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It's more or less peak risk profile for me. I don't have infinite tendies / bullets to fire with (unfortunately) and am also like over $2mil deep already.
tldr: no. I'm already risked to the tits. $2mil is alot for one yolo for even me.
I asked Gemini to make me a DD on KVUE and I will not trust any DD on this sub anymore. Those pump and dump DD's are written by AI, I'm calling it. Here it is if you want to YOLO your Wendy's money on Tylenol babies (I did, like a good regard) :
**DD: KVUE - Your Boomer Parents' Medicine Cabinet is Printing Cash.**
Current Price: $15.00 (Wait, it's this low? My wife's boyfriend's dog walker has more in their savings.)
Target Price (Uranus): $26.00+ (We're aiming for the 52-week high, because why the fuck not?)
Positions: 1000 shares, 50 17.50 calls for next month, YOLO on the Tylenol hype.
**1. The Setup: The Spin-Off Scapegoat (The "Bear Case" is just J&J's dirty laundry)**
Okay, regards, listen up. KVUE is Kenvue, the boomer-brand consumer health spin-off from J&J. We're talking about the holy trinity of household stability: Tylenol, Neutrogena, and Listerine. These aren't some fly-by-night crypto scam; these are the brands literally in everyone's medicine cabinet, including the one your grandpa uses for his bad back.
The stock has been hammered since the IPO. Why? Because of the dreaded "L-word" (Litigation, not Leaks in your puts). Specifically, the Tylenol/autism lawsuits. The market, being the scared chicken it is, priced in apocalyptic levels of liability. But look closer :
- Science is on KVUE's side. Major health orgs aren't backing the causal link.
- J&J is mostly on the hook for the pre-spin-off mess, and let's be real, J&J is a legal battle tank. KVUE has a defense mechanism built right into its parent company's balance sheet. The fear is overblown, a classic WSB buy signal.
**2. The Golden Goop: Financials that Make My Pants Tingle
Forget speculative tech with negative free cash flow. This is where your money goes to sleep and wakes up fatter.**
- P/E Ratio: Sitting around 20x. For a consumer staple with iconic brands? That's cheap. The sector average is higher than my student loan debt.
- Forward P/E: 14x. Analysts, those boring pencil-pushers, think earnings are going to jump. Translation: The stock is priced for a recession, but it sells stuff people buy during a recession (hello, off-brand Tylenol addiction).
- Gross Margin: 58%. FIFTY-EIGHT PERCENT. That's iPad-level margin on baby shampoo and mouthwash. This company is a printing press disguised as a pharmacy shelf.
**3. The Real DD: The Dividend Drip (This is how you get generational wealth, you fucks)**
This is the secret sauce that separates the men from the meme-boys.
- Dividend Yield: Currently over 5%! A 5% yield on a company that sells painkillers and skincare is basically free money. It's a high-yield savings account that is also a Neutrogena distribution network.
- Dividend Payout: They just announced an 82 cent annualized payout. This is management saying, "We have so much cash, we literally don't know what to do with it, so here, you take it."
When the market finally realizes this staple is undervalued and the Tylenol risk is a media headline pump-and-dump, the money will pour in from two places :
- Value Investors: They'll see the low P/E, the brand power, and the stability.
- Dividend Hunters (The REAL Whales): They will dive-bomb this stock for a >5% yield. They have more money than all of us combined. When they start buying, this thing moves.
**4. Tylenol to Uranus**
We have a stable, cash-generating business trading near its 52-week low ($14.05) with a massively overblown risk priced in and a fat 5%+ dividend. This isn't a complex meme play. This is just a severely mispriced, blue-chip stock on sale.
The play is simple: Buy shares for the dividend and the eventual snap-back to a rational valuation ($20-$23), or buy 17.50-20.00 calls for the absolute chad move. Your parents will be proud that you finally bought something they actually use.
**TL;DR: KVUE = Discounted boomer-brand staples + >5% dividend + lawsuit fear is FUD. BUY AND HOLD. Tylenol gives tendies, not headaches.**
Disclaimer : I am not a financial advisor. I am a degenerate with a crippling options addiction. This is not advice. This is entertainment. I just like the stock.
“I yolo my Wendy’s paychecks on 0dtes to make tendies”
“I run an aggressive portfolio based around concentrating large amounts of capital on short term high volatility assets in order to generate alpha”
“They’re the same fucking thing”
Monkeyed into 300k of ABAT today. Posted a yolo when I entered. Pure vibes - don't plan to hold long term. Pure swing trade. I did no DD -- it just went up & I figured that's gotta be good.
Average entrance \~6.3, 50k shares. Literally 0 conviction, I'll dump at the first sight of red. Up 10% on it so far which is cool. #vibetrading