Would be interested to hear your thoughts given the current share price of $2.90, especially considering there hasn’t been any material change to the underlying business aside from the political/policy environment.
This case reminds me in some ways of Edenred—a solid business, a monopoly, but one that’s affected by government decisions. And since these factors are beyond their control, the market is downgrading a business that’s perceived as less robust. As you rightly point out, the business remains the same and will continue to do so. Travel is a priority for people, and companies will continue to seek out communication skills because relationships are human. That said, the key lies in government decisions, which are impossible to predict. However, if you think things will calm down in five years, the stock could see a re-rating. If the company keeps falling and reaches ridiculous valuations, there’s more to gain than to lose.
Agree completely. Especially your “more to gain than lose” point. The company clearly has a strong grip on its market, which is evident in its pricing power. That said, it remains heavily influenced by government policy. However, if you take a long-term view, this could very well prove to be an opportunity for level-headed investors. Love your work!
Would be interested to hear your thoughts given the current share price of $2.90, especially considering there hasn’t been any material change to the underlying business aside from the political/policy environment.
This case reminds me in some ways of Edenred—a solid business, a monopoly, but one that’s affected by government decisions. And since these factors are beyond their control, the market is downgrading a business that’s perceived as less robust. As you rightly point out, the business remains the same and will continue to do so. Travel is a priority for people, and companies will continue to seek out communication skills because relationships are human. That said, the key lies in government decisions, which are impossible to predict. However, if you think things will calm down in five years, the stock could see a re-rating. If the company keeps falling and reaches ridiculous valuations, there’s more to gain than to lose.
Agree completely. Especially your “more to gain than lose” point. The company clearly has a strong grip on its market, which is evident in its pricing power. That said, it remains heavily influenced by government policy. However, if you take a long-term view, this could very well prove to be an opportunity for level-headed investors. Love your work!
Interesting company! Thanks for the write up
Thank you PitchStack!