Wolverine World Wide ticks higher amid activist speculation

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Wolverine World Wide ticks higher amid activist speculation

Yes, a takeover of a deeply fallen consumer stock is always possible. But this one has lots of warts: too much inventory, WAY too much debt, and only one or two good brands (Merrill) left. Sold Keds. Sold StrideRite. Saucony is very niche. And real value destruction occurred here as prior management massively overpaid for apparel company “Sweaty Betty.” Terrible allocation of capital! It seems more likely that some longs caught in the name are trying to stir the pot. It reminds me of Gene Munster on a CNBC show a few weeks ago touting PTON as a takeover. Stock rose from about $5.35 to $6.75 from 1/03/2024 to 1/05/2024 all the while I’m thinking “what a bag job!” Quarter came out; stock down; where is the takeover now? (PTON is $4.38 intraday)

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