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Duke Street Trusts – What Are They?

Duke Street Trusts – What Are They?

What are Duke Street Trusts? The answer might surprise you.

The name Duke Street refers to the address of TMF (The Motley Fool) headquarters 2000 Duke St, Alexandria, VA 22314.

TMF has had some great long term holds in the past, like NFLX, AMZN, and PCLN. This round of touting is teasing returns of % 5,000 for a set of “Duke Street Trusts”. But what are they?

For one thing, they are not trusts. They are actually stocks. Stock that have, for the most part, outperformed the S&P 500, some by a lot. They are the collection of long term holds that Motley Fool likes.

So what particular stocks do the Gardner Bros. like in this particular set of Duke Street Trusts?

1. PII (Polaris Industries) looks to be the target.

Polaris Industries Inc. (Polaris) designs, engineers and manufactures off-road vehicles (ORV), including all-terrain vehicles (ATV) and side-by-side vehicles for recreational and utility use, snowmobiles, and on-road vehicles, including motorcycles and small electric vehicles (SEV), together with the related replacement parts, garments and accessories (PG&A). These products are sold through dealers and distributors located in the United States, Canada and Europe. In April 2013, it announced the acquisition of A.M. Holding S.A.S. In April 2013, Polaris Industries Inc acquired Aixam Mega SAS. In November 2013, Polaris Industries Inc acquired Primordial Inc. In April 2014, the Company acquired Kolpin Outdoors Inc.

Currently trading in the low to mid $100s, PII has consistently paid out a dividend since the mid 90s. But it wasn't until 2010 did the stock price go ballistic, and that was even with a 2 for 1 stock split. If you bought this one a couple years back, you would be sitting on some fat (phat?) gains.

Check out the chart below:

PII stock chart

This one is riding near all time highs on both stock price and valuation and looks to be attempting to consolidate in this range. The $150s seems to be the tipping point, and it could be some breakthrough news that sends it back on its trend upward. One thing to watch out for is the acquisition and rejuvenation of the Indian brand to compete with Harley. Here is the RSS feed for PII news.

2. NYSE: TCS (Container Store Group Inc.) is next on radar.

The Container Store Group, Inc. is a specialty retailer of storage and organization products in the United States. The Company is the original storage and organization specialty retailer. The Company operates in two segments: TCS and Elfa. TCS segment consists of its retail stores, ebsite and call center. Elfa segment designs and manufactures component-based shelving and drawer systems that are customizable for any area of the home, including closets, kitchens, offices and garages. In the TCS segment, all of the Company’s merchandise flows through a centralized distribution center prior to transport to its retail stores. The Company’s Coppell, TX distribution center uses a warehouse management system that is designed to optimize distribution operations, from picking and packing to slotting and labor management.

This looks to be a higher risk play, as TCS doesn't seem to be profitable just yet, however, like the “Duke Street Trusts” before it, it could be priced right now to return some very large gains over the long haul. This is a niche company that is already pretty popular, will their chapter in the Duke Street Trust story be a good one?

Take a look at the chart below”

NYSE TCS Stock Chart

TCS is riding at or near all time lows, and with good stocks, now would be the time to buy. On the other hand, the price is depressed for a reason.  Sometimes though, with IPOs, people that held on to pre-IPO shares like to take some of their money back out of the market.  So this could be the case here providing an opportunity for Duke Street Trust followers.  TCS is a total growth play here as expansion is a major focus. TCS has a bit of a cult following too, like an MLM. They seem to have some good management at the top which trickles down to the employees.  In the video above, the CEO claims that roughly 40% of the TCS employees actually own stock in the company.  That's pretty good, and it helps with employee turnover.  Happy employees makes for higher productivity.  Here is Container Groups news feed to follow them TCS news Feed.

Here's the thing with joining stock picking newsletters, for the most part, you get what you pay for. Some are better than others, and some just are horrible. But the horrible ones don't last long, as they would have no subscribers left if that were the case. For the most part, history of winners is a good indicator if you want to follow a stock picking “guru”. If you cant make your subscription money back from your first one or two recommendations, then its probably not a good newsletter. In the case of TMF and the Gardner Bros…. well they have been around a long time.

Just remember, any investments you make is really your responsibility. It is you who ultimately decides to push a button or to hand over money, no matter if it was a scam or a solid, legitimate deal. So take heed and do your research before making that type of decision. When it comes to long term investing, there is no pressure to buy now. Keep greed and fear out of the mix.

References:

TMF (The Motley Fool)

Google Finance

 

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Written by John Thomas

I began my investing career back in 1998. I quickly discovered day trading, small cap and penny stocks. I was the editor of my own investment newsletter, stock promoter, investor relations, public relations and have witnessed the back-end process of taking a private company public through reverse merger and registration. That is roughly over a decade in a nutshell. During this time I learned how to identify the rats, sharks and people who truly want to help you learn about investing. Now I do research and write.
My hope is to pass along nuggets of information that could help or the very least entertain you on your way to financial success.