ELF Beauty as a Turnaround Bet with Limited Holding Period

2 months ago

"Now the second one which I talked about many times is Elf Beauty. ELF is down 40% over the last even two or three days. It was a $120 stock on Wednesday. Now it's at $73 per share. I think it's a good turnaround bet. But I personally would not keep the company more than one to two years after the road acquisition keeps growing then road will peak and then you're going to have to acquire another one and maybe I would not keep it more than two years."

The speaker discusses ELF Beauty's recent price drop and turnaround potential. While acknowledging the short-term improvements driven by acquisitions, he cautions against long-term holding due to concerns over sustainable organic growth, suggesting a holding period of one to two years.

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