Love Stocks

Romans were the consummate romantics or at least lustful.  In their heyday they celebrated fertility with the Lupercalia festival in mid-February.  Ever efficient and democratic in their celebrations, women were reportedly paired off with men through a lottery.  By the Century Five AD, the Roman’s had become sufficiently converted to Christianity to replace the licentious Lupercalia with a feast to honor a martyr named Valentine.  We have a couple choices as to which ‘Val’.  One historical account holds that a priest named Valentine secretly married couples so that the solider-groom could avoid going to war.  Another speaks of a priest-healer named Valentine who commemorated through letters his great devotion to a young woman he helped cure of blindness. 

14th Century Cupid

One way or another Valentine’s Day is associated with love.  Even as commercial interests have co-opted the day, there is has been no erosion in its affectionate underpinnings.  By the 14^th Century artists put the Roman god of love, Cupid, to work as a mascot for Valentine’s Day.  Printed cards started cropping up in the 18^th Century depicting love birds as well as Cupid himself. 

Our modern celebrations encompass the full gamut.  The more adventuresome can reach back all the way to Lupercalia with gifts of intimate wear.  Otherwise romantics can play it safe with gifts of jewelry, flowers and candy.  The holiday can be celebrated by streaming a ‘romcom’ video at home or venturing out to a movie theater and capping off with dinner at a white table cloth restaurant.   

Given the longevity of the Valentine's Day observance, it seems investors should get in the mood too with a clutch of ‘love stocks.’  A few suggestions are shown below.

Company	SYMB	Operations	Mkt Cap	Price	FPE
1-800-Flowers	FLWS	Flower arrangements , delivery	$1.1B	$16.50	23.5x
AMC Entertainment	AMC	Movie theaters	$736M	$7.00	neg
Hershey Company	HSY	Candies, chocolates	$37B	$160.00	25.6x
L Brands, Inc.	LB	Women’s intimate wear	$6.7B	$24.00	11.x
LoveSac Company	LOVE	Furniture, seating	$129M	$11.00	neg
Match Group	MTCH	On-line dating platform	$22.4B	$77.00	30.5x
Netflix	NFLX	Streaming entertainment	$168B	$383.00	45.4x
Ruth’s Hospitality Grp	RUTH	Fine dining restaurants	$624M	$21.00	14.4x
Signet Jewelers	SIG	Diamond jewelry, watches	$1.4B	$26.00	7.4x

   

Neither the author of the Small Cap Strategist web log, Crystal Equity Research nor its affiliates have a beneficial interest in the companies mentioned herein.