Hi Corey! For your next review I can give you some examples of some very attractive small caps: 1) Inmode (INMD), 2) Qualys (QLYS) 3) StoneCo (STNE) and one interesting mid-cap - OKTA. First two have impressive gross margins (>82%) and I think that all four can become multi-baggers.
Well, I've been long INMD and STNE for over a year now. I think INMD has growth challenges. STNE has more potential, but just have to wait and see. Gross margins are actually not a metric I care much about. I've investing in companies that have very low margins, but have still performed extremely well, and vice versa. The main thing I ask myself with growth stocks is 1) are they profitable or about to be profitable, 2) how cyclical might the business be, and 3) how long can they continue to grow at a fast rate. If those look okay, then I look at valuation to make sure they aren't crazy expensive. I actually don't make much distinction between small caps and larger businesses, except at the extremes. It's unlikely huge mega-caps have the same growth potential as a growing small-cap, but some micro-caps on the other hand, might not have enough volume for CIC member to easily build or sell a position.
Hi Corey! For your next review I can give you some examples of some very attractive small caps: 1) Inmode (INMD), 2) Qualys (QLYS) 3) StoneCo (STNE) and one interesting mid-cap - OKTA. First two have impressive gross margins (>82%) and I think that all four can become multi-baggers.
Well, I've been long INMD and STNE for over a year now. I think INMD has growth challenges. STNE has more potential, but just have to wait and see.
Gross margins are actually not a metric I care much about. I've investing in companies that have very low margins, but have still performed extremely well, and vice versa. The main thing I ask myself with growth stocks is 1) are they profitable or about to be profitable, 2) how cyclical might the business be, and 3) how long can they continue to grow at a fast rate. If those look okay, then I look at valuation to make sure they aren't crazy expensive.
I actually don't make much distinction between small caps and larger businesses, except at the extremes. It's unlikely huge mega-caps have the same growth potential as a growing small-cap, but some micro-caps on the other hand, might not have enough volume for CIC member to easily build or sell a position.
Thank you Corey. Very informative video. CROX is at 8 PE after earnings. What's your opinion about it?
I covered it in this video ruclips.net/video/H_V0hhhhnmQ/видео.html
Crap, Iowa State came up short against Texas tech 😔
I suppose it had to come to an end eventually. Still having a great season, though.