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No. of Recommendations: 0
I do not like the container store stock, TCS. I just looked up its data and see that the Price Earnings for TCS is actually 3?

3?


That is interesting.

I don't think TCS has an interesting business. Never been to a TCS, and maybe it's a little like FIVE.

PE of 3? But is it a bargain?

This is a Tom Gardner pet stock. I am curious what TCS is going to do to improve its business. If I were more fancy, I would consider a bear options strategy on it.

Anyone following this one?

Karen
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No. of Recommendations: 3
Hi Karen,

Anyone following this one?

I bought shares and wrote puts last year. Not a happy decision. I keep rolling the puts (which pay well) out in the hope that either the stock turns around or I eventually milk the puts for enough premium that I can close without a loss. Last year I did not need more losses. At the end of this year I might liquidate my TCS position as a tax loss harvest.

Following Pro positions is such a better experience.

phooL on!

Lon.
Pro/Options Fool

long TCS
short TCS 17 April 2015 $25 Puts
short TCS 17 April 2015 $30 Puts
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If I were more fancy, I would consider a bear options strategy on it.

Why? :-) We don't have to make money on every possible opportunity in order to do well and generate meaningful wealth over time.

Neil
No position
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Don't feel bad Lon, you're not alone in that boat. I'm right there with you, and doing the same thing. Except that I've also brought TTS to the party, and there are absolutely no good rolling options, so I'm taking shares tomorrow from my $22.50 Puts. At least TTS is showing some signs of recovery...

Bruce
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No. of Recommendations: 0
I don't really have an opinion about TCS. I do suggest (and I try, in my case) to make decisions, without being anchored on how I got into a position. Obviously I know that timing of realizing gains and losses is important for tax purposes. But I would suggest that if writing put options is a good idea, it is a good idea regardless of when you did or did not buy shares previously.
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No. of Recommendations: 1
Hi Bruce,

Don't feel bad Lon, you're not alone in that boat. I'm right there with you, and doing the same thing. Except that I've also brought TTS to the party

Now I feel bad. :-(

and there are absolutely no good rolling options, so I'm taking shares tomorrow from my $22.50 Puts.

Ouch! Okay, translate that "bad" to commiseration. I'm been rolling TTS puts for quite a while. Not a happy camper, but $22.50 sounds painful. I'm sorry.

phooL on!

Lon.
Pro/Options Home Fool

short TTS 15 May 2015 $12.50 Puts
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No. of Recommendations: 2
Hi Lon,

I'm posting from a hotel room since our neighborhood lost power today. The electric company is working on those who have been without power since Monday.

I think TMF has too close a relationship with Kip Tindall. Yes, he's a nice guy but TMF rec'ed TCS way to close to the IPO pop.

Now all those who bought are waiting for a recovery that may never come.

Regards,

Bob
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Thank you for your commiseration! Fortunately, I am willing to hold TTS until the cows come home. Hopefully they remember where that is... :-)

Bruce
Who observes that $12.50 is a whole lot rosier than $22.50.
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Karen,

I do not like the container store stock, TCS. I just looked up its data and see that the Price Earnings for TCS is actually 3?

What data source are you using? I checked Morningstar, Yahoo, and Google Finance-- they say 34, 34, and 24 (my guess is Google is lagging for whatever reason).

I don't think TCS has an interesting business.

I have been to a few of them and I don't really understand why anyone would want to invest in one. No doubt there is some compelling story that I haven't been paying attention to, but to me it looks like a store that sells boxes. Normally when I want boxes I go to Home Depot or Target. I'm sure TCS has a better selection of boxes, but I'm really not all that picky with my boxes.

Rob
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No. of Recommendations: 3
Hi Bob,

I'm posting from a hotel room since our neighborhood lost power today. The electric company is working on those who have been without power since Monday.

This winter is brutal. I hope you had time to winterize your plumbing before leaving for the hotel. I'm glad you have the comfort of power which implies heat.

I think TMF has too close a relationship with Kip Tindall. Yes, he's a nice guy but TMF rec'ed TCS way to close to the IPO pop.

Now all those who bought are waiting for a recovery that may never come.


I don't think I should comment on the first part, but the second is too likely to be true.

I do have mixed feelings about how The Fool interacts with some CEOs. At last year's FoolFest I got up and walked out during a speech by one CEO (not of a Pro company). There are a limited number of identifiable lies that I can tolerate and he surpassed it. While direct interactions with CEOs can lead to insights regarding investing in their companies, it can also be a PR stunt without substance. Unless the lies are extremely blatant it is hard to know whether you are getting useful information or not.

My bottom line is that I am glad I made the mistake of investing in TCS, TTS, and a few other disasters when I joined One last year. That led me to focus more on how I am making decisions and helped to restore my focus to the Pro and Options services. I love making mistakes that I can learn from and recover from.

phooL on!

Lon.
Pro/Options Home Fool

long TCS
short TCS 17 April 2015 $25 Puts
short TCS 17 April 2015 $30 Puts
short TTS 15 May 2015 $12.50 Puts
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I was looking at the Fool stats!
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I believe that the confusion about the Price/Earnings ratio is because it is a very seasonal company. If you take the last four quarters and add them up, and divide by the current price, you get a P/E of around 3.3.

If you take the most recent quarter and annualize (and use a price orm sometime today), you get a P/E in the mid 30s.

The business really is very seasonal, but that means that if you want to assess their sales based on history, substantially all of their money was made over a year ago (in the quarter ending March 2014). The reason (according to them) is that most of their money is made from the big closet customization work, and that is promoted once per year.

It sounds to me that they are not really a retailer, they are really a purveyor of custom built-in furniture (the shelves and stuff that go in the closets) and they sell a bunch of assorted stuff as a small side business. And, due to their own management practices, they are running a very seasonal business.
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Bob, Rob, Lon and Karen,

I am both a customer and an investor in both TCS and TTS.

I actually was partially assigned on my TTS 22.50 Puts prior to rolling them one month, so I ended up with the shares. With some "buying on the dips" and additional option writing, my position actually turned to green over the past couple of days. I think the basic model of TTS can turnaround as more money goes back into housing (I know when we renovated bathrooms a substantial amount went to TTS). So today, I would say I am both a happy customer, and a hopefully happy investor as the company starts to recover a bit.

For TCS, I am a very happy customer. When we first took possession of our house, the first store we shopped at was TCS to replace the shelving in the pantry and master bedroom. Within two years all the closets were replaced with Elfa. Since then there have been some minor shelving projects in one bedroom and the office, all with Elfa components. Plus the occasional luggage purchase from their travel department. I am lucky that we have a store less than 10 minutes from our home (perhaps that is unlucky). From an investment perspective, this has certainly not gone as well, and like Lon, I will watch this near the end of the year to see what steps to take.

David
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I believe that the confusion about the Price/Earnings ratio is because it is a very seasonal company. If you take the last four quarters and add them up, and divide by the current price, you get a P/E of around 3.3.

I don't know anything about TCS. And, after reading this thread I'll get about as close to it as I would a porcupine unless, of course, Pro decides it's a good short. But, as for the p/e ratio, Value Line reports the last 3 quarters of eps as -.07, .14 and .13 with a projected eps of .30 for the current quarter which ends this month. Add all that up and it won't give you a p/e anywhere close to 3. I think the Fool must have a decimal point out of place.

Just my 2 cents,

Mark
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About 1/2 year after I joined options I wrote puts on TCS. The options I invested in had expired and stock adviser had recommended TCS as the stock of the month twice. Being a Newbie (and idjet) it seemed like an easy opportunity. And I rolled and rolled and rolled until Assinged last month. Now it seems like oil will be back long before TCS will. I like Lon attitude of learning from my mistakes. I'm thinking of waiting to see if TCS turns a bit then write calls. My question; do any if you have a stock repair idea or other on how to approach TCS?
Licking my wounds.
Dan
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No. of Recommendations: 1
Hi Dann7,

in the Options U section of the MF Options is a lesson about stock repair. If you didn't read it so far. Maybe you study it, and may hve additiional questions.

best wishes
J.
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Yep, Lon, pretty much the same situ as you. I let my $25s get assigned, but keep rolling the other two. Having had INFN in my account for 7+ years, I'm used to waiting for companies that I believe have potential to start to gain some traction. I just hope it doesn't take TCS as long as INFN. :-P

Cheers,
Travis

Long TCS $27.50
Short april $30
short july $35
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Lon,

I also sold puts on TCS and have been rolling them ever since. I think I got wrapped up in the hype. I really should have known better, but sometimes you do need to relearn a lesson.

You are right about the puts being profitable, but even the cash doesn't do much when you think 'I should have known better.'

This too shall pass.

Henry
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