Investment idea 新規投資候補 – LB


Hello readers, how’s your weekend? It is Monday in Japan, but today is a national holiday called “Becoming an Adult Day.”


Anyway, as US stock market is to hit all-time high, it is extremely difficult now to find reasonably priced quality stocks. One of the twitter accounts @Kuudiv I follow recently tweeted that finally bought women’s lingerie. At first I had no idea what he had meant, but I figured out he initiated his position in L Brands (LB) which operates Victoria Secret stores. Yes I have known of that brand since I lived in the US and always felt embarrassed whenever I was walking by that store.

Anyway, this is a new discovery and according to Y-Chart, now its dividend yield is at 3.95%, the highest in the last 5 years.


In addition, it paid a special dividend of $2.00 last March. Considering it, its yield is about 7%. Too good to pass. That said, there is a very negative coverage on LB on Forbes.  I understand why this stock has been so much beaten down now by reading this article.

  • Too much dependency on its physical stores. Its online channel accounts for only 20% of the total sales although the millennial customer who primarily shops by mobile and are expected to command 30% of the market by the end of the year.
  • Outdated marketing. Still use blonde, skinny glamazons
  • The size issue for Victoria’s Secret, which only carries a narrow range of sizes in its stores. Between the super skinny models and the limited size selection, the company has signaled to a huge portion of the bra shopping population that they should go elsewhere
  • Sports bras, female athletes certainly don’t turn to Victoria’s Secret first. Plus, the product is competing with giants like Nike and Under Armour who are actively courting the female athlete.

Very convincing and I almost decided to pass on LB. But remember one of the Warren Buffet’s quotes –

“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”

So I am a contrarian and I will initiate a position in LB when my GT90 order is hit.

読者に皆さん、寒い雨の降る祭日ですが、如何お過ごしですか? 米国株も日本株も上昇しすぎており、なかなか投資銘柄が見つかりません。そんな中、フォローしているツイッターアカウントの方がL Brandsという米国の大手女性下着メーカーに投資されたというツイートをされました。米国在住時にモールに行くとVictoria Secretという女性下着の店舗があったのですが、そのブランドを運営する会社のようです。株価は過去1年で30%近く下がっており、どうもセクシー路線がミレニアム世代の女性に敬遠されているようです。一方で配当利回りが4%近くありますので、非常に魅力的な価格付けとなっております。




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