COUPANG: 11-year old $75 billion Amazon-like business model. Down 37% since all-time high IPO. 70% of Korean population lives within 7 miles of Coupang logistics center. same day and next day delivery on 100% orders. incredible growth year after year. Still bleeding heavy in operations but making improvements year. not free cash flowing yet but looks like its heading there. about $2 bil in debt with $1 bil in cash.
MY verdict: it may be in a strong niche in Korea as long as consumers over there keep spending but Coupang is already trading at 6 times sales-double Amazon’s 3 times sales. If you think the company will keep growing at a strong post-covid rate this year and the next, there may still be some upside in its shares. Remember, Alibaba topped 10 times sales before it come crashing down.
PALANTIR: Not a big fan of this company because of its founder’s actions in bankrupting Gawker. insider Thiel though has sold out $500 mil worth of shares since IPO but remains chairman of the board. strong growth in 2020 despite pandemic but bigger losses $1.2 billion. lots of cash $2 billion with $450 million debt. Good cash flow generation.
MY verdict: Company has steady and strong growing business. generates $1billion (and growing) or 56% of its business from the Fed/US government. stock price is down 50% from all-time highs.
SUPER LEAGUE GAMING: Never heard of this company. $130 million valuation. Wall Street sees 33% rise in earnings next year. no debt. 6 times book value. no earnings in the past five years. no free cash flow.
MY verdict: pass on this.
AMERICAN TOWER CORPORATION: largest communications real estate specialist. getting more profitable each and every year steadily. getting more heavily in debt each and every year at the same time.
MY verdict: I usually pass on companies who have debt-equity ratio of more than 2. pero on AMT’s case, looks like it knows what it’s doing with its tens and billions of debt. I will still pass.
SIMON PROPERTY GROUP: Ultimate REIT heart breaker. was down as 50 bucks last year and now trading 115 per share. increadible comeback. props to those who stuck with this company, clearly Simon and its premium outlet store is not going anywhere. heavily indebted though. company’s business has slowly been declining even before pandemic. like American tower, debt has been increasing each and every year.
MY verdict: it was really attractive last year in hindsight but won’t touch it shares now just because a different REIT has better numbers look at AMT.
EQUINIX: a globally diversified data center designer/builder/operator. business growth has been impressive regardless of the pandemic last year. payouts have been steadily increasing as a REIT albeit 1.6% in today’s yield. another common trait of accumulating debt is observe as is for most if not all REITs.
MY verdict: Shares are down nearly 20% from its peak but still at 6 times book and 72 times price-earnings—screams overvaluation. I’d like to see higher dividend yield before considering buying Equinix shares ergo lower stock price.
SEA LIMITED: DOWN nearly 30% from all-time high. $105 billion company with no earnings to show. incredible bussiness growth nevertheless. earnings quality has been instead going south (unappealing) getting less profitable each year. Company does know how to generate some cash—not plenty of it but enough. price to book is incredibly way up there at 31 times, waaaaay higher than the more established companies mentioned above.
MY verdict: promising but pass.
FUBOTV: $1.4 billion live TV streaming platform in EU and US. no earnings to show, down 65% from all-time high. lots of goodwill assets (not a good sign, for me). lots of debt not much cash. incredible jump in sales last year (what happened there?) lots of shareholder lawsuits have been filed against this company within the past couple of months d/t heavy investment losses.
AEMETIS: never heard before. a less than $1 billion an oil and gas company. no earnings to show up 4,700% in the past 12 months. Wall Street sees possible 90% rise in earnings next year. somewhat slow business growth as i would like to see compared to the companies reviewed so far. not much cash and a whole lot of debt.
ROCKET COMPANIES: $47 billion Detroit-based mortgage/media firm. steady growing business but not so steady profits. trading at 8 times book value. heavily indebted. not generating any cash flow.
AIRBNB: Obviously has unique business model where multibillion hotel industry are strongly against. 17 times book value no earnings to show. Wall Street sees 62% rise in earnings next year. good business growth except for last year fo course. big losses too. has more cash than debt at the time being-good sign. has difficulty generating cash from operations. still bleeding and yet to find way to be profitable for its hsareholders.
MY: promising company but a pass.