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Entries from November 2019

LiveRamp Is Ramping Up

November 30th, 2019 · Comments Off on LiveRamp Is Ramping Up

While the company still makes a substantial loss and loses cash, it can afford to do that given its iron-strong balance sheet. With revenues growing at nearly 40%, leverage will start to kick in soon. The company is clearly gaining traction and its IdentityLink solution is benefiting from network effects. The only negative we can […]

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Tags: RAMP

Baozun Growth Slowdown Is An Optical Illusion

November 30th, 2019 · Comments Off on Baozun Growth Slowdown Is An Optical Illusion

The shares sold off on a reduced growth outlook and a slight Q3 non-GAAP earnings miss. We will argue that both are actually more positive than they are negative. Add to that a fairly reasonable valuation and we think the shares should recover in time. Source: Baozun Growth Slowdown Is An Optical Illusion – Baozun […]

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Tags: BZUN

Atomera Is Gaining Traction, But Still Remains Risky

November 30th, 2019 · Comments Off on Atomera Is Gaining Traction, But Still Remains Risky

The company is generating increasing interest from the industry trying out its MST technology. But the pre-production agreements don’t bring anywhere near sufficient amount of revenues for the company to be profitable or generate cash. With cash sufficient for another 12 months or so, some clients will have to go into production with MST for […]

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Tags: ATOM

Arlo Technologies Could Be A Surprise Win

November 30th, 2019 · Comments Off on Arlo Technologies Could Be A Surprise Win

The company has had a very rough time since splitting off from Netgear with increasing losses and the shares down 70% or so. While the company is still very far from profitability, there are signs things could improve from here based on new products, cost-cutting and an excellent deal with Verisure. We first have to […]

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Tags: ARLO

Stage Stores’ Q3 Was A Blast, Its Outlook Is Rapidly Improving

November 22nd, 2019 · Comments Off on Stage Stores’ Q3 Was A Blast, Its Outlook Is Rapidly Improving

The economics of store closures and conversions to the off-price format are even considerably better than management assumed only a quarter ago. These are now projected to provide $35M in cash flow this year, reducing the risk of bankruptcy and setting in motion a virtuous deleverage cycle. With most of the store closures and conversions […]

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Tags: SSI

Talend Should Ultimately Benefit From Its Shift To The Cloud

November 22nd, 2019 · Comments Off on Talend Should Ultimately Benefit From Its Shift To The Cloud

The company is well placed to benefit from the increasing importance of big data, as well as from the shift to the cloud. The shift to the cloud, while ultimately beneficial for the growth of the company, is having a modest negative transition effect on company metrics. The shares are fairly modestly priced although profitability […]

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Tags: TLND

High-Risk, High-Reward Investors Should Love Milestone Scientific

November 20th, 2019 · Comments Off on High-Risk, High-Reward Investors Should Love Milestone Scientific

The company has a drug delivery technology platform with multiple uses. One is already commercialized for dental practices and produces cash flow for developing and commercializing other applications. Management is concentrating on the CompuFlo Epidural, and the device looks on the edge of a commercial breakthrough. The economic case for hospitals and insurance companies is […]

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Tags: MLSS

RumbleON Is Making Progress, But Needs Finance

November 19th, 2019 · Comments Off on RumbleON Is Making Progress, But Needs Finance

In principle, RumbleON has a highly attractive business model that cuts many inefficiencies and information asymmetries out of the market. There are encouraging signs of financial improvements in Q3, but Q4 will focus on inventory building and the progress will be interrupted. The company will also need more finance. Source: RumbleON Is Making Progress, But […]

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Tags: RMBL

Tufin Shares Are Still A Bargain

November 18th, 2019 · Comments Off on Tufin Shares Are Still A Bargain

While not a pure SaaS play, the company nevertheless sprouts a SaaS-like business model with recurring maintenance sales, 80%+ gross margins, 30%+ revenue growth, and large up-sell revenues. We think that the 3.6x 2020 EV/S multiple is too low for a market leader with these characteristics. The company has multiple large greenfield opportunities in front […]

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Tags: TUFN

BEST Inc. Is Poised For Further Growth

November 18th, 2019 · Comments Off on BEST Inc. Is Poised For Further Growth

The company is growing considerably faster than the market, and it is fine-tuning the business model of some of its businesses, like supply chain management and Store+. Margins are gradually expanding, and the company produced a small non-GAAP profit. It has a number of small new businesses that are growing very fast and could become […]

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Tags: BEST