TROLB - Protect Your Portfolio With Tootsie Rolls

2024-07-25 01:50:56 ET

Summary

• Tootsie Roll survived the 1987 stock market crash, 1990 Gulf War, 2000 Dotcom Bust, 2007-09 Great Recession, 2020 Pandemic, and aggressive 2022 Fed tightening with minimal impact.
• The company's low debt profile, high profit margins, steady operations, and defensive trading characteristics make it an attractive option during market downturns.
• A 10-year low valuation setup is now available, with financial ratios uncommonly trading at par to discount readings vs. S&P 500.
• Upside technical momentum and renewed buying trends have appeared since June, perhaps through capital rotation away from Big Tech.

I started trading in 1986. One of the first major market events in my career was the 1987 stock market crash. So, I am well aware things can go sideways with little notice. An interesting memory of that cataclysmic event is Tootsie Roll Industries ( TR ) survived the -40% drop in the S&P 500 over 8 weeks, as well as any equity name you could have owned. Sure it dipped in October during the worst selling, but price quickly recovered into early 1988....

For further details see: