Why Did I Just Buy Some Toast and FIGS?
I spent this past weekend going over the hundreds of companies reporting earnings this week. It's an interesting exercise, stumbling across names that once interested me but that I never acted upon. It's a reminder to check up on them after they report. It's also an opportunity to buy them before they report if I conclude that the bullish thesis and valuation are stronger than before.
After kicking in with my due diligence I found a pair of stocks that I would initiate positions in on Monday. When I told my wife later on Monday that I had just bought some Toast (NYSE: TOST) and FIGS (NYSE: FIGS), I got a funny look. Oh. No. I wasn't prepping for some trendy brunch. I just think that restaurant tech darling Toast and fashionable scrubs distributor FIGS have attractive price points heading into their financial updates.
As of Wednesday's close it seems like a diet of Toast and FIGS has caused me indigestion, with my positions down 5% and 11%, respectively. Both stocks will move even more -- up or down -- on Friday after they report. They are both broken IPOs from the class of 2021, but I think they have the potential to bounce back. Let's check out why I think this is a winning recipe.
Source Fool.com
