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Long term price target of $34 Originally published on 3/31/25 in The Millegan Memo https://www.woodworth.fund/news/the-millegan-memo-march-2025 KOHL’S HARD CASH: DIGGING UP VALUE IN $KSS Kohl’s continues to drop despite a relatively rosy reported earnings and balance sheet. In what appears to be an overreaction to broader uncertainties in the US economy, consumer sentiment, and possibly disappointing performance of certain internal segments, Kohl’s has declined over 30% since it reported earnings earlier this month.

Bull BBW is set to renegotiate leases over time. Favorably updated rent agreements, new off-mall locations, and productivity gains from the White Barn format conversion could help boost profits.

From Brick-and-Mortar to Digital Ventures A favorite among gamers at one point in its history, GameStop has had a very challenging recent past. The transition towards digital distribution of games and competition from online retailers like Amazon has eaten away at its brick and mortar model.

Bull - Growth in miles driven increases the wear and tear on vehicles, requiring more maintenance and repair work to keep them on the road, benefiting LKQ. LKQ’s collision business could see rising demand from increasing auto claims as more drivers return to the road following the COVID-19 pandemic.

Bull Macy’s owns significant real estate that can be sold to provide liquidity, pay down debt, and finance new investments. The firm intends to raise about $600 million-$750 million from real estate sales over the next three years.

Executive Summary Based on exceptional recent execution and accelerating growth metrics, we revise our 12-month price target for PDD Holdings to $165.00, representing approximately 74% upside from the current price of $94.68. Recent Performance Highlights Q3 2024 demonstrated remarkable acceleration across key metrics: Transaction services revenue surged 72% year-over-year, significantly outpacing expectations Operating profit increased 46% to RMB 24.3 billion with expanding margins Net income growth accelerated to 61% year-over-year Cash position strengthened to $44 billion, providing substantial strategic flexibility Key Growth Catalysts International Expansion: Temu's semi-entrusted model showing stronger-than-anticipated margin improvement Geographic footprint expanded to 70+ countries with robust user acquisition metrics Customer acquisition costs decreased 22% quarter-over-quarter Platform Economics: Take rate expanded to 3.8%, demonstrating pricing power Monthly active users exceeded 900 million in Q4 2024 Merchant retention rate stable at 89% despite take rate increases Risk Assessment Near-term Challenges: EU's VLOP designation may require additional compliance investments Potential changes to U.S. de minimis import rules Intensifying competition in cross-border e-commerce Revised Valuation Analysis Given the acceleration in key metrics, we apply a 10x FY2024E EV/EBITDA multiple (up from 8x), still below high-growth internet peers at 12-15x.

Strong Q1 2024 Performance In Q1 2024, $MNSO revenue surged 26% year-on-year to $515.7 million, with adjusted EBITDA margin expanding by 200 basis points to 25.9%. This growth was fueled by a robust strategy of opening new stores globally.

Coupang Inc. (NYSE: CPNG) is a prominent e-commerce company based in South Korea, often referred to as the "Amazon of South Korea." Sector: Technology Industry: e-commerce, Internet Retail, Consumer Cyclical Market Capitalization: 40.0b (mid cap) Major Competitors: Local Competitors in South Korea Naver: Naver is South Korea's largest search engine and one of the biggest competitors to Coupang in the e-commerce space.

Key Takeaways Amazon’s earnings power is much higher than its reported profits - driven by 3P sellers, Advertising and AWS More growth to come from best-in-class customer experience, cross-selling and industry growth trends Continued reinvestment will suppress short to medium-term cash flows and hide profitability Operating leverage will drive revenue growth higher than fixed cost growth, and operating margins will increase. That growth will come from Online retail (and 3P), Cloud computing and advertising revenues Catalysts Business Catalysts Refocusing On The Core Businesses And Opportunities Will Improve Profitability Andrew Jassy’s 2nd shareholder letter from the 2022 annual report outlined the fact that Amazon is choosing to refocus on the core businesses and opportunities that they have long term conviction in.