Uber (UBER)

He targets $110-120. It's cheap now. A great business model.

It's very profitable and has little leverage, but it's working capital ratio indicates tighter short-term liquidity. This is what's holding investors back. You probably need to wait a couple of earnings.

Market's not giving it enough respect. It's really a tollbooth. Recent deal with COST. Lots of cashflow, massive share buyback. Could earn $8 a share in not-too-distant future. Earnings trajectory is up, up, and away. Many more services they can add to the platform. Tremendous network effect around the world. No dividend.

Came down after excitement wore off and on fears that driverless cars would take market share. He believes that these new vehicles will gradually be brought into the UBER platform. Expanding into other areas may decrease cost, but increased volumes will compensate. Outlook is fantastic.

How will it perform in a world of EVs? If there are 3 or 4 suppliers of robo-taxis, will we still use Ubers? Until you see clarity, don't invest in Uber.

Likes it at $70. It's a trade between $70-78.

Asset-light, capital-light business. That's changing slightly with introduction of self-driving. Fantastic area. Look on goodreid.com under Insights for an article he wrote a couple of years ago -- outlines the basic thesis and why it'll do well over time.

Not expensive. Cuts will make it more streamlined.

Price action told them to get out of the way. You have to have your stops. He's even more bullish on it down at this level. Next earnings on November 3. Strong financial health, high profitability, manageable debt. Short-term liquidity ratios are a bit tight. Fantastic FCF. Fined $1B by the Dutch regarding account deactivations.

They're hitting their targets, are growing their gross market value 20% annually and adding new riders as food customers. Their membership business is growing. Lots of growth around the world. The knock against them is Waymo; they are divorced from them. Will partner with NVDA instead. Surge supply is also a plus.

Valuation is quite reasonable. The one thing that gets him is the competitive landscape -- uncertainty keeps him away.

There is the argument that Uber has the infrastructure, so autonomous vehicles will need to partner with it. If that plays out, it'll be good for Uber. Flipside is that contracts haven't been renewed in certain markets. Waymo is considering other options.

They do ride-shares but also good delivery, which is smart. They're a platform, a toll booth. They have 50 million subscribers who pay a monthly fee and drive a huge slice of their recurring business. Expand subs and that expands revenues. Great CEO.

(He didn't like them last night because they lost his dinner! But redeemed themselves today by getting him to the studio ;)

Finds it very difficult to wrap his head around its financial metrics. Is it hardware, or is it software? It is the king in its space. Margins are very skinny, so that's why they have to make acquisitions.