Cliff Note #132: Multibagger Potential Through Experienced Management, International Expansion & M&A
Multibagger Themes: GARP- Inflected to Profitability - Accelerating User Adoption - International Expansion - M&A upside - Experienced Management
Multibagger Themes: GARP- Inflected to Profitability - Accelerating User Adoption - International Expansion - M&A upside - Experienced Management
In line with Monday’s community update “challenge,” our fourth Cliff Note out of five is ready. This company grew revenue by over 40% last quarter, increased Monthly Active Users by more than 100% over the past year, and recently pivoted to profitability. The real cool thing about this company is that it’s filling a hole in an industry that is inefficiently serviced and run. I hate the use of the word “disruption,” but the CEO’s plan does appear to be unique and has been having success in its initial geographic market. So now, the CEO is pursuing international expansion with minimal incremental investment and is targeting M&A opportunities, both of which could drive a re-rating from its current 10 x run‑rate P/E. Additionally, insiders own over 30% of the stock, and a few people we really respect in the small-cap community like the idea.