Author shares a 40-stock value watchlist and explains which names were culled and why, plus a set of adjacent 'fluffer' stocks used for news monitoring.
RBA — AVOID The author culled RBA from the watchlist despite calling it a great company, because of discomfort with its debt level. The stated mechanism is balance-sheet risk from leverage, which the author is unwilling to accept. No specific debt figure, catalyst or timeframe is given.
RBA: Great company, i am just uncomfortable with the debt
YUMC — AVOID The author dropped Yum China from the watchlist, describing it as a decent company but arguing that country sentiment drives the stock's performance. The stated mechanism is that macro/sentiment toward China, rather than company fundamentals, determines the share price. No catalyst or timeframe is given.
Yum China: Decent company. Country Sentiments decide the performance of the stock
TMO — AVOID The author removed Thermo Fisher Scientific from the watchlist, calling it a good company but citing too many moving parts as the reason. The stated mechanism is complexity making the business harder to understand and track. No catalyst or timeframe is given.
Thermo Fisher Scientific: Good company Too many moving parts.
SYY — AVOID The author culled Sysco from the watchlist, calling it a good company but stating he found something better to replace it. The stated reason is relative opportunity cost rather than a negative view on the business itself. No specific replacement or catalyst is named.
Sysco: Good company, i found something better.
Unpriced research observations (excluded from Calls and Returns):
BN — AVOID The author dropped Birkenstock from the watchlist because management is not retail shareholder friendly and is beholden only to majority shareholder L Catterton. The stated mechanism is governance risk: majority-owner control is seen as unfavorable to minority retail shareholders. No catalyst or timeframe is given. resolved_entity_name_mismatch
Birkenstock: Management is not retail shareholder friendly and only beholden to L Catterton, their majority shareholder.