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He prefers Beyond Meat. Stick to that if you already own it. No need to buy two stocks in this same sector.
IPO'd today and he likes this company. It's a prescription drug comparison tool, telling you the cheapest place to buy your meds in your area with an app. The company has now expanded into a telemedicine platform, a hot business now during Covid. Originally, it was priced around $24, then raised to $33, and today closed at $50.50. It has excellent financials in a business that's fast-growing. Also, it's driving medical costs for consumers down (in American's pricey, nightmarish healthcare system) and faces few competitors. It saves Americans money on drugs, he stresses. He uses their app himself and it has saved him $50K last year in meds. It had 48% revenue growth in first half-2020. Since 2016, compound annual growth has been 57%. They're profitable, with earnings topping $55 million in first half-2020 vs. $31 million first-half 2019, or 77% earnings growth. Massive. GoodRX is the most downloaded medical app on Google and Apple for the last three years. Only negative: their user count dipped in Q2 because of Covid lockdown. Problem is with today's close, it trades at 30x sales (not earnings) (To compare, Apple trades at 30x earnings.) Also, GoodRx's earnings remain small. He expects them to keep reporting spectacular earnings, and GoodRx's largest VC investor, Silverlight, bought $100 million in shares in today's IPO (usually, the VC cashes out during the IPO). Nibble at this now, but ideally would by in the $30s.
IPO'd today and he likes this company. It's a prescription drug comparison tool, telling you the cheapest place to buy your meds in your area with an app. The company has now expanded into a telemedicine platform, a hot business now during Covid. Originally, it was priced around $24, then raised to $33, and today closed at $50.50. It has excellent financials in a business that's fast-growing. Also, it's driving medical costs for consumers down (in American's pricey, nightmarish healthcare system) and faces few competitors. It saves Americans money on drugs, he stresses. He uses their app himself and it has saved him $50K last year in meds. It had 48% revenue growth in first half-2020. Since 2016, compound annual growth has been 57%. They're profitable, with earnings topping $55 million in first half-2020 vs. $31 million first-half 2019, or 77% earnings growth. Massive. GoodRX is the most downloaded medical app on Google and Apple for the last three years. Only negative: their user count dipped in Q2 because of Covid lockdown. Problem is with today's close, it trades at 30x sales (not earnings) (To compare, Apple trades at 30x earnings.) Also, GoodRx's earnings remain small. He expects them to keep reporting spectacular earnings, and GoodRx's largest VC investor, Silverlight, bought $100 million in shares in today's IPO (usually, the VC cashes out during the IPO). Nibble at this now, but ideally would by in the $30s.
His rule: buy a tech stock that's 25% off highs during the current tech correction. For Amazon, this means buying at $2,660. Amazon is up 62% YTD vs. Apple's 46%. So, this is a reasonable entry point, at least a partial buy.
He prefers Beyond Meat. Stick to that if you already own it. No need to buy two stocks in this same sector.