store they're buying crap man they're walking out with bags i mean the amount of customers i see walk into a store and then walk out with nothing is a much lower percentage than

I've ever seen pretty much in my life and especially over the last couple years okay if you're going a foot locker you're you're going with an agenda you're probably going

To buy something okay and this is just these stores in general it's a complete different like change i've seen from consumers out there and it's consumers across the board in every single class it's quite

Interesting okay now some people want to say you know it's because of stimulus money now stimulus checks well people are going to spend that some people are saying well it's

Unemployment some people are making more unemployment than they were with their regular jobs and people are saying well it was the mortgage and the rent forbearance and things like that and so there's a lot of different people

Saying a lot of different reasons but i can tell you you know all that's part of it but i think there's also a bigger change in consumer sentiment out there okay the fact is i mean just think about this

For a moment you can't spend money on so many things people are spending money on before right i mean imagine i want to go the vegas golden knights game right imagine and what did that stadium fit 14 16 000 people

All those people paying hundreds of dollars for tickets then they are buying you know all types of stuff while they're at the game and all those different things and they got to pay parking fees and this and

That and all of a sudden it's five six seven hundred dollars they would usually spend and that arena is empty right because no one can go so no one can spend that money there right

And you think about what about the ufc fight that would usually draw you know tens of thousands of people and all those people would spend hundreds or thousands of dollars to be at that ufc fight guess what you can't even do that

Right now i mean imagine concerts all around the united states imagine how big of a business that is you know all i mean that's we're talking that's a business that if you add up

Everything that's directly or indirectly impacted from that it can be tens of billions of dollars right and i mean if you want to go to concert you can't right now there's no such thing as i'm gonna go to the

Big concert tonight and i'm gonna spend 150 per ticket or 300 per ticket or whatever and then buy a bunch no you can't do that right you want to go to the bar with your

Friends you can't do that you can't go spend 100 200 bucks on drinks tonight you can't go on that cruise right you can't go to hawaii you can't do all these things that you would usually do right

You planned out that european trip for the past two years and now you can't go on that european trip the way which you saved you know ten thousand dollars for whatever i mean people just

Have you know money coming out of their pockets right now okay people have this like stack of money that they just can't spend you just can't spend it because a lot of the activities especially anything

That's travel related or experiential related which takes a lot of people's money out of their pockets right they can't even do that right now man so they got this money just burning a

Hole through their pocket and not a lot of people like that they get to spend their money okay i mean think about this for a moment imagine you're you're a home builder right

And you're like you know you help build houses and you're out there in that heat every day building those houses man working your butt off to make some money right i mean you think those guys are just

Going to build those houses and be like no i don't ever want us but no of course they want to go out and spend some money that's a good feeling man you work hard you bust your butt make some money so you can buy something you want to do

Right and that's most people out there right imagine you're my sister right and you're a nurse and you're running around the hospital all day you know helping people out and all

These sorts of things and you make you know money and you make good money right and it's like you know you're this nurse you think you just want to like never spend any money no of course not

You want to spend some money you want to do some online shopping you want to do some retail shopping like it's a good feeling to spend some money or at least most people find a good

Feeling to actually spend some money buy something they want or obviously buy something they need but buy something they want they may not need it okay for you know every one of my buddies

Graham stefan right he's a 1 in 100 case if not less than that right most people don't save every penny that comes in or almost every penny they want to go out there and spend money okay there's some people that actually feel

Bad if they go out there and spend money right that's not most people most people feel they have a good feeling if they go out there and spend money they have a good like psychological feeling going out there

And buying something they want or they need or something like that like oh i just went out and bought this especially you like want related things right and uh so you know people like graham

That's just that's just very few and far between and so this is a group this is just great news for foot locker and then because people got money that's burning a hole through

Their pocket and they want to go out and spend the dang money and so there's not a lot of things you can go and spend money on right now i'll be honest you know retail stores are open restaurants are at like half capacity so

Restaurants it's even hard to spend money on restaurants and like i said travel and all those experiential things that are massive businesses that take a ton of money out of consumers pockets

You just can't do those right now okay you can't go with a club you can't go get some bottle services it's just not it's not happening right now okay and it's not just foot locker i've seen this on a whole gamut of

Different businesses right louis vuitton i mean i go by the louis vuitton store i've never seen as many people shopping and i'm talking legit shopping in a louis vuitton stores i'm seeing now

Like usually if i go by louis vuitton stores here in vegas there's like maybe one or two people in these stores like usually for the most part they're fairly dead okay unless it's a super busy night just on

The strip or something like that but usually these stores are not busy and i can tell you when i go by the louis stores on the strip they're like actually busy especially on like friday

Saturday sundays it's weird it's actually really weird there's like lines to get in and the store is full i'm like what is going on and then you look at louis vuitton earnings and their revenue was up their earnings

Were up everything was up for them it's a it's a weird environment we're in right now i'll be completely honest but it kind of makes sense when you just understand that there's so

Many less things you can spend money on right now hey why not go buy a new pair of shoes at foot lock or a new pair of nike shorts a foot lock or whatever it is okay and that's why i

Think physical retail is actually benefiting huge right now and as well it's online we saw those amazon numbers they were ridiculous right those amazon numbers beat by over 7 billion as well as apple numbers too right

And so yeah i mean i love foot locker stock i love the foot footlocker stock it's not just a short term it's a long term setup of this business how focused they've been on kind of getting this business ready for 2020 to

2030 which i feel like the business model is ready to dominate in 2020 through 2030. i think they put in a lot of work behind the scenes over the last several years way before i've ever been involved

With the stock and i love it and i might also look at 2023 call options for the stock which those call options should come out within the next month or so i would say i mean usually september maybe

October is when those 2023 calls will start coming out or at least they should start coming out and i'll be interested to look at those at like a 35 to 40 strike price and kind of see what those

Are pricing at maybe even like a 32 if they price their 3250 something like that okay and so as far as what do i feel with the stock i feel like i'll get a 2x plus opportunity on the stock price over

The next five years and i also believe i'm gonna get a ton of dividend money paid out to me as well over the next five years every single quarter i think this will be a cash flow machine stock for me

And i think i'll get some very very nice capital appreciation on the stock over the next five years and so definitely check out the video i posted you know a day or two ago on this channel

About basically you know what's going on in the stock market how there's not a lot of opportunities out there with these big growth stocks that are super popular that everybody's already bought into and the funds have already bought

Into but some of these value stocks where no one's looking right now some of these value stocks are where the real opportunities are in the market in my personal opinion

Right now so definitely check out that video there if you guys don't mind smash that thumbs up button as always helps out the youtube channel huge and i do appreciate you and also if you're looking to hopefully

Try to join that private group go ahead and apply and somebody high up for my team will hopefully be able to get on a phone call with you like i said i think we're booked up for august now but you can

Hopefully try to book a call for september if your application goes through thank you for watching and have a great day

you

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