Tag: t_unestablished

t_bbSitt ^t_bbSit4exit ^ t_unestablished companies

Posted on by tiger40490

k_babysit4exit

— bbSit4exit .. about the doctrine, the conventional wisdom

— A stock is labelled “babysitt needed (potentially)” if meeting all conditions:

  • (at risk of) excessive exposure, oversized .. generally close to $50 (or $100?) However, see speed up: riskCapital4U.S.eq 20k #Aaron
  • low div .. below 2%. Hard to buy-n-forget
  • often a hot stock, but lacking the long-term trend of MSFT

Classic examples — bccy; FXO; futures

— Many companies are labelled ‘unestablished’:

  • they usually pay no dividend if they are even profitable. They need all the cash to grow.
  • they often show unstable profits or no profits … a feature of the fast growth “adolescent phase”
  • they could show high market cap, up to 100B, but still unestablished.
  • they could show a “founded” date 10Y ago, but that’s unreliable. It could be in a very different business.
  • They are automatically baby-sitting stocks, unless risk capital < $20.
  • — eg:
  • Catcha
  • beyond meat
  • many tech stocks
  • some of the bio stocks
  • some of the EV stocks
  • twitter? no business model
  • moderna? proven profitability but no dividend and no long-term trend
  • — not unestablished
  • coinbase? biz model good
  • IBM, HPE, Oracle, GM, GE ..

 

140> SE:US 0% 0profit #upto $40

Posted on by tiger40490

See the blogpost on MSFT

https://www.channelnewsasia.com/news/commentary/sea-limited-group-garena-shopee-stock-share-price-market-cap-13220044

https://www.fool.com/investing/2021/01/14/4-reasons-i-bought-sea-limited-stock/

… are two 2021 articles on Sea Limited. I think this is a typical hot tech stock.

  • appearance of diversified, but many failed companies were diversified too.
  • appearance of deep cash pile, but not deep when valued using the price2bookValue model

Surely there are many promising signs, but thousands of businesses have positive signs, and most of them don’t make enough money to justify the valuation. I want to remain cool-headed and skeptical about its losses though they are improving.