ANF
Abercrombie & Fitch Co.
stock NYSE

I think ADBE is good here. Yes it could drop 50% more, but we're under 10 EV/EBIDTA on a company that's accounting doesn't have major red flags (FCF dislocation, high circular financing). At a 50% drop it's ANF cheap which would be pretty incredible. I think this is a good time to start a position that you can double (cash buy ins, not shares) on two 20% drops. I'm happy entering like that. Position sizing is something I've changed to this kind of a model and it's been working for me. Goes up and I've got an entry level position, goes down and their buybacks provide safety while I buy more. I think 15% long run return territory is where we're at. Either way, good luck out there!

I think ADBE is good here. Yes it could drop 50% more, but we're under 10 EV/EBIDTA on a company that's accounting doesn't have major red flags (FCF dislocation, high circular financing). At a 50% drop it's ANF cheap which would be pretty incredible. I think this is a good time to start a position that you can double (cash buy ins, not shares) on two 20% drops. I'm happy entering like that. Position sizing is something I've changed to this kind of a model and it's been working for me. Goes up and I've got an entry level position, goes down and their buybacks provide safety while I buy more. I think 15% long run return territory is where we're at. Either way, good luck out there!