Author Topic: EVI - EVI Industries  (Read 4406 times)

Broeb22

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EVI - EVI Industries
« on: November 26, 2019, 06:57:21 AM »


I could have sworn there was a thread on this company, but I couldn't find one. Anyways, ADW Capital is pretty excited about this one.
« Last Edit: November 26, 2019, 10:38:42 AM by Broeb22 »


crastogi

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Re: EVI - EVI Industries
« Reply #1 on: November 26, 2019, 07:58:18 AM »
I am sorry, but that link is not working for me

roark33

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Re: EVI - EVI Industries
« Reply #2 on: November 26, 2019, 08:34:06 AM »
There is a good short write-up on VIC about EVI, have to say, I tend to agree with the shorts on this one.  The valuation on this company just doesn't make any sense to me.  I think ADW and Greenhaven have a cult following of people who invest alongside them without a lot of thought and that drives up the stock prices of the companies they push (which incidentally is probably where a lot of their returns come from), but if you stick around long enough, you find out that the thesis just isn't that solid. 

Broeb22

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Re: EVI - EVI Industries
« Reply #3 on: November 26, 2019, 01:00:19 PM »
There is a good short write-up on VIC about EVI, have to say, I tend to agree with the shorts on this one.  The valuation on this company just doesn't make any sense to me.  I think ADW and Greenhaven have a cult following of people who invest alongside them without a lot of thought and that drives up the stock prices of the companies they push (which incidentally is probably where a lot of their returns come from), but if you stick around long enough, you find out that the thesis just isn't that solid.


This one?

Broeb22

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Re: EVI - EVI Industries
« Reply #4 on: November 26, 2019, 01:25:01 PM »
There is some really challenging 10-K copying and pasting in there, but a lot of it is just unsubstantiated opinion, i.e. EVI CEO says that, I say he's lying.

At the end of the day, do you believe the spending on SG&A is being wasted or not? This guy thinks it is but gives not much objective evidence to support it.

The argument about market size is a good one and a risk I think is real but this guy again provides no data to refute his claim that ADW's 6 billion figure is way too high.

Certainly there are more coherent bear arguments that exist?

saleen998

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Re: EVI - EVI Industries
« Reply #5 on: November 26, 2019, 09:39:01 PM »
There is a good short write-up on VIC about EVI, have to say, I tend to agree with the shorts on this one.  The valuation on this company just doesn't make any sense to me.  I think ADW and Greenhaven have a cult following of people who invest alongside them without a lot of thought and that drives up the stock prices of the companies they push (which incidentally is probably where a lot of their returns come from), but if you stick around long enough, you find out that the thesis just isn't that solid.

I'd have to agree. I think there is a very strong herd mentality among many value investors. In addition to EVI, look at companies like The Joint, Paysign (formerly 3Pea International), and Bluelinx, all of which are recent examples of companies whose stock prices skyrocketed soon after they started appearing in well-known investor letters and VIC articles. Naturally, it appears that these were smart investments before everyone started writing about them. Of course, it may turn out that even after appreciating on the order of 1000% in a short period, they were/are great investments, and doubtless there are very smart people on here who would make that argument. But of course the promotion was a significant factor in the rapid stock price ascension of these companies, and, in my personal opinion, helped cause a sizable group of "value investors" to drive the prices to unreasonably high levels.

BG2008

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Re: EVI - EVI Industries
« Reply #6 on: November 26, 2019, 09:57:45 PM »
You're saying there is a herd of value lemmings?

capitalg

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Re: EVI - EVI Industries
« Reply #7 on: December 03, 2019, 08:10:13 AM »
Interesting that ADW issued a press release with a public link to their presentation, and hosted an "analyst day."  That seems a bit promotional to me, and it also seems odd that a shareholder would host an investor day and not the company.  They make it sound like they are a long term holder, so I'm not sure why they would need to promote the company in the short term.  Maybe they are looking for an exit or near term liquidity?  Stock has been hit quite a bit between yesterday and today, down close to 20% on above average volume no news.

mwtorock

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Re: EVI - EVI Industries
« Reply #8 on: December 03, 2019, 09:24:39 AM »
Interesting that ADW issued a press release with a public link to their presentation, and hosted an "analyst day."  That seems a bit promotional to me, and it also seems odd that a shareholder would host an investor day and not the company.  They make it sound like they are a long term holder, so I'm not sure why they would need to promote the company in the short term.  Maybe they are looking for an exit or near term liquidity?  Stock has been hit quite a bit between yesterday and today, down close to 20% on above average volume no news.

pump and dump?

BG2008

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Re: EVI - EVI Industries
« Reply #9 on: December 03, 2019, 09:38:31 AM »
It's amazing how much EVI ran up in 2018