This powerful consumer internet company operates a leading digital entertainment business as well as an e-commerce platform and a digital financial services operation in Southeast Asia. The company operates in some of the fastest growing economies in the world. And it is benefiting from the tailwinds of global “Stay-at-home” orders. Not surprisingly, the stock has rallied over 200% since the start of the year. In this report, we analyze the business model, competitive strengths, financial position and finally conclude with our opinion on the stock’s risk-reward (as well as an interesting options trade idea that generates attractive upfront premium income).
Income Via Growth: A Post-Pandemic Cybersecurity Winner
From time to time, we like to share highly attractive “income-via-growth” opportunities, and this is one of those times. This article is about a stock that pays zero dividend, but can provide a lot of spending cash to investors through long-term price appreciation. We believe it’s a good idea to sprinkle a few of these types of stocks into your portfolio, but if you are looking strictly for high dividend stocks, this article is not for you.
Income Via Growth Stock: Bringing Much Needed Innovation to Healthcare
It can make a lot of sense for income-focused investors to generate some of their income from something other than dividends. And in this article we review an outstanding opportunity to generate attractive income through price appreciation. Specifically, this particular stock has a SaaS-style business model with predictable cash flows, a first-mover advantage, a large and growing addressable market, improving profitability, and a strong financial position. Yet even though its premium valuation is understandable, some investors may choose to only nibble at this opportunity now while hoping for a pullback to load up on more shares later.
Income Via Growth Stock: Quality + Growth = Long Term Upside
If you are looking to generate powerful "income via growth" (i.e. selling some of your long-term winners to generate spending cash) this stock remains an attractive buying opportunity. It is one of the largest, well-diversified global SaaS companies. It has an attractive subscription-based business model that leads to stable and predictable cash flow generation. It also has a wide competitive moat to ensure future earnings growth. Further, it continues to deliver strong and consistent top and bottom-line growth (not to mention its robust balance sheet position, and significant FCF generation). This report reviews the business, COVID-19 impacts, competition and concludes with our opinion on investing.