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Andrés's avatar

Very good couple of articles of $FOXF

It seems that I am a much more by the numbers investor than you.

I have qualitative dealbreakers, but I can give an opportunity to a new management if the numbers add up, maybe I have a more pragmatic approach.

Have you looked again at this name after the huge tumble it took after the last earning release?

Given your more qualitative approach I would assume that the Marucci acquisition is another dealbreaker and i concede that it's a very strange mixture with the rest of their operations. But the company has solid margins and it's a CODI name as FOXF itself.

I am not a stockholder, but I am starting to see value even under conservative assumptions.

Would be great to get your take with the new added information.

Thanks!

Moonlight Capital's avatar

Hi Andres! You're right in your analysis that I tend to take a more of a qualitative approach and that the most recent Marucci acquisition was the factor that made me completely remove Fox from even being a candidate for my watchlist. However, that's also a personal preference, where I tend to not be a big fan of highly acquisitive companies.

I believe the company's biggest strength to be their Fox brand, and if they're going to be acquiring other brands left and right like they did Marucci, I feel like their future becomes very uncertain. But like I mentioned in my conclusion, I wouldn't be surprised if the company went on to deliver outstanding results a few years down the road, but I personally wouldn't feel comfortable owning this company today.

Hope that helps clear things up!

Andrés's avatar

Thanks!

Ketan's avatar

Thanks for a brilliant deep dive!

Moonlight Capital's avatar

Thank you for taking the time to read it.🙏🏻 Glad you found it helpful!