Jon Quast

I'm talking about its experiences and services.

People stay in a new place, and maybe they'll book an experience on top of that, but half of the experiences now don't have a place attached to it, so they're doing it exclusively for the experience.

That's an interesting trend.

The company investing in that seems to be paying off.

And management's also talked about, hey, we're going to launch a couple new businesses ideas every single year.

This is throwing spaghetti at the wall, for sure.

But it has extra cash on hand, so it can't afford to invest in these new ideas.

You look at the whole thing, it trades at 18 times its free cash flow.

That's a valuation I can get behind.

It's buying back shares, and the share count is coming down.

And it's investing in new opportunities.

And here's the thing, its competitive position does afford

investors the luxury of patience.

If it was being out-competed, if it was burning cash, you wouldn't have the ability to be very patient here.

But because it is so strong, you can be patient while it waits for some of these new ideas to work out.

It's so interesting, Dan, that we're going to experience a change here at CEO.

I'm a little bit worried about a new management team coming in here and overcorrecting, because I really don't think things are as bad as it appears.

I think you have good apparel businesses and bad ones.

Bad ones have piling up inventory, and that leads to markdowns, and it leads to a complete disintegration of its profit margins.

You look at Lululemon, that's not what's happening.