Contrarian Value Ideas

[gfp927z]

Derf, >> ULTA <<

As a turnaround candidate, I had initially rejected it since the chart had broken key support. But then the news came that Berkshire had taken a position in ULTA (most likely Weschler, not Buffett), so I decided to get a small position. Sure enough, the 'Berkshire effect' kicked in, and the stock is now back above that broken support level. So far so good, ULTA also has a pretty nice long term chart, which is a plus since it raises the odds of a return to the long term uptrend.

As for the fundamental analysis of the company's numbers and business prospects, I'll defer to Berkshire / Weschler's superior knowledge. Also, articles I've read on the company make it sound like the company's setbacks are temporary. So I figure what the heck, a small position makes sense.



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