Dusk - Is it a Buffett worthy stock

By: Chris Batchelor

My last two blog posts have focused on stocks that meet the criteria for the screen developed by Stockopedia contributor Roland Head, as outlined in his recent article titled “Screening for Warren Buffett stocks: the ultimate strategy?”, Roland created a screen that he believes would closely mimic the approach Warren Buffett uses to choose stocks that are likely to be great compounders. When that screen is applied to the Australian and New Zealand market today, only 10 stocks make the cut. So far I have written about Universal Store Holdings (ASX:UNI) (read here) and NZE listed Mainfreight (NZE:MFT) (read here). Today I will take a look at candlestick maker Dusk (ASX:DSK).

Dusk is a retailer of candles and other home fragrance products. They design their own products and sell them through their network of stores as well as online. They are not sold through other stores or market places. Candles are their biggest product however 64% of sales come from other products with diffusers and scented consumable refills rapidly catching up to candles.

Dusk underwent an IPO in November 2020. The price soared from $2 to...