Current Investment Ideas #1

Companies that are on my radar right now

In this short format I want to present to you companies and stocks, which are currently valued at an attractive level. Writing a deep dive takes me many hours and with this format I can introduce you to interesting ideas as of today.

Let me know in the comments and on Twitter/X what you think about this new format and if I should continue it.

I will only recommend high quality businesses and I am not interested in cheap, but mediocre companies. Always keep in mind, that the quality of the company is the first filter. If it does not possess a very good business model, I am not interested in the company, even if it is dirt cheap. With that being said, lets start!

1. Paypal

Paypal had a solid but not great track record over the last years. Top line growth has been there, but due to pressure on the margins and rising operating expenses the bottom line hasn’t been following. The current share repurchase program will show its effect soon enough and the new CEO brings fresh wind. Check out this video with the CEO where he talks about how Paypal wants to leverage its great data treasure.

https://www.cnbc.com/video/2024/01/17/paypal-ceo-alex-chriss-we-will-shock-the-world.html

With an EV/net income of 17.9 Paypal is very cheap, especially when you consider the valuation of the broad market. I can imagine a scenario where the sentiment on Paypal will change just like the one on Meta. And we all have that beautiful V-shape in front of our eyes.

2. Evolution AB

The thesis of my deep dive on Evolution is still intact. The current strong buybacks happily reduce outstanding shares. An EV/net income of 22 and an EV/FCF of 20.9 are still very attractive. You can find my deep dive here:

Evolution AB Stock Analysis & Deep Dive

3. Fortinet

Fortinet is up 15% since I published my deep dive but is still at an attractive level in case you have not yet initiated a position. The shares of cyber security companies like Palo Alto and Crowdstrike have gone ballistic recently and Fortinet lacks behind, for now. You can find my deep dive here

Fortinet Stock Analysis & Deep Dive

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Invest at your own risk, this is not financial advice! This is not a recommendation to buy or sell any securities discussed in the article.

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