Yes. Its at book value with 50% yoy growth. If you like the company, now is the time.
rngdtg
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@UJiggy, were you able to get in? moved up quite nice after you commented for a few days
UJiggy
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@rngdtg, I added to my position. Growth was the first thing to go bearish, so it'll be the first thing to go bullish. SOFI, MTTR, and RKLB are all trading at or around book value. They can't go much lower with the rest of the market poise for huge down turn going into October. That said. I'm not going to add anymore until the SPY hits 365-370. Until then, nothing seems like a good idea.
rngdtg
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@UJiggy, I will take a look at those names, MTTR I have heard of before.
VanderStonks
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@UJiggy, I don't think Book value really mean much (look at T, it fell below book value - dividend yield). The Fed will continue hiking, DXY is rallying, JNK is down. As you said, nothing seems like a good idea (until a pivot comes).
UJiggy
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@VanderStonks, in relation to T, they are a retailer looking at severe supply chain issues and 8% inflation. Sofi offers no physical products so is unaffected directly by supply chain issues and banks revenues increase as rates rise.
In the short term, I don't think book value is good indicator of a turn around. But, the three companies loading up on SOFI, MTTR, RKLB all have YoY revenue growth, strong cash on hand, and are trading near book value. Although I believe the market has alot more downside to realize, no one can know one when the bottom has been reach. Therefore, if you are a long term investor, you have to buy consistently while stuff is on sale.
VanderStonks
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@UJiggy, Bank revenues do not rise when interest rates rise. You can easily look at revenue and net margins for JP Morgan Chase, Wells, Citi, etc. They have been on the decline since the top of the indexes.
I would agree with you that book value does not matter (such as NNDM, it's trading at half of it's book value, their cash on hand/outstanding shares is $5.02 yet its trading in the $2.40 range). I would honestly not buy anything and hold for long term when more Fed pain is coming. QT and higher rates are destroying all risk assets.
@UJiggy, As a chartist, I could care less what the fundamentals say. Fundamentals are lagging. Chart traders move the price and direction. As a chart trader, it's the price and direction that matter. I bet you haven't looked at the overwhelming amount of premiums on the Oct. 21 puts that Big money is in.
UJiggy
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@VanderStonks, Sure. You can make a dime here and there riding the direction the right way, but if that's your aim, then this is not the stock you should be looking at. Play a big value company like T, AAPL, or AMZN. Or just play the SPY, where there are no fundamentals at all. Looking at it right now, Sofi is trading at x0.78 P to B with 57% YoY revenue growth. It's by far and away the worse performing stock in its sector, but arguably the best performing company. The only negative catalyst over the past year being the general market conditions as a whole switching from growth to value. Chart or no chart, this is a stock that can 20x in 5 years. I don't care where the chart says its heading tomorrow, it's extremely undervalued.