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Feb 18, 2026
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NEUTRAL
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"The stock has gone from 11 times earnings... to 19 times now. And we just decided to move some of that into other names." The stock has re-rated significantly. While the business may be fine, the risk/reward profile is less attractive at 19x PE compared to the entry at 11x, necessitating a trim to fund better-valued ideas. Taking profits / Rotating capital. Consumer spending remains stronger than expected, driving further multiple expansion. |
CNBC
Trade Tracker: Karen Firestone details her la...
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Feb 18, 2026
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LONG
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"S&P down 25% with this wave of hitting software companies... They are the rating giant particularly in fixed income. And that's where we're having a lot of debt selling right now." The market indiscriminately sold SPGI as a "software" stock. However, its core business is credit ratings, which is currently booming due to high corporate debt issuance volumes. This disconnect offers a discount on a high-quality compounder. Buying the dip on mispricing. A sudden freeze in credit markets or debt issuance. |
CNBC
Trade Tracker: Karen Firestone details her la...
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Feb 18, 2026
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LONG
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"It went as high as 40 times earnings on the wave of sustainability... stock's come down... We believe that they can grow their earnings 11% roughly per year." The "ESG premium" that pushed the stock to 40x has evaporated, providing an attractive entry point. As the largest water utility, it offers reliable double-digit earnings growth and a dividend yield, now at a reasonable valuation. Value entry into a defensive compounder. Regulatory caps on utility rates or rising interest rates impacting yield attractiveness. |
CNBC
Trade Tracker: Karen Firestone details her la...
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Feb 18, 2026
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LONG
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"Business of pumps, valves and seals... aftermarket. They provide to the chemical industry oil and gas power generation." This is a play on the "old economy" industrial base. As energy, chemical, and power generation sectors expand or maintain infrastructure, the demand for engineering aftermarket parts (recurring revenue) increases. Cyclical / Industrial growth play. Global industrial slowdown or recession reducing capex in energy/chemicals. |
CNBC
Trade Tracker: Karen Firestone details her la...
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