Adding to UBER
“Finding investments is easy, waiting is hard, waiting is the hardest part”
-Clay Baker
The Portfolio Performance
The portfolio is up 11.37% YTD
Adding to UBER
By the time you read this I will have added 847 shares at $36.85/share to our existing position in UBER. See the portfolio for details. The Stay Invested portfolio is now holding a full position in Uber.
I'm taking advantage of the fact that UBER is at its 52-week lows. By itself that's not a reason to buy any stock but with the expectation that earnings will grow 39% next year, revenues will grow about 47%, and gross margins remain high at around 40% I like the setup. I also like that UBER trades at just under 5 times sales. Compared to many other growth companies trading at 30 and 40 times sales, UBER is a bargain growth company for investors who can wait. Uber is not an investment for a quick return, traders can stay away. Uber is a long-term investment in the future of mobility and delivery services.
My biggest concern with UBER isn't all the political noise, it's the debt. The company has about $11.25B in debt and only $6.5B in cash. With only $354M in free cash flow, and negative operating cash flow, I have to force myself to look at the rest of the business objectively.
"Markets don't go to zero, Portfolio's do.
Buy quality, be patient...and look twice for motorcycles."
- Clay Baker
Stay Invested,
Clay Baker
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Keep Me Honest 2021
The S&P 500 will achieve year-end earnings of $170-$175 (1-1-2021).
We are likely to have a significant pull-back during the 1st quarter, about 5%-10% (1-1-2021).
Stock picking will outperform algorithmic trading again as it did in 2020 (1-1-2021).
S&P 500 will reach 5,000 by year-end.
Clay's Rules
Rule #1: Don't lose money
Rule #3: Portfolios go to zero, markets don't, Stay Invested
Rule #4: When good stocks you own drop 10% below your cost basis, add shares
Rule #5: Bull markets aren't sustained without the Transports
Rule #6: When Forward P/E is lower than TTM P/E, expect earnings to increase
Rule #7: When an investment bank sells below book value, buy it
Rule #8: Tips are for waiters. Do your own homework.
Rule #9: Don't sell a stock because you're bored with it. Do your own homework.
RULE #10: Being early and being late is the same as being wrong...move on.
Rule #11: Investing is easy. Waiting is hard, waiting is the hardest part.
Disclosure: I am personally invested long in some or all of these stocks or funds that appear in the Stay Invested portfolio and may purchase or sell shares within the next 72 hours. I am also invested in other stocks and funds that do not appear in the Stay Invested portfolio but may be mentioned or related to this article. It is not my intention to advise or encourage the purchase or sale of any security. I am invested long in these securities mentioned in this post:
AMD, AMRN, AMZN, AAPL, ARKK, ARKG, CNRG, ENPH, FB, GNRC, GBTC, GLD, HRTX, HD, IPOD, MSFT, NVDA, PSTH, TWLO, VBIV
I am invested short in these securities mentioned in this post:
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.
