7/12/24 - $pycr - Probably a buy ~$127/12/24 :: VROCKSTAR :: NASDAQ:PYCR
Probably a buy ~$12
- looked at the NYSE:PAYC entry the other day ~$140 (go check out that ticker/ comment)
- if you look at NYSE:PAYC on it's NASDAQ:PYCR pair they're pretty similar and in fact, since IPO NASDAQ:PYCR has actually been a marginally better own (including the fact that it IPO'd right at the peak of NYSE:PAYC )
- slightly better growth in NASDAQ:PYCR too, but you'll pay a commensurate bump on EPS
- more attractive high 3's on EV/Sales vs. mid 4's on NYSE:PAYC (which is fair - software moats beget moats and so in some sense the larger/ more established your biz is the lower it's cost of capital and opex leverage driving overall better valuation). however the difference in size isn't *that* difference on an absolute basis (both sub $10 bn).
- idk what to do here
- just reviewing some B2B names this afternoon that haven't participated in the smaller cap rally as much
- ones that i think are possible M&A targets, ideally software, decent balance sheets, growing
- this one fits the bill. bc it's the first time i take a look i'm going to feel it out w a 50 bps starter position. might trade around it a bit to get comfortable in the coming week/s.
- does anyone have a more nuanced POV? I'd guess we could see this rally into the >$15 region into YE. would love for it to re-test the low $11s and ideally in the 10-handle to buy it (more convinced there). that being said, seems like reasonable parking spot for now...
V
