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Showing posts from 2018

A 5-Factor Analysis of Square

Overview: Square, Inc. engages in the provision of credit card payment processing solutions. The firm offers additional point-of-sale services, financial services, and marketing services. The company was founded by Jack Dorsey and Jim McKelvey in February 2009 and is headquartered in San Francisco, CA. Number of Employees: 2,338 CEO: Jack Dorsey Peer Group: Stock Name (Symbol) Last Price Market Cap CDW Corp.(CDW:XNAS) $87.87 13.2596B Cap Gemini SA(CAPMF:OOTC) $116.37 19.5645B Constellation Software Inc.(CNSWF:OOTC) $689.40 14.6094B Hexagon AB Unsponsored ADR Class B(HXGBY:OOTC) $48.83 16.8305B NTT DATA Corporation Unsponsored ADR(NTDTY:OOTC) $10.99 15.4135B Wipro Limited Sponsored ADR(WIT:XNYS) $5.08 22.8726B Workday, Inc. Class A(WDAY:XNYS) $135.26 29.3514B Vantiv, Inc. Class A(VNTV:XNYS) aka Worldpay (WP) $79.49 23.9945B ServiceNow, Inc.(NOW:XNYS) $160.63 28.8018B Shopify, Inc. Class A(SHOP:XNYS) $134.81 14.4205B Atlassian Corp. Plc Class A(TEAM:XNAS) $73.20

Alibaba - The Time Isn't Now

The Magic is Real...except for price momentum. Overview: Alibaba Group Holding Ltd. provides online and mobile marketplaces in retail and wholesale trade. It operates through the following segments: Core Commerce; Cloud Computing; Digital Media and Entertainment; and Innovation Initiatives and Others. The Core Commerce segment comprises of platforms operating in retail and wholesale. The Cloud Computing segment consists of Alibaba Cloud, which offers elastic computing, database, storage and content delivery network, large scale computing, security, management and application, big data analytics, a machine learning platform, and other services provide for enterprises of different sizes across various industries. The Digital Media and Entertainment segment relates to the Youko Tudou and UC Browser business. The Innovation Initiatives and Others segment includes businesses such as AutoNavi, DingTalk, Tmall Genie, and others. The company was founded by Chung Tsai and Yun Ma on June

Google Inc. - Risk is High

Would you go out in this? Overview: Alphabet, Inc. is a holding company, which engages in the business of acquisition and operation of different companies. It operates through the Google and Other Bets segments. The Google segment includes its main Internet products such as Ads, Android, Chrome, Commerce, Google Cloud, Google Maps, Google Play, Hardware, Search, and YouTube. The Other B)ets segment includes businesses such as Access, Calico, CapitalG, GV, Nest, Verily, Waymo, and X. The company was founded by Lawrence E. Page and Sergey Mikhaylovich Brin on October 2, 2015 and is headquartered in Mountain View, CA. Founded: 2015 Number of Employees: 80110 Headquarters: Mountain View US CEO: Lawrence E. Page Analysis Methodology: This will be a general analysis reviewing the following areas: earnings quality, growth, value and dividends.  We'll also look at R&D investment as an indicator of potential competitive advantage, sales per employee as an indicator of

Power Up Your Investment Analysis Using Probability

It's a numbers game, maybe like Bingo. Nobody knows the future, but developing our skills in probability analysis will make us better at preparing for it. We can use probability at any level - global, country, market, industry, company.  We can use it for an event, for example the probability of the price of gold increasing or the trend of interest rates. For this example, we'll use probability at the U.S. market level. The question we'll attempt to answer using probability is "does the bull market have more to run, or are we at the top?" Step 1 - Identify the key factors We'll begin by listing the factors that influence, not just any bull market, but this one.  Remember, the factors I choose and the probabilities I assign are my decisions.  You may come up with different factors and different probabilities. In my opinion, this bull market was created in the aftermath of the global financial crisis.  It was built on earnings, incredibly loose

Twilio - Growth Isn't Reasonably Priced

This must mean something to somebody. Overview: Twilio, Inc. engages in the provision of communications software, cloud-based platform and services. Its developer-first platform approach consists of programmable communications cloud, super network, and business model for innovators. The company was founded by John Wolthuis, Jeffery G. Lawson, and Evan Cooke. Founded: 2008 Number of Employees: 996 Headquarters: San Francisco US CEO: Jeff Lawson Analysis Methodology: We'll keep TWLO's business model in mind as we analyze it.  They're an enabling company - they provide tools to help other companies deliver on their objectives.  They help their customers focus on their core business by providing a robust platform where they can quickly, easily and for less money (presumably)  build the ancillary features they need to be successful, namely customer support.  They're a B2B business using a SaaS model.  They are "developer-centric".  I interpret thi

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Expedia Lacks A Compelling Investment Story

Overview:  Expedia Group, Inc. is an online travel company, engaged in the provision of travel products and services to leisure and corporate travelers. It operates through the following segments: Core OTA, trivago, HomeAway, and Egencia. The Core OTA segment offers full range of travel and advertising services to worldwide customers through a variety of brands including: and The trivago segment involves in sending referrals to online travel companies and travel service providers from its hotel metasearch websites. The HomeAway segment operates an online marketplace for the vacation rental industry. The Egencia segment manages travel services to corporate customers worldwide. Founded: 1994 Number of Employees: 22,615 Headquarters: Bellevue US CEO: Mark D. Okerstrom, MBA Alas, we don't see the case for an upward trajectory. Analysis Methodology This will be a general analysis reviewing the following areas of EXPE: earnings quality, growth

A Value Opportunity in Bausch Health

Overview: Bausch Health Cos., Inc. engages in the development, manufacture, and market of a range of branded, generic and branded generic pharmaceuticals, medical devices and over-the-counter products. It operates through the following segments: The Bausch + Lomb/International, Branded Rx, and U.S. Diversified Products. The Bausch + Lomb/International segment consists of the sale of pharmaceutical products, over-the-counter products, and medical devices products. The Branded Rx segment comprises of pharmaceutical products related to the Salix product portfolio; dermatological product portfolio; branded pharmaceutical products, branded generic pharmaceutical products; over-the-counter products; medical device products; Bausch + Lomb products sold in Canada; and the oncology, dentistry, and health products for women. The U.S. Diversified Products segment refers to the sales in the U.S. of pharmaceutical products, over-the-counter products, and medical device products in the areas of