Today I’m (finally!) updating the list of stocks that I follow. There have been a few different changes so today I’ll discuss stocks that I’m removing, adding and ones that will be added in the near future if all goes well.
Youku Tudou Inc (YOKU) was taken over by Alibaba (BABA) earlier this year which in a way was not a big issue because I’ve mostly stayed away from trading Chinese tech stocks but I did like the idea of being able to eventually trade a pure video play.
Monster Worldwide (MWW) was acquired by Randstad Holding. MWW was a stock I had consistently shorted as I see it mostly as a company that failed to adapt to a changing internet and will continue to struggle with the likes of LinkedIn and even
Rackspace Hosting (RAX) was acquired by a group led by Apollo Global Management LLC and Searchlight Capital Partners UK LLP. It was a stock that I had shorted despite being a very interesting company but remained overvalued in my opinion.
Demand Media (DMD) was acquired by Leaf Group Ltd, it was a stock I had mostly stayed away from because of the challenge in trying to value it. DMD owns a lot of different sites such as eHow.com which probably are seeing a slow steady traffic decline and I doubt that will change. It was a bit of an IAC Interactive (IAC) style of company but with less growth and not as much in terms of interesting divisions.
Stocks That I’m Adding:
Twilio Inc (TWLO): Twilio is a company that went public this summer and that I would not be trading right now because I want to better understand its business. the company develops and publishes internet infrastructure solutions that allow web developers to integrate phone calls, IP calls, text messages and more. Its customers include Uber, Airbnb, Netflix (NFLX), Coca-Cola (KO), Salesforce (CRM) and more. Not a bad list right? The other reason why I’m waiting is that I try to wait a few quarters of earnings, calls, etc to better judge a company. That is probably even more important when discussing a company that has fast-growing revenues but is losing money. If you look at these charts of revenues and EPS you will see exactly what I mean:
Trivago (TRVO): Trivago will be a newly listed company, that is being “spun out” of Expedia that will be added to the stocks I follow as soon as it launches.
Snapchat Inc (SNAP): Snapchat will be the most fascinating tech IPO (it filed a confidential IPO) in a long time and I’m very much looking forward to the stock listing. Why? So many reasons:
-A Pure “Social” play that can be compared with Facebook, Twitter, etc
-I’d love to see revenues and EPS be “disappointing”. increasing opportunities for profit
-The company has been executing tremendously well on a longer term strategy