HaleyZhao

GDRX: Buy at $64.32 Profit at $80.40

Long
NASDAQ:GDRX   GoodRx Holdings, Inc.
Have you ever wanted to compare prices to get the cheapest drug prices? Well look no more and take a look at Goodrx. This is a software platform the helps find disocunted prices for prescription drugs. Overall it look pretty good that it compares major retailers like Costco, Walmart, CVS and more. This IPO only a few week ago on 09/23/2020 and this constitutes looking for an IPO base. To find more about IPO bases look here:
The technical set is going well with no undercut of the initial IPO day price and has made a sideway correction of at least 5 days. Today on 10/01/2020 volume has dried up even more, which makes this more constructive. The base depth is a bit concerning.

Fundamentals are great with sales and EPS below

Quarterly Sales
Sep19: +63%
Dec19: +82%
Mar20: +63%
Jun20: +35%

Yearly EPS
2016: .02
2017: .07
2018: .11
2019: .17

One concern is how do they make money? It seems to be mainly advertising on their website and using the discount cards, which pharmacies will give Goodrx a fee. There is also a monthly subscription that can get alot of drugs for $10 or less, which is called Goodrx Gold. This is a nice change where you will know the price of the drug you bought even before you order. We shall see how this breakout will work.

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All ideas are for information purposes only. I may or may not invest in the stocks discussed.
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