FootLocker $FL – place your bets via /r/wallstreetbets #stocks #wallstreetbets #investing

FootLocker $FL – place your bets

$FL, the brick and mortar retailer of footwear just went down 35% after earnings. The main reason for the drop is due to a change in Nike’s strategy – Nike is lowering its supply of shoes to the retailer in an effort to switch to a direct to consumer supply. This does not mean it is cutting ties completely with FootLocker, but it is lowering its sales and will impact FL in the following months.

Now, you may think this company is dead, but I see opportunity. 35% drop is a crazy overreaction and it looks like easy money on the bounce. Looking to open a position very soon.

Let’s look at some numbers.

$FL Revenue in 2021: 7.55 Bln

Assets: 7 Bln, with 1.7 Bln in cash

… market cap: 2.8 Bln $ … their book value is over their market cap right now.

Finally, they are going to do a stock buyback worth 1.2 Bln. So they will BUYBACK 45 % OF THE CURRENT SHARES OUTSTANDING. THIS ONLY MEANS ONE THING 🚀🚀🚀🚀🚀🚀🚀

I don’t give a shit about this company but this looks like an easy short term trade.

DISCLAIMER: haven’t opened a position yet

Submitted February 25, 2022 at 07:35PM by throw-money-away
via reddit