7/9/24 - $olo - Target hit, buying here $4.357/9/24 :: VROCKSTAR :: NYSE:OLO
Target hit, buying here $4.35
- thanks again for the DM my friend
- picking up shares here at $4.35, the 20% cagr top line 2Y growth is simply too good for a stock that trades at 1.3x enterprise value
- when you adj for cash, the stock is 11x PE and also cagr'ing EPS in the next years near 20% (or more), again too cheap
- they're not burning
- huge cash pile
- either they buyback or this thing straight gets taken out *
- *the more i think about "what happens to cheap B2B in this environment" i can only think... we're going to see take outs for good growers with healthy balance sheets. this would be a good tuck in for so many larger payment names
- same logic as 5/7 post... below $4 we go large. for now i'm starting with a 50 bps position
V
OLO trade ideas
5/7/24 - $olo - dip buyer only, but would like to own decent eps5/7/24 - vrockstar - 2ish times sales, inflecting profitability, not a cash burner (by a large mgn), 20% cagr top line growth... this is defn a buy. HOWEVER, it's not a must own into this print, consider their customers that are thriving on the rates and bidenomics. i'd look to dip buy this ONLY after a print that's a pass but "not good enough". any beat that results in a pop i'd not be chasing and simply keep it on the watch list. like the growth, like the name/ solution, but in this tape i need discounts on small-tech only. targeting a buy in the 4.25-4.35 area, ideally. below $4 and you can go large.
$OLO High Tight Flag (HTF) Breaking Downtrend$OLO looks like but is not a HTF. I'm treating it like it is. To qualify it should rise over 100% or more and pullback no more than 20%. Once again, it has the essence of the HTF so I'm playing it with an early entry as it breaks the short term downtrend line.
My stop is very tight at around $1.00 below entry (Around because it depends on how it acts, if fast drop $1.00 for sure if slow pullback may give it a little more room.). It either goes or I'm out.
Ideas, not investing / trading advice.
Benefit from both online and covid recoveryDuring the covid time, online good ordering became mainstream. One think which striked me was restaurants often time used a different platforms when they handle in-restaurant order and online order. Thats why you could see a lot of different terminals sitting next to the restaurant kitchen...because they would have to install one per delivery services...plus the one they used in-house.
I often time ask myself would it be nice if all these could consolidate?
I found the answer when I went to Shake Shack last week... i was queuing up in front of their casher and I notice they promoting to their customer to use a web based ordering system which allowed you to skip the queue. I took a look and its actually the same app for their customer to order online.
I dig deeper and found that the system was actually by NYSE:OLO a New York City-based B2B SaaS company that develops digital ordering and delivery programs for restaurants.
While the stock market has been battling since early 2021, traditional (recovery) vs transformational (new tech and everything online), how come we couldn't find the right investment target that catered both?
Apparently OLO is my pick.
I have entered into position since 39 and will take 10% as my cut loss point and strong hold.