I like buying stocks where the valuation is a huge outlier to the sector, sentiment is rock bottom, management have skin in the game (have bought recently) and where the 1st derivative changes (normally less bad) - it’s not full proof and I can be wrong but if you get it correct
then you get multiple expansion and upgrades. #GFRD at 70p was a case in point: I have added to #GETB. First tranche 33p, doubled up 66/67p. Why? It’s on 2* ARR for 12% ARR growth with scope (I think for beats) - it’s a clear standout valuation outlier given all SaaS, management
buy and it’s hated by all. Why? Beyond me but the bear is can they self finance growth. I suggest they can. Cash dynamics of SaaS, investment in own hands and new product where investors (from their armchairs?) have decided they destroy value a) this is how existing 2 businesses
started and look at value created b) it’s a free shot. If revenues come here it’s less bad, if they do not they cut r&d and you get cash flow upgrades - less bad. Either way your fading a proven board. I think SV is excellent business and is over 50% business. VC more mature but
both have arpu expansion stories - see recent deck for signs of lifting the skirt re potential for upselling into the base. Market “laps” this up elsewhere but dismisses here. 2* ARR Dec 2021. It’s just nuts. DYOR
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