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No. of Recommendations: 4
Got a Peter Lynch special that sorta falls in the BIG/DG Venn Diagram:
OLLI
It’ has a nice high P/E, higher growth, funny name, some passionate consumers. It’d be a chapter in one of his books if he wrote it this decade.


I looked at OLLI a few weeks back, and there was a giant red flag that kept me from going any further. To me, DSI is like a blood pressure reading for a retailer. And I don't think it's stretching the analogy too far to say that any number over 90 is very concerning. OLLI comes in at 135 days, which is huge. As a basis of comparison, here are some DSI numbers (latest FY) for OLLI plus a grab bag of other retailers:


TJX: 57
ROST: 58
TGT: 62
DLTR: 77
DG: 79
FIVE: 79
BIG: 108
OLLI: 135


My approach (for retailers and everyone else) is to try to identify companies which are cheap relative to their prospects over the next 5 to 10 years. I'm not trying to idenfify things like easy comparisons for the upcoming year or other catalysts that might help the stock price over the next year or two. That does work for many people, of course, but it doesn't work for me - possibly due to inherent laziness but more likely due to my inherent limitations. In any event, while OLLI may be a good investment right now, I think that if you're going to buy it you need to explain why that DSI number isn't a symptom of underlying issues in the business model.
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