| Author | Message | ||
     Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3891 Registered: 05-2011 Rating: N/A |
Positions updates: Sonos (SONO) is trading higher after the USITC (trade commission) confirmed that Google has infringed on five different Sonos patents, banning imports of some smart speakers, phones and laptops. Google can still appeal the decision to the top patent court. Google could also potentially put in place workarounds, while a royalty deal is also possible or potentially likely down the road. The strength of Sonos' patents (and its software) seems to be a cherry on top for this premium speaker company. AS a result, I continue to like owning this tock at a very reasonable 11x forward EBITDA, a discount to most other tech hardware stocks. Personalis (PSNL) guided Q4 revenue slightly above estimates. Biopharma revenue grew 102% (+26% ex-Natera) was offset by a 58% decline from its business with the VA. The company launched its tumor-informed liquid biopsy assay, NeXT Personal (molecular residual disease) last month, which was a big milestone. The company guided for more than 50% revenue growth in its oncology business in 2022. The company also announced a $100M at the money offering earlier this week. The stock caught an upgrade at BofA this morning. This remains one of the cheaper healthcare/tech diagnostics companies trading at only 4x forward sales. I thin it is a potential takeout candidate, although that doesn't necessarily justify a thesis. I bought a small position in late March 2020 and still have half of that position left that I plan to hold. A number of positive broker recommendations for positions this morning: The Trade Desk (TTD) upgraded at Jefferies, target to $105 from $100. Remain one of my core longs. Stock closed at its 200-DMA yesterday which represents ~68x forward EBITDA. Buying this stock on pullbacks has worked since the IPO. The company continues to take market share in the programmatic advertising market, helped by a strong position in connected TV. Coursera (COUR) upgraded at Goldman with a $32 target. This stock has gotten too cheap at 5x sales. Out of favor with the rest of the software IPOs that benefited from the pandemic. I continue to like it for the University degree programs and big tech certifications that should continue to drive growth. Delta (DAL) upgraded at BofA, target to $48. During the Trader Strategy meeting yesterday, I noted that this stock is likely due for another bounce back toward $50 over the intermediate term. Demand for travel should remain very strong going forward (after this Omicron wave dissipates in the coming weeks) Airbnb (ABNB) resumed with a Buy at Jefferies, $220 target. Noted on the Trader Strategy meeting that this is a pioneer/leader in travel worth buying while out of the favor. Expedia (EXPE) resumed with a Hold at Jefferies, $200 target Planet Labs (PL) initiated with a Buy rating and $10 target at both Piper Sandler and Wedbush. I am looking to continue accumulating this tock while it is totally out of favor. The company will present at a Needham Conference at 2:00 PM on Monday. GoodRx (GDRX) initiated with a Buy at Goldman. This stock fell to an effective record low yesterday, giving the stock a still not "cheap" ~38x forward EV/EBITDA multiple. Clearly, the pandemic continues to weigh on normal healthcare utilization. Tragically, the ramifications of the pandemic are devastating in terms of the amount of cancer that won't be detected early enough, for one example. Hopefully, the healthcare system will normalize in the coming quarters/years, which will be a tailwind for GDRX. GDRX, COUR and PL all represent stocks I own that deliver more economic good than they are delivering for shareholders at the moment. If business momentum can hold up in the coming quarters/years, I think investors will start to realize and further appreciate the value they add to the economy. Quidel (QDEL) guided Q4 EPS well above consensus as demand for its COVID testing business was off the charts during the Delta and now Omicron waves. One would think that strong results were entirely expected, so I am not surprised to see a muted response. The government has pledged 500M tests and hopefully this Omicron wave is somewhat of a crescendo, so there may be some forward-looking traders looking to fade this stock despite the cheap valuation of ~8x EBITDA. |