Profitable growth Puns

$APT (Alpha Pro Tech) is a 40 year established seller of disposable PPE and woven building materials. $APT saw enormous growth and success in 2020 at the height of the pandemic. Their long predictable $45 million annual revenue more than doubled to over $100 million in 2020. Naturally as pandemic PPE supply caught up as demand softened, $APT gave back some of that growth and has seen sales of $55.5 million for Q1-Q3 of 2021 and $84.5 million on a trailing twelve month basis. The market has not been kind to the stock and they sit near a current market cap of $80 million with just over 13 million shares outstanding:

https://preview.redd.it/4dt9y3om4r981.png?width=1096&format=png&auto=webp&s=1c304749bfb2914535003f376cf18434200f14f3

While a quick glance might suggest this is a company reverting to its pre-pandemic revenues and share price, a deeper look suggests that thesis priced in by the market is a gift to diligent investors like yourselves who study what is really going on under the hood. Let’s break out the bull case for $APT:

PART 1: VALUE

Pull up a snapshot from any market data aggregator and you’ll see some of the hallmarks of a value play: P/E of 6.1, no debt, near 52 week lows etc. If we pull back the curtain and dig down, that value proposition may be even stronger than it first appears. I’ll focus purely on the balance sheet here and look at income potential in Part 2.

Reference the Balance Sheets on Page 1 of Q2 and Q3 filings:

Q2 2021 Filing

Q3 2021 Filing

First, take in the book value (assets minus liabilities) as of Q3: $62.7 million. This represents the accounting hypothetical value if the company were to shut down tomorrow, pay off everything they owe, and liquidate everything they own. No future cash flows, no growth, nothing looking to the future. It’s like calculating your net worth if you were to die tomorrow and your heirs were crackheads that pawned everything for a few weeks of speedballs. Already with this hyper pessimistic scenario, we have accounted for a valuation of $4.67 per fully diluted share ($62.7 million / 13,419,485 diluted shares) in a shut down and liquidate scenario. But APT isn’t shutting dow

I’ve been thinking about this for a while and wanted to poll this group. What kind of company do you think is a better investment?

At their extremes, the first category would include stocks that look undervalued by multiple different measurements (P/S, Price/Free Cash Flow, etc.) in addition to P/E. They have proven they can be profitable but might be “undervalued” for a good reason. Companies in this category would include MetLife, Dell, Kohl’s, and U.S. Steel. Nobody seems to have strong feelings about these stocks.

The second category would be story stocks including Ark stocks. Companies that strive to be the next big something. They might have compelling fundamentals (rising sales growth, low debt, etc.). But they’re still disliked by many who think unprofitable companies are too speculative. This would include Teledoc, Unity, Beyond Meat, and ChargePoint. Lots of people have strong feelings about these stocks.

I’ve seen many of the posts around what are your picks for next year, or the next 10, growing companies, etc etc, but as I look to rebalance a bit I have my mind only on profitable growth right now. It’s great if a company is doing 30-40%+ top line yoy, but there are many of those out there and most have it in common that they’re burning a ton of money for that growth and will continue to do so for the foreseeable future. I hold those too, but find it harder to pinpoint companies managing their growth cycle positive or at least near break even.

So I ask, where are you looking for and finding profitable or break even companies growing revenue at least 20%+ over the next few years? No specific sector in mind.

Personally some of my more recent entries with this in mind, and their recent weakness, are PGNY, ESMT, UPST, APPS, & COCO (which admittedly will likely will fall short of 20%+). Missed NARI on the pullback, but still eyeing it as well.

Corsair Gaming, Inc. is a leading global developer and manufacturer of high-performance gear and technology for gamers, content creators, and PC enthusiasts. This is a market that is only expected to keep growing! CRSR just started getting in to the camera business. As you and I know, streaming is a growing business and CRSR is a dominant player taking marketshare from competitors.

-Corsair Gaming (CRSR) reported 2nd Quarter June 2021 earnings of $0.33 per share on revenue of $472.9 million. This represents about a 22% increase from last year despite the economy reopening!

-Zacks Consensus Estimates expect earnings of $1.82 per share and revenue of $2.08 billion. These totals would mark changes of +13.75% and +22.19%, respectively, from last year.

-Digging into valuation, CRSR currently has a Forward P/E ratio of around 15. This valuation marks a discount compared to its industry's average Forward P/E of 23.03.

-CRSR recently refinanced their debt, meaning they will pay a lower interest rate increasing their earnings per share.

-CRSR has also commited to paying down its debt strengthening its balance sheet.

-The company said it continues to expect 2021 revenue of $1.90 billion to $2.10 billion. The current consensus revenue estimate is $2.02 billion for the year ending December 31, 2021.

Since this stock has been beaten down lately, this is a great entry point in my opinion. Not financial advice I'm just an ape. I have 6500 shares at 27.70 per share.

https://preview.redd.it/58ckednkd5p71.png?width=692&format=png&auto=webp&s=01ecb4d5d34f620b2125265b4a572656bad14a7b

DD Below:

Second Quarter 2021 Highlights

Net revenue was $472.9 million, an increase of 24.3% year-over-year. Gamer and creator peripherals segment net revenue was $155.2 million, an increase of 40.9% year-over-year. Gaming components and systems segment net revenue was $317.7 million, an increase of 17.6% year-over-year.

Gross profit was $130.4 million, an increase of 24.1% year-over-year, with gross margin of 27.6%, flat year-over-year. Gamer and creator peripherals segment gross profit was $54.6 million, an increase of 41.0% year-over-year. Gaming components and systems segment gross profit was $75.7 million, an increase of 14.2% year-over-year.

Operating income was $34.7 million, a decrease of 4.7% year-over-year.

Adjusted operating income was $49.3 million, an increase of 3.9% year-over-year.

Net income was $27.7 million, or $0.28 per diluted share, compar

I've worked for pretty big businesses my entire working life, and have found that growth/cost cutting always comes before the standard of service.

I currently work for a large pharmacy company and the cuts to personnel overheads have been absolutely catastrophic for the service level offered to customers, and don't get me started on the staff welfare/morale; it's non-existent.

So as a low level pleb, why are bigger businesses sacrificing every standard yet still pushing for growth whilst they continue to annihilate every resource? To my mind, surely it's better to offer a good service, with healthy, content staff as long as it continues to make a good profit (the turnover is in the 100s of millions)? My company is at a point where it cannot hire/retain staff because the conditions vs pay are that bad. We receive hundreds of official complaints every month, and to make things even better, there are so few staff in the customer service team that the customers are waiting weeks to even get a response to their complaints, and the phones are almost impossible to get through on because they're always engaged.

I know the standard answer is "capitalism bad" which I get, but I'm trying to understand from a business perspective how this is a model for the long-term.

TSXV: GOOD

GoodGamer Entertainment is an esports company, they just went public recently, trading at CAD$0.60 and boast an impressive 46.8% insider ownership. They’re focused on solving a few specific problems in gaming.

Then issues they’ve identified in the business to consumer space is users getting bored of specific titles (they give angry birds as an example), a lack of social interaction and a lack of head to head competition in games. Their solution to this is a gaming platform with constant new games being added, the ability to play and interact with friends in the platform and being able to wager money or digital currency on the games.

Within the B2B space they see game developers creating good games but lacking user acquisition experience with low app retention, and no real money tournaments. Game developers also aren’t creating sufficient sponsorship opportunities to reach the growing gaming market. GoodGamer has over two decades of online advertising experience they can bring to their in house games. their GoodGamer SDK can be easily integrated in any app to create competition functionality and brands can sponsor real or virtual currency tournaments for any game.

the market opportunity here is pretty significant, there’s about 240 million gamers in North America and real money skill based gaming is legal in 42 states and all of Canada. Mobile gaming makes up 52% of total world wide gaming revenue, growing 28% from $40.5 billion in 2019 to $54 billion in 2020 and another 24.8% to $64.9 billion in 2021.

They have 5 revenue streams:

1. Real money skill based tournament streams
2. 3rd party publisher skill based tournament integration
3. Mobile ad revenue
4. Tournament sponsorships opportunities
5. Sponsored game and survey offers

They’re a young company only having gone public this month but their platform differentiates them from their competitors and gives them a lot of upside. Their competitors are companies like Roblox and Skillz, with market caps of $41 billion and $3 billion these companies are obviously way ahead of GoodGamer but show the potential of the market. GoodGamer offers:

Comparison of mobile gaming platforms from GoodGamer investor deck

Roblox and Skillz offer half of the functionality of the GoodGamer platform and neither offer free to play and win prizes or 50+ player tournaments. I think

People For Growth By While The Then The Products, First Innovation, Our Fulfilling And Earn With Loyalty Their Generating Our Superior-Quality We Serve Long-Term Continuous Service Shareholders. Profitable Needs Unique Experience, Customer-Focused A We Of Shopping Anticipating,

1. Halozyme Therapeutics
2. Marathon Digital Holdings
3. Mastercard
4. Riot Blockchain
5. MP Materials
6. United Therapeutics
7. Aspen Technology
8. Universal Display
9. Harmony Biosciences Holdings
10. Marvell Technology
11. Lattice Semiconductor
12. Autodesk
13. Monolithic Power Systems
14. Zoom Video Communications
15. Veeva Systems
16. Pacira Biosciences
17. Meta Platforms
18. Neurocrine Biosciences
19. Chegg
20. Incyte
21. Vicor
22. Booking Holdings
23. Palantir Technologies
24. Paycom Software
25. Alphabet
26. Air Lease Corp.
27. Avid Bioservices
28. Match Group
29. StoneCo

Link to article

I would look at the ticker as an indicator of how the market feels about the company and felt confident that with laws and regulations in place my money was fairly safe. Today after GME, I look at the ticker every second in anger because who knows what's actually going on with the price. It's so disconnected from how the stock market should work even at the most basic level, supply and fucking demand. I know every day since Jan has been a hype day but today with the +25% it was sweeter than ever. LFG 🚀🚀🚀.

Edit: removed fundamentals

https://www.dividendpower.org/2021/10/05/cisco-csco-driving-profitable-growth-strategy/

VLNCF : I asked people yesterday to explain why SunDial is the move given their horrific financials and performance. The answer was "we smoke weed and its a momentum play". Ok, but why not go with a company that has even more future growth ahead, already profitable, fortress balance sheet, cash out the ass, and great marketing ? When you make moves on an undervalued company, you get a huge margin of safety compared to being randomly retarded.

Valens is focused on oil based products and extraction. They do the extraction for all your fav companies including Tilray and Sundial. As those companies grow, they use Valens more for extraction. Valens benefits from everyone's rise as their premier oil extractor.

(Valens) (VLNS on TSX) VLNCF's revenue is 98M with market cap of 220M; OGI’s revenue is 80M with market cap of 1.3B; SNDL’s revenue is 97M with market cap of 4.4B. Thus, VLNCF’s SP should be between $10 and $35.

How does that make sense?

105 Million is short term assets vs 22 M in short term liabilities and only 30 mill in long term. Clearly got cash. In fact too much cash since investors were upset recently with the company raising more money. They believe it was unnecessary and the stock price dropped. I believe they did it to acquire a key partner. When this announcement hits, it will all make sense.

Valens. 88% yearly earnings growth according to 8 analysts. Current price 2.10$ cad, analysts target is 3.61. Recently fell down because they raised more money they didnt need.

Simply Wall St rates them 91% undervalued with a target price of 27.40$. That seems pretty excessive to me though. My target price is 6-10$, which would make it only a 1 billion $ market cap.

They are entering the Australian market which is ripe. Read about their plans in their presentation: https://thevalenscompany.com/investors/

Insider buying: Last 6 months, the ceo, directors and board of directors made 6 purchases, and 0 sales.

The stock price is currently at a low so you get a huge margin of safety since you are not buying hype, but are buying undervalued. If there were options on this baby I will get them right away. Since there is not, I got stock.

Position (1 of my 2) https://imgur.com/l3zcGNP

$APT (Alpha Pro Tech) is a 40 year established seller of disposable PPE and woven building materials. $APT saw enormous growth and success in 2020 at the height of the pandemic. Their long predictable $45 million annual revenue more than doubled to over $100 million in 2020. Naturally as pandemic PPE supply caught up as demand softened, $APT gave back some of that growth and has seen sales of $55.5 million for Q1-Q3 of 2021 and $84.5 million on a trailing twelve month basis. The market has not been kind to the stock and they sit near a current market cap of $80 million with just over 13 million shares outstanding:

https://preview.redd.it/vax7ct29wra81.png?width=1096&format=png&auto=webp&s=98cc47a6938a97b85a88b9e6498190b755365a09

While a quick glance might suggest this is a company reverting to its pre-pandemic revenues and share price, a deeper look suggests that thesis priced in by the market is a gift to diligent investors like yourselves who study what is really going on under the hood. Let’s break out the bull case for $APT:

PART 1: VALUE

Pull up a snapshot from any market data aggregator and you’ll see some of the hallmarks of a value play: P/E of 6.1, no debt, near 52 week lows etc. If we pull back the curtain and dig down, that value proposition may be even stronger than it first appears. I’ll focus purely on the balance sheet here and look at income potential in Part 2.

Reference the Balance Sheets on Page 1 of Q2 and Q3 filings:

Q2 2021 Filing

Q3 2021 Filing

First, take in the book value (assets minus liabilities) as of Q3: $62.7 million. This represents the accounting hypothetical value if the company were to shut down tomorrow, pay off everything they owe, and liquidate everything they own. No future cash flows, no growth, nothing looking to the future. It’s like calculating your net worth if you were to die tomorrow and your heirs were crackheads that pawned everything for a few weeks of speedballs. Already with this hyper pessimistic scenario, we have accounted for a valuation of $4.67 per fully diluted share ($62.7 million / 13,419,485 diluted shares) in a shut down and liquidate scenario. But APT isn’t shutting down or liquidating. Is there more present-day-shareholder-meaningful value than what the accountants are

Biolase produces dental lasers. 3rd quarter profits higher than similar time period in 2019. They are a profitable company. New training program for dental hygienists is seeing their laser products being adopted by dentists at a higher pace.

Market cap: 75m Buy rating from 4 analysts

This is a long play for me, a year or 2 from now could see share price of $2 or higher as their laser sales increase and they solidfy their position as THE dental laser company.

Reverse stock split being voted on tomorrow (Nov 19) in order to increase apparent stock price and attract larger investors.

Love a deeper dive into this company, seems undervalued to analysts as the company has been doing very well quarter after quarter this year.

May 13 (Reuters) - BIOLASE Inc <BIOL.O>::BIOLASE REPORTS 70% REVENUE GROWTH IN FIRST QUARTER 2021; CONTINUED HIGH DEMAND FROM NEW USERS FOR DENTAL LASERS.Q1 LOSS PER SHARE $0.06.Q1 REVENUE $8.1 MILLION VERSUS REFINITIV IBES ESTIMATE OF $7.8 MILLION.Q1 EARNINGS PER SHARE ESTIMATE $-0.05 -- REFINITIV IBES DATA.EXPECTING TOTAL REVENUE FOR 2021 Q2 TO BE $7.5 MILLION TO $8.5 MILLION.

Aug 12 (Reuters) - BIOLASE Inc <BIOL.O>::BIOLASE REPORTS SIGNIFICANTLY IMPROVED REVENUE IN ITS SECOND QUARTER AS CONTINUED HIGH DEMAND FOR DENTAL LASERS FROM NEW CUSTOMERS FUELED GROWTH.Q2 EARNINGS PER SHARE $0.00.Q2 EARNINGS PER SHARE ESTIMATE $-0.04 -- REFINITIV IBES DATA.Q2 REVENUE $9.1 MILLION VERSUS REFINITIV IBES ESTIMATE OF $8.3 MILLION.CONTINUES TO EXPERIENCE HIGH DEMAND FOR ITS DENTAL LASERS.CURRENTLY FORECASTING REVENUE FOR Q3 TO BE SIGNIFICANTLY ABOVE YEAR-AGO Q3.EXPECT Q3 OF 2021 TO APPROACH REVENUES ACHIEVED IN Q2 OF 2021.

Nov 10 (Reuters) - BIOLASE Inc <BIOL.O>::BIOLASE REPORTS 46% REVENUE GROWTH IN 2021 THIRD QUARTER; DEMAND FOR DENTAL LASERS FROM NEW CUSTOMERS REMAINS HIGH AND CONTINUES TO FUEL GROWTH.Q3 LOSS PER SHARE $0.02.Q3 REVENUE ROSE 46 PERCENT TO $9.5 MILLION.SEES Q4 2019 REVENUE $10.2 MILLION.

I’m curious what everyone’s thoughts are on this.

Would you rather a company be focused on growing the top line or be focused on increasing operational efficiency and increasing margins?

I was looking at a company this morning that is in a boring industry and has only grown revenue 5% a year for the last 6 years.

In those same 6 years they’ve doubled their operating margins. Net income is up 330%. The amount of cash on the balance sheet is up almost 70%.

I

Date: 2021-09-22 20:29:40, Author: u/AdRepresentative7268, (Karma: 2270, Created:Jun-2021)

SubReddit: r/WallStreetBets, DD Click Here

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Some Tickers mentioned in this post:

CRSR 27.02 |GEL 8.86 |INTC 53.5 |NVDA 219.41 |SONY 114.61 |AMD 104.38 |HD 335.93 |

Corsair Gaming, Inc. is a leading global developer and manufacturer of high-performance gear and technology for gamers, content creators, and PC enthusiasts. This is a market that is only expected to keep growing! CRSR just started getting in to the camera business. As you and I know, streaming is a growing business and CRSR is a dominant player taking marketshare from competitors.

-Corsair Gaming (CRSR) reported 2nd Quarter June 2021 earnings of $0.33 per share on revenue of $472.9 million. This represents about a 22% increase from last year despite the economy reopening!

-Zacks Consensus Estimates expect earnings of $1.82 per share and revenue of $2.08 billion. These totals would mark changes of +13.75% and +22.19%, respectively, from last year.

-Digging into valuation, CRSR currently has a Forward P/E ratio of around 15. This valuation marks a discount compared to its industry's average Forward P/E of 23.03.

-CRSR recently refinanced their debt, meaning they will pay a lower interest rate increasing their earnings per share.

-CRSR has also commited to paying down its debt strengthening its balance sheet.

-The company said it continues to expect 2021 revenue of $1.90 billion to $2.10 billion. The current consensus revenue estimate is $2.02 billion for the year ending December 31, 2021.

Since this stock has been beaten down lately, this is a great entry point in my opinion. Not financial advice I'm just an ape. I have 6500 shares at 27.70 per share.

https://preview.redd.it/58ckednkd5p71.png?width=692&am