I posted this in another sub and people were saying it’s DD worth mentioning here.
Some of my best trades have come from Chris Camillo’s social arbitrage method. Identifying social trends around you before the street catches on. Despite a 280% gain in the last year, I think there is still room to run in Victoria’s Secret with the release of GTA VI.
Now how could GTA VI possibly relate to Victoria’s Secret? The answer is simple, Lucia’s Thong. In the extended trailer, Lucia is seen wearing a thong that had the little perverts salivating at the image. After extensive research, I identified it as the V-String black thong on Victoria’s Secret website. It’s the same exact product.
On the last earnings call, mgmt has highlighted a majority of their comp sales growth was seen in the “panties” category. I expect panty growth to continue to accelerate through the end of the calendar year. Not to mention VS’ PINK brand has also blow up with double digit sales growth. In the extended release, Lucia’s room is pink as shit. I think VSXY’s sales growth will continue to accelerate as Lucia continues to promote new panties and even toenail paint.
My forward estimates next quarter:
\- V-string sales growth of 44% yoy
\- Panty segment adj EBITDA growth of 56%
The stock is trading at 15x EV/EBITDA. I expect continue re-rating with the adoption of more panties in GTA VI.
Positions
\- 200 shares of VSXY @ $88
\- 8x $100 calls expiring Jan 27.