We came across a bullish thesis on Turning Point Brands, Inc. on Emil Hartela Investing’s Substack by Emil. In this article, we will summarize the bulls’ thesis on TPB. Turning Point Brands, Inc.'s share was trading at $98.02 as of September 25th. TPB’s trailing and forward P/E were 35.01 and 24.75 respectively according to Yahoo Finance. Tilray Brands (TLRY) – Tilray Boosts Revenue Mix with New Cannabis, Wellness, and Beverage Products Copyright: nilswey / 123RF Stock Photo TPB Holdings (TPB) occupies ...

Core Insights - Netflix has delivered exceptional returns to investors since its IPO in 2002, with shares increasing by 80,080% as of March 19, resulting in significant wealth accumulation for early investors [1] - The company's current market capitalization exceeds $400 billion, indicating its continued attractiveness for long-term investors [2] Group 1: Business Performance - Netflix generated $39 billion in revenue in 2024, reflecting a 16% year-over-year increase and a 609% rise over the past decade [3] - The subscriber base reached 302 million as of December 31, showing substantial growth from 57 million in 2014 [3] Group 2: Competitive Advantage - Netflix's first-mover advantage has been crucial to its rapid growth, allowing it to outperform traditional cable TV and maintain a leading position in the streaming market [4] - The platform accounted for 8.2% of daily TV viewing time in the U.S. as of February, second only to YouTube, with strong engagement expected from upcoming popular shows [5] Group 3: Profitability and Business Model - Netflix has demonstrated strong profitability, with operating margins increasing from 13% in 2019 to 27% last year, with a target of 29% by 2025 [7] - The company operates a fixed-cost business model, where serving additional users incurs minimal marginal costs, allowing earnings to soar as subscriber numbers and revenue grow [8] Group 4: Future Outlook - Consensus analyst estimates project a compound annual growth rate of 22.6% for diluted earnings per share over the next three years, consistent with past performance [9] - Despite its historical success, Netflix shares are currently trading at a forward price-to-earnings ratio of 38.6, which is considered expensive compared to historical averages [11] Group 5: Investment Considerations - For investors considering Netflix as a path to significant wealth, a long investment horizon and a larger upfront investment are crucial, though past returns may not be repeated [12] - Diversification is emphasized as a key strategy for achieving long-term investment success, rather than relying solely on a single stock [12]