CSC LT Idea Post 1/9/25

We first want to thank you for your continued loyalty and support. We’re grateful to have you as a subscriber and wish you a healthy, prosperous New Year.

This post is intended to introduce a handful of long-term (LT) idea considerations. As many of you know, stocks that were sold or neglected in the prior year often attract renewed interest as we move into the new year. This dynamic is similar in spirit to the well-known Dogs of the Dow framework, where capital rotates back into out-of-favor names as positioning and sentiment reset.

Some of you have asked why we don’t run this type of exercise more frequently. The answer is simple: last year’s market did not consistently offer attractive entry points for this approach. With the market up roughly 16% on the year, many stocks were already extended, and risk-reward was less compelling for longer-duration positioning. That said, if you’ve followed our prior LT idea presentations, you know they performed very well.

To improve transparency and tracking, we will be adding a dedicated LT tab to the Docs spreadsheet so you can monitor performance over time. Importantly, we will never add an idea to that sheet unless it has first been published here.

For context, here is the performance of the LT ideas we have highlighted to date:

• Cumulative performance: +824% across 15 ideas

• Hit rate: 12 of 15 ideas posted positive gains

• Top performer: $MU at +279%

Performance is shown versus live prices, which means it does not imply we sold at the highs, nor does it imply we are still involved in every position. In fact, we are currently long only three of these names. The goal of these ideas is not constant activity, but identifying high-quality setups with asymmetric long-term potential.

This performance data (below) will be added to the Docs spreadsheet shortly.

Below the paywall, we outline our latest long-term investment considerations.

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