Dear Reader,Hmm. I was wrong about Alibaba earnings last week. The market is concerned about capex intensity and potentially weak return on that capex, selling into a leaked equity raise announced this weekend. China, ‘innit? Given that the company already has $17 billion in net cash, I view this as a credibility-eroding move by management: the leak itself, the decision to sell stock instead of bonds, and the timing in general. I’m not sure what I will do with my position; but more importantly, please don’t expect such updates out of me. Selling is harder than buying, and it’s healthier all around to assume that you’re on your own with the former before you do the latter. Tuesday:Software (INTU, ZM, BOX): No strong opinions at current prices.Electromed: Interesting niche medical device company that the market has consistently underestimated. I’m concerned about potentially limited terminal market size. DMP: Domino’s Asia/Oceania/Europe master franchisee. Not particularly cheap at ~14x forward earnings. I would rather buy the U.K. master franchisee, DOM on the LSE, at ~11.5x. Wednesday:Bath & Body Works: I did some consumer research on Reddit and my main takeaway is that customers of this brand are very weird people. I don’t understand why this company needs to exist. At ~7x forward earnings with a lot of debt it’s priced like a melting ice cube, which seems valid.Abercrombie: Abercrombie has rallied significantly from the lows and is less interesting to me at ~10x forward earnings than other consumer/apparel names reporting this week.Salesforce/Veeva: Again, no strong opinions at current prices on these software names that seem to be in a highly ambiguous place between valuation and market dynamics/positioning.Thursday:EVN: Austrian utility. Mostly gave up on this name a while back due to plans to invest heavily in low ROIC wind power.Hormel: At ~15x forward earnings I think there are better options.Dollar General: They’ve deleveraged significantly over the last 2-3 years. At ~16x forward earnings I kinda’ like it but it’s marginal.Build-a-Bear: I’m long at ~9.5x forward earnings. I’m fairly familiar with this name. I like their strategy. My main concerns are the CEO jumping ship and long-term fans disappointed by product quality trends (according to my Reddit research).ULTA: Too hard for me at ~17x forward earnings. I’ve heard that the business model is kind of outdated due to the rise of influencers doing direct marketing and beauty tutorials. Workday: Too hard at current prices. Seems expensive.GAP: I’m long at ~8x forward earnings with $1 billion net cash. SentinelOne: 100% of this cybersecurity company’s growth has gone to stock-based compensation. No thanks.KeyTronic: This is one of those small caps that is just constantly getting in their own way with a new issue every quarter. With manufacturing facilities in Mexico they should be crushing it but constantly chose the worst customers possible. Could have a lot of upside if they stop sucking, but looks like it’s headed to bankruptcy.Wildcards:American Eagle: 9x forward earnings with weaker balance sheet than GAP, but it might be the right buy if you believe that the business/brand has been turning around. Regis Corp: Their most prominent brand is Supercuts. This was a popular debt-restructuring special situation a while back. It looks like they’re kind of stuck in the mud, but I haven’t looked deeply.Adaro: Indonesian coal miner that pays huge dividends at ~5x earnings with a strong balance sheet. My analyst said it’s better to pay up for ADMR instead due to better growth prospects. Delta Djakarta: Probably best to ignore this. Microcap beverage shitco in Indonesia.Happy hunting,Scalpavelli