xTDGS

A company well positioned for its second growth phase

Long
NYSE:YALA   Yalla Group Limited
YALA is in my opinion undervalued at current market prices. The stock provides a strong thesis for both the fundamental and technical trader.

Their revenue has grown from 42mn in 2018 to 303mn in 2022. Net Income has grown from 20mn in 2018 to 78mn in 2022.

Paying users for the products has grown by 49% relative to 2021. Monthly active users (MAU) has grown by 14% in 2022.

No debt; you take out accrued expenses and unearned revenue, they barely have any current liabilities either.

Cash balance has grown by 2300% since 2018. Cash per share is 2.57 vs the current market price of 3.84 - Adjust cash per share and you are buying this stock for $1.27

Relative to its industry:

PE 6 vs Industry PE of 27
PS 1.80 vs Industry PS of 5.50
P/B of 1.26 vs Industry P/B of 2.60
Cash/Share of 2.57 vs Industry Cash/Share of 0.19

Technically, there is some solid support at 3.40 for traders to risk off of. The stock just closed back above the 200MA on above average volume. Ideally I would be targeting the medium term resistance at $5.50. Hence the trade provides a R/R of around 1:3.
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