Why Michael Burry Bought Wolverine World Wide 📈 (up 7% today)
I’ve made a lot of money in situations like this:
Insiders aggressively buying their own stock in the open market
A new management team with a bonus plan that creates shareholder value
Rapidly cutting costs and focusing on cash flows
All cash flows used to de-lever the balance sheet and de-risk the operation
Selling underperforming assets to bring in free cash flow and deliver accretive earnings
Huge working capital position that will convert into free cash flow over the next 12 months
This is exactly what Michael Burry sees in this name and the reason why he bought close to $4 million dollars’ worth of the stock.
The stock is attractive. Management is buying the company with their own money. Costs are aggressively getting cut. And the outlook for the company and the free cash flows they generate are forecasted to improve dramatically.
Hope you enjoy our writeup on this stock.
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