Over reaction or serious concerns for GOOS.TO?

Quick update: less than 2 months later and GOOS has almost recouped all of its post-earnings losses. Did any of you buy the dip? I certainly did and am very happy about it!

In my view it was a complete over-reaction. As Dan pointed out, I averaged down post earnings. This is definitely a buying opportunity. We’ve seen similar drops in other stocks on the bull list only for them to rebound quite nicely. One quarter should not influence one’s investment decisions. Unless of course, there is a doomsday event of some sort.

This will be explained in depth in our newsletter that comes out on the first, but to sum it up in a single word, no. A drop in price of a stock will never change our opinions, as long as the company's fundamentals remain strong.

Canada Goose hasn't missed on analyst expectations since its IPO (in terms of actual earnings and revenue numbers.) The reasoning for the drop was that they guided to 20% revenue and 25% earnings growth, whereas analysts were looking more so towards the 30% mark.

Did this warrant a 30% drop in price? Absolutely not in our opinion. In fact, both Mathieu and I (Daniel) averaged down and purchased more.

The market tends to forget about the 95% of things companies do right, and instead overreacts to the 5% they slip up on. All this leads to is a potentially great opportunity to get in at an even better price.