Martin shreki had an interesting take on this stock. You can have negative growth rate in perpetuity but still have an undervalued stock with the DCF model if you’re looking for short term opportunities.
Thank you for the video. CHGG produces high FCF, and if they can find a way to grow, the stock will go up 3X. Or it will continue to down is value, but the data is work a lot and it might be a good acquisition target. Time will tell.
Hey Victor, I think the first time I added Chegg to my list of companies to analyze was because of your suggestion. The FCF was negative in the last quarter, and the management has a difficult task ahead, to turn things around. I do hope that they find a way to reinvent the company, while being a net positive for society, so that the shareholders benefit from the transition.
Chegg is not distrusted by AI,it is distrusted by indian experts who solve the questions as expert. They post their own questions using bots and solve them using AI. There is some loophole in chegg payment gateway ,due to which student account get total refund. Due to this,chegg has a got 616 million dollar loss,thats the sole reason and nothing related to chatgpt effect.
This company has been so poorly ran - you’re right (I’m an investor) I believe they got caught up in the free money era (got greedy and lost track of focus
Thank you for the video. So essentially to come up with the liquidation value you have assumed a 0% recovery rate for goodwill and intangible assets and 100% recovery rates for everything else on the balance sheet. Is that what you usually do for any company to come up with liquidation value or just in this case?
I am glad you enjoyed the video. No, that would not be correct. The recovery rate is rarely 100%. I made a video on how low price to book ratio can be hugely misleading: ruclips.net/video/F2Bx7iKMpAM/видео.html
they still have 3.8 million subscribers (reported) that's pretty good reoccurring revenue; even if it dropped to 900k subscribers that's still good money to buy into a company for. only way you could lose is if they go bankrupt which is just unlikely because at the end of the day they'll always have their share of the rental market; in my opinion; if they only had their rental service as the only thing they were offering i would thing the company would be at lest $10 a share which could still be undervalued.
@@siddhartharaja9413 He was asking about the future, which nobody knows. My answer was sarcastic on purpose. I strongly believe that everyone should come up with opinions on their own, not follow others. My goal is to give information that others can use, do further due diligence and then come up with their own opinion.
Martin shreki had an interesting take on this stock. You can have negative growth rate in perpetuity but still have an undervalued stock with the DCF model if you’re looking for short term opportunities.
Yes, I've seen his take. The key question is how quick the negative growth will eat the margins.
You perform great and concise analysis. Nice work
Thank you!
Thank you for the video. CHGG produces high FCF, and if they can find a way to grow, the stock will go up 3X. Or it will continue to down is value, but the data is work a lot and it might be a good acquisition target. Time will tell.
Hey Victor, I think the first time I added Chegg to my list of companies to analyze was because of your suggestion. The FCF was negative in the last quarter, and the management has a difficult task ahead, to turn things around.
I do hope that they find a way to reinvent the company, while being a net positive for society, so that the shareholders benefit from the transition.
Chegg is not distrusted by AI,it is distrusted by indian experts who solve the questions as expert. They post their own questions using bots and solve them using AI. There is some loophole in chegg payment gateway ,due to which student account get total refund. Due to this,chegg has a got 616 million dollar loss,thats the sole reason and nothing related to chatgpt effect.
You could be right about a lot of this.
Could you expand more on this please?
not all use ai very of them solve them at thier own
Exactly chegg chutiya rok nhi pa Raha hai un experts ko jo AI se solution upload kar rahe hai ulta seedha
This company has been so poorly ran - you’re right (I’m an investor)
I believe they got caught up in the free money era (got greedy and lost track of focus
Thank you for the video. So essentially to come up with the liquidation value you have assumed a 0% recovery rate for goodwill and intangible assets and 100% recovery rates for everything else on the balance sheet. Is that what you usually do for any company to come up with liquidation value or just in this case?
I am glad you enjoyed the video. No, that would not be correct. The recovery rate is rarely 100%. I made a video on how low price to book ratio can be hugely misleading: ruclips.net/video/F2Bx7iKMpAM/видео.html
they still have 3.8 million subscribers (reported) that's pretty good reoccurring revenue; even if it dropped to 900k subscribers that's still good money to buy into a company for. only way you could lose is if they go bankrupt which is just unlikely because at the end of the day they'll always have their share of the rental market; in my opinion; if they only had their rental service as the only thing they were offering i would thing the company would be at lest $10 a share which could still be undervalued.
I am not sure I follow the numbers / rationale. What do you mean by the rental services part?
Here something similar: NERDY
I'll note it down.
I am from India can you explain in few words what is the future of this company....what is your view
@@vishalprajapati7789 Not really, I don’t speak Indian.
He is asking the future of the chegg and you are replying I don't speak indian😂😂😂😂
@@siddhartharaja9413
He was asking about the future, which nobody knows. My answer was sarcastic on purpose. I strongly believe that everyone should come up with opinions on their own, not follow others. My goal is to give information that others can use, do further due diligence and then come up with their own opinion.
Perfect
very biased approach.
I welcome disagreement.