Calloway’s Nursery is a Texas retailer with 23 locations in the Dallas and Houston areas. Calloway’s offers….well, plants and plant accessories. Roses, hydrangeas, tomato plants, potting soil, and the list goes on. The business itself might sound dull. There’s nothing all that special about peddling flowers. But Calloway’s has a remarkable track record and a bright future.
David, this is a great find. This caught my eye recently when I saw that Peter Lynch had bought this in the past (like 2003 time frame). Not sure if he still owns it but on Edgar's website I found him owning this in the past . here is the link: https://www.sec.gov/Archives/edgar/data/0001137607/000090873703000108/calloway_13ga2.txt. In any case, it is great to see you have a write up on it. I found you via P10 from Richard Sosa's podcast and have really enjoyed your letters. Thanks for sharing your ideas.
David. Great writeup. Thanks. You were expecting 2020 to be a big year when you wrote this. 2021 was even bigger. However last qtr is a bit down. Any updated thoughts on this name?
Have you by any chance asked the company about any other possible future share count increases-convertible preferred and the like? Net income actually was positive for Q3 (which is generally not the case in the garden center business) but the increased share count dropped EPS from Q2. Any idea when/where the "junior preferred" security originated? The company is performing wonderfully and it is fabulous that they send the earnings right out to shareholders, but it would be nice to know how much dilution is possible.
I am surprised that you did not mention the value of the real estate.
One of their Houston locations is in A++ territory.
It was that location that initially prompted me to buy shares way back when for $.75/share. At that point in time, that Houston location was maybe worth the whole of the company?
As the owner of a small, upscale garden center, I can report that sales have continued to be very strong this spring. It seems as if the desire to garden that many cultivated last year has persisted. And now without the uncertainties and difficulties that last spring presented. I would think that Calloway's should have a very strong Q2. This is the one public company I could find that mirrored our own small enterprise- upscale, focused, and service oriented. I invested May 2020 after observing our own surprisingly strong sales trends. The kicker is Klarmin's involvement. He is not going to steal from shareholders. I like that they divy out any cash not required for cautious, prudent investment. Big is not better here. Not the deal that it was but returns should be quite satisfactory as long as the increased interest in gardening and "outdoorscapes" persists.
How can we get access to filings / financial reports? Is this a copy where you need to own a share before they'll send you materials
David, this is a great find. This caught my eye recently when I saw that Peter Lynch had bought this in the past (like 2003 time frame). Not sure if he still owns it but on Edgar's website I found him owning this in the past . here is the link: https://www.sec.gov/Archives/edgar/data/0001137607/000090873703000108/calloway_13ga2.txt. In any case, it is great to see you have a write up on it. I found you via P10 from Richard Sosa's podcast and have really enjoyed your letters. Thanks for sharing your ideas.
David. Great writeup. Thanks. You were expecting 2020 to be a big year when you wrote this. 2021 was even bigger. However last qtr is a bit down. Any updated thoughts on this name?
Have you by any chance asked the company about any other possible future share count increases-convertible preferred and the like? Net income actually was positive for Q3 (which is generally not the case in the garden center business) but the increased share count dropped EPS from Q2. Any idea when/where the "junior preferred" security originated? The company is performing wonderfully and it is fabulous that they send the earnings right out to shareholders, but it would be nice to know how much dilution is possible.
Why is there no SC13D from Kamin? I know Calloways is non reporting but I would think he should file it.
I am surprised that you did not mention the value of the real estate.
One of their Houston locations is in A++ territory.
It was that location that initially prompted me to buy shares way back when for $.75/share. At that point in time, that Houston location was maybe worth the whole of the company?
Is this the same Peter Kamin that previously worked with Jeff Ubben/ValueAct?
As the owner of a small, upscale garden center, I can report that sales have continued to be very strong this spring. It seems as if the desire to garden that many cultivated last year has persisted. And now without the uncertainties and difficulties that last spring presented. I would think that Calloway's should have a very strong Q2. This is the one public company I could find that mirrored our own small enterprise- upscale, focused, and service oriented. I invested May 2020 after observing our own surprisingly strong sales trends. The kicker is Klarmin's involvement. He is not going to steal from shareholders. I like that they divy out any cash not required for cautious, prudent investment. Big is not better here. Not the deal that it was but returns should be quite satisfactory as long as the increased interest in gardening and "outdoorscapes" persists.