Clear Secure (YOU-Q)

A tech company that handle biometrics, like examining your eyes, face and fingerprints to verify your identity at the airport. They operate in 38 airports and now handle Covid health passes at offices, cinemas, casinos, restaurants and theme parks. They are first to do this--nobody else comes close to them in this business. Problem is, YOU doesn't reveal enough details in its reports, which he he doesn't like. Too many totals like 7 million cumulative enrollments (all sign-ups, up from last year's 5.25 million), and not enough break downs of services. Their net member retention came in at 80.6%, down 5% YOY, which means nearly 20% churn which is not good. However, business held up fine during Covid because it's a subscription services and jumped during the reopening. The valuation trades at 25x sales--not earnings. They aren't expected turn a profit until 2023 the earliest. Too rich for him. Pass.