Below are all the stocks that I currently own. I illustrate the price I bought it at so you can see what level I thought it was a good buy. The most recent purchases are at the top and most distant are at the bottom.
My Recent Purchases
| Stock | Price | Reason | Date of Purchase |
| Zip Recruiter | $20.50 | Much cheaper, at just 5x sales, than it’s peers in Upwork and Fiverr who sit at sales multiples of 20x and 32x, and yet it is the market-leader in the much-larger mainstream job search market using AI and data to maintain their leading position via network effects. | 28/05/21 |
| Poshmark | $40.12 $33.98 | Cheap valuation for the market-leader in the growing second-hand clothing market as society transitions to more eco-friendly consumption. Massive market size and growth benefiting this leader the most. | 19/04/21 13/05/21 |
| Vivid Seats | $10.12 | One of the market leaders in secondary ticket sales whose sales have capitulated with the pandemic. On a valuation of 15x 2019’s FCF, there is a lot of upside as the desperate demand for live events returns. | 18/04/21 |
| SpaceTalk | $0.12 | Cheap valuation for a company fitting the under-served market of child smart watches – allowing parents to safely contact and monitor their children’s location whilst avoiding the distractions that open internet access brings with children having smartphones | 10/03/21 |
| Rover (Nebula Caravel Acquisition) | $10.10 | Cheap valuation for the leading marketplace connecting pet owners with individuals providing pet services like walking and pet-sitting. Their business was hurt by the pandemic as people could stay home and mind their own pets, but with a 30% increase in pet-ownership in the pandemic, when these owners return to work, Rover stands to benefit. | 09/03/21 |
| Wish | $19.50, $8.10 | Cheap valuation compared to other online marketplaces with very early days of penetration in the US which could grow large when looking at their European success. They’re also highly unique in their ability to offer online shopping to lower income households, which are still a large market when you look at similar brick-and-mortar stores like DollarTree and Dollar General. | 04/03/21, 03/06/21 |
| Trident Acquisition Corp (Lottery.com) | $12.50 | Huge growth potential ahead as market-leading marketplace in the US lottery market which is only just becoming legalised in recent months, all with a reasonable sales multiple of around 10x | 03/03/21 |
| Bark Box (Pet Products Subscription Service) | $13.50 | Cheap valuation in comparison to all the other pet-focused public companies and have managed to reach $400m in sales from a simple toy box with plans to expand into other categories with their 1.5million-strong customer base | 31/01/21 |
| Smile Direct Club | $10.55 | Cheap overall at a sales multiple of 5x, and especially cheap compared to Align on 21x with similar growth profile. Both in a huge telehealth-like market ripe for changing the overly expensive orthodontics space | 26/01/21 |
| MyDeal.com (Australia’s Discounted Goods Marketplace) | $1.10 $0.50 | Not the cheapest stock in my portfolio, but considering it’s a leading marketplace in Australia for selling home-goods, and with 20million pairs of eyeballs in 2020, it’s in the early innings of a huge market. At this valuation the company needs only to get as popular as struggling retailers like Fantastic Furniture to make it a worthy investment. | 28/12/20 14/05/21 |
| A2 Milk | $10.58 $7.50 $5.10 | Cheap overall at a 21x FCF multiple in a market where the average is 25+x, but A2 still has big potential in China and is only just getting started in the US where they posted 89% growth last year. Fears about demand in China are a short-term issue that has hammered the stock. A similar milk company Oatly is set to go public at a US$10b valuation with only $300m in sales – this will drive interest into other similar companies like A2. | 20/12/20 01/04/21 18/05/21 |
| Interactive Corp (The King of Marketplaces) | $165 | Being valued less than a conservative sum of its parts, but also owns some very young but potentially very valuable marketplaces. Strong record of creating valuable marketplaces like; Tinder, Expedia, and Ticketmaster. | 18/12/20 |
| WeedMaps (The Marijuana Marketplace) | $12.05 | Big growth potential, strong marketplace with little competition, and trading at a fair valuation of only 8x sales considering the potential upside. The only cannabis stock one should ever buy. | 18/12/20 |
| McPherson’s (Swisspers, Manicare, Lady Jane, Dr LeWinn) | $1.30 | Established personal care brands that continue to power ahead, plus a skincare brand that’s posting huge growth in Aus and China. At a FCF multiple of 8x, it’s too cheap. The personal brands alone deserve a 15x, and then their skincare brand offers big upside potential. | 18/12/20 |
| Allied eSports (World Poker Tour and eSports Tournaments) | $1.10 | Cheap overall as the World Poker Tour segment alone produces FCF of $2m per year, making it alone worth at least $40m on a 20x FCF multiple. On top of that, they’ve also got their eSports segment that could pay off in a big way with its inevitable rise. The company has since sold WPT for $73m – leaving the eSports segment with a $30m valuation for $9m of sales pre-pandemic with the stock at $2. That’s a 3x sales multiple for a company in a hugely growing industry – not bad still. | 04/12/20 |
| Casper | $6.92 | Valuation is absurdly cheap at just 0.45x sales which is where other mattress companies were trading at in the depths of the COVID crash and the GFC of 2008. Mattress companies have a tendency to go bankrupt, but with narrowing losses and plenty of cash, investors are being overly dramatic here. Still growing solidly, and appealing well to the younger demographic whom have no established mattress brand loyalty. | 24/11/20 |
| Hanesbrands (Champion) | $12.40 | Exceptionally cheap on a FCF multiple of 8x due to struggles in their Hanes underwear brand, which is distracting investors from the strength in their Champion brand | 19/11/20 |
| Neogames (Powering US Lotteries) | $21.70 | The market-leading software provider for the few legal US states where lotteries have been legalised in recent years. With many more states still to legalise, especially given their financial pain from the pandemic, this company is the most successful in the space and stands to benefit most from this inevitable trend. Already profitable, and at 50x FCF, not a bad valuation considering the growth ahead. | 19/11/20 |
| eSports Entertainment (The Gambling Agent for eSports) | $4.46 | This is the only legal site to gamble on eSports events, which may sound like a tiny market, but the eSports audience reached 500million people by the end of 2021. Gambling platforms benefit from a form of network effect whereby the larger the customer base, the higher the prize pool, which attracts more customers, and so on. Being the only legal platform for eSports means the network effects will start to work most strongly for this company. They also have other eSports segments, including; tournaments, stadiums, streaming, and content production. They’re a great diversified way to invest in the rise of eSports. I was going to recommend it, but by the time I wrote the article the stock jumped 100%, and then I waited for a cheaper buy-in price to recommend it, and it then jumped again and again. I apologise for that. | 13/11/20 |
My Previous Purchases
Learn the rationale behind my historical purchases to get a better understanding of how to find good investments.
| Stock | Price | Reason | Date of Purchase |
| World Wrestling Entertainment | $35.20 | Cheap overall with a FCF multiple of only 20x for a brand that, while facing declining popularity due to the pandemic, was benefiting from their brand value internationally as they struck highly lucrative deals with the likes of Saudi Arabia to do a tour there. The company had some issues with management as the founder and owner Vince McMahon randomly fired his top two managers who turned the company into the widely successful business it is today over the past near-decade. Vince isn’t much of a financial guru, and so this spooked investors off. However, the company had some serious value to the right beholder. They also had their streaming service which wasn’t doing well as a solo project, but was a lucrative potential licensing deal for a streaming service looking to capture a unique piece of content. What ended up happening? Comcast offered them a great deal for their content and the stock soared. | $37.20 |
| Treasury Wine Estate (Penfolds) | $8.80 | Cheap overall with a FCF multiple of only 15x for a brand that gets 50% of its FCF from Asia where its growing 40%pa for the past 4 years. They were also planning to spin-off the Penfold brand into a separate company – and considering similar premium alcohol brands have valuations of 40x FCF, this would unlock a lot of value that’s being buried in their financial statements out of sight. China-Aus relations have deteriorated, but this is just another short-term issue that’s spooked investors away. Even with such awful news, the stock is still up, highlighting how a cheap valuation protects your downside risk in even the worst of circumstances | 14/09/20 |
| Upwork | $14.60 | Marketplace for the gig economy that benefits from network effects and was valued at a sales multiple of just 6x as investors didn’t like their poor (15%) growth in the early days of the pandemic. Marketplace, tech, gig economy, network effects – always deserves at least a 10x sales multiple. Eventually investors realised that early in the pandemic companies cut their hiring and so Upwork suffered. What happened 6 months later? Back to their growing ways and the stock roared accordingly. | 11/09/20 |
| Boot Barn | $17.50 | Yet another brand unfairly crushed by the pandemic fears, too much pessimism had the company on a FCF multiple of 15x despite growing at 25% in the prior year. | 24/07/20 |
| VF Corp (Vans, North Face, Dickies) | $58.10 | Same as above, clothing companies were unfairly hammered while online clothing companies soared, despite the fact they rely on brands like those of VFC (Vans, North Face, Dickies) so they have actual product to sell. | 23/07/20 |
| Boohoo | 220p | Growing at 50+% and was on a FCF multiple of 45x. Stock was pummeled due to a scandal at one of their third-party warehouses whereby employees were being illegally underpaid. The company was expensive before this, so any bad news was always going to crush the stock. At the end of the day, this was a classic short-term issue that could be easily fixed by cutting off that third-party warehouse. That’s exactly what the company did and the stock jumped with the news. | 15/07/20 |
| Hypebeast | 0.75 | Growth of 65% over past 3 years and on a free cash flow multiple of only 20x. The digital media space has huge FCF margins as it offers advertisers a way to reach the highly valuable 20-30yo audience – and with their content being so product-oriented, these users are even more valuable to advertisers. | 11/07/20 |
| ViacomCBS | $18.20 | This was yet another media producer who owns some valuable content (South Park, Dora, Nickelodeon, MTV, CBS) which was simply overlooked due to drama at the management-level. As the streaming wars heated up, investors realised the value of the many gems in their portfolio – for example, South Park was licensed for $100million per year for 5-years. Investors eventually realised the value here and the stock soared. | 11/07/20 |
| Toei Animation (Dragon Ball Z, Sailor Moon, One Piece) | 4,800jpy | This media powerhouse was on a paltry FCF multiple of just 15x despite owning the most valuable anime brands. With the streaming wars only heating up, their content was unique and valuable to any streamer looking to edge ahead of their competition. The Japanese market was relatively under-appreciated pre-2020, and all their numerous bargains eventually rose to the levels found in the rest of the world’s markets. | 07/07/20 |
| Hostelworld | 60gbp | A play on travel with more upside potential than the other travel-tech companies whom have all mostly recovered, but also not as risky as the travel laggards – cruises, airlines. | 06/07/20 |
| Disney | $110 | Disney, a monster in the film and TV space, launched their own streaming service in late-2019, and who didn’t expect it to thrive? If Netflix can get 200million subscribers with their 5-year history of making content, then the established content-machine with every franchise imaginable (Star Wars, Marvel, Pixar, ESPN) was always going to get there too. Yet Disney was being valued less than Netflix, despite the fact they also have; theme parks, consumer products, cruises, and the box office. Investors were spooked by the impact of the pandemic on their theme parks, and didn’t realise how quickly Disney could grow. To be fair, Disney themselves targeted 50mil subs by 2023, but ended up with nearly 100mil in 2020. The end result? Disney stock soars while investors suddenly aren’t too fussed about the theme parks. | 24/06/20 |
| Lions Gate | $6.50 | Company was very cheap with a sales multiple of just 0.9x, as investors feared that the company’s decade-long history of producing high-quality films on low budgets was suddenly over. Why would it suddenly be over for a film studio that has had top-7 box office market share with a fraction of the film budget of their peers for a decade? They also had the highly FCF-generating Starz streaming service which, while not growing as rapidly as the likes of Netflix, was at least actually producing FCF. This Starz brand alone was worth at least $5b – as that was an offer they received for it and declined as they thought it was a low-ball. The company happily sat at a total valuation of $2b for a year despite all this. Further, their strong owned content was earning huge amounts in licensing fees from the hotly competing streaming companies – Mad Men, Power, Outlander, Hunger Games. | 16/06/20 |
| Kontoor Brands (Wrangler and Lee) | $14.10 | Like all the other clothing stocks I purchased (and recommended) during this period, the clothing companies were unjustifiably punished with the onset of the pandemic. Yes physical stores were closed, but did you think people would stop shopping for clothes? While the clothing brands were punished, all the online clothing companies skyrocketed – but who is supplying these online stores with their products? The clothing brands of course. KTB was on a FCF multiple of 7.5x, far too cheap for a company with such strong brands that while yes was going to lose some business in lockdowns, wasn’t going to be wiped out by it. | 22/05/20 |
| Eventbrite | $6.85 | I’ll be honest here, this was more of a play on the economy re-opening and the pandemic subsiding faster than expected. The company was on a sales multiple of 1x, despite being in the hugely profitable ticketing sector where the dominant Tickemaster enjoys FCF margins of 20+%. Eventbrite was targeting a market that was under-served – ‘everything between a birthday party and a Madonna concert’. For a tech platform like this, the valuation was just too low when you consider many similar tech platforms trade on valuations of at least 10x. | 15/05/20 |
| Under Armour | $6.95 | Company is having short-term issues with profitability, and many investors have been left butt-hurt by the big fall in this stock over many years. However, the brand remains strong and a new CEO is progressing in improving profitability and reigniting the still-resonant brand | 13/05/20 |
| Capri Holdings | $10.50 | Stock was hurt in recent years due to investors’ questioning their acquisitions of Versace and Jimmy Choo – both of which they did pay a high price for. Unlike many acquisitions, this one made sense – these brands were barely profitable on their own and with Capri they can expand and maximise profitability. Looking at the core Michael Kors brand alone, the company was on a FCF multiple of just 8x with 20% FCF margins – then add in the FCF they can make out of their new brands and the valuation is ridiculously cheap | 12/05/20 |
| L Brands | $10.77 | Bath and Body Works is performing strongly with profit margins of 18% and growth in the early double-digits, but is being ignored due to struggles in their other segment – Victoria’s Secret which is facing big sales declines. So what did they do about VS? Sold it off for $4b of course, and then investors realised the value of BBW and the stock rose accordingly. | 11/05/20 |
| GIII Apparel | $8.55 | Investors were distracted by their legacy retail brands which were doing very poorly and losing a lot of money. But their core brands of Tommy Hilfiger and Calvin Klein have grown solidly for years with FCF margins of 10%. Valuing the company on these brands alone gave it a FCF multiple of 5x. What did the company end up doing? Closing their poor performing brands of course, causing the stock to jump accordingly. | 11/05/20 |
| Kathmandu | $0.53 | Cheap overall with a FCF multiple of only 10x for a brand that has recently garnered popular attraction for their wind-breaker jackets and vests. They can now leverage that brand value into other product categories. | 12/04/20 |
| Webjet | $11.50 | The company was posting slowing growth pre-pandemic and that spooked investors away, sinking the company to a FCF multiple of just 20x. The company had saturated the online flight booking market in Aus with a 50% share of all flights booked. What investors didn’t see was their booming B2B marketplace which was growing astronomically. At the buy-in price you were getting this segment for free, a segment that was already FCF positive, and composed half the company’s sales. Obviously it was a loser in the long-run as the pandemic crushed the company. This is one of those unforeseeable losses you just have to cop on the chin. | 11/01/20 |
| $17.50 | Pinterest was growing at 50%, and yet only had a sales multiple of 8x. In comparison, Snap growing at 48% had a sales multiple of 15x, Tinder (Match Group) had growth of 25% and a multiple of 14x, Twitter had growth of 15% and a multiple of 6x, and Facebook had growth of 25% and a multiple of 7x at the time. See a mismatch? Pinterest’s platform was also more e-commerce friendly, allowing it to take a cut of purchases made through them, they didn’t have the drama that the other social media platforms carried, and they had an audience which was in more of a shopping mindset, making them more valuable to advertisers. End result? Company tripled in a few months despite the pandemic. | 13/12/19 | |
| Pandora | 230dkk | After growing for years and the stock soaring alongside the business, it eventually came out that they were ‘channel stuffing’ – meaning they were forcing their franchisee’s to take more stock than they could sell in order to boost the company’s sales. In a franchise model, they book the sales once the company sells it on to franchisee’s, even if the stores can’t actually sell it. Obviously this approach isn’t very sustainable – the franchisee’s were going bankrupt, they had to sell product for cheaper and cheaper prices, and the brand lost its value as a result. A new management team came in and aimed to turn the ship around, and at a FCF multiple of just 10x, I figured the brand still had some value to it, definitely more so than a 10x multiple. Management turned the ship around and sent the stock to the 700dkk of today. | 27/09/19 |
| BasicNet | 4.28eur | The parent company behind Kappa and Superga was at a FCF multiple of just 8x, despite posting growth of mid-double-digits. The Superga brand was shining and Kappa was gaining traction. Wht investors missed is that they owned property worth 75mil euro which, when compared to their company value of just 350mil, was significant. This meant the FCF multiple was actually closer to 6x. Investors were realising the value in this company before the pandemic hit and crushed the stock. At current levels it still offers tremendous value, but due to its listing on the Italian Stock Exchange and its vague name, turns out this company is too hard for many investors to find – meaning its stuck sitting at a perpetual discount to its true value. | 03/09/19 |
| Domino’s Pizza Aus | $38.25 | Domino’s was crushed due to yet another short-term issue – a scandal of underpaying employees. The stock was smashed down to a FCF multiple of just 20x, for a company growing at 15% in the most recent year. This valuation paled in comparison to more mature and slower-growing brands like McDonald’s on a valuation of 30x FCF, and Starbucks on 40x FCF. What did management do to resolve the issue? They apologised and fixed the issue of course. | 21/06/19 |
| Raiz (Investing Platform) | $0.45 | Raiz is a platform which provides automatic portfolios which allow people to invest in stocks hassle-free. They charge a monthly fee of $5 and have grown spectacularly. At this valuation of $0.45 it implied that they only had to garner 500,000 users to their platform to justify the valuation. Yet they are in an Australian market with 10million potential users (20-40yo), and so the upside potential was massive with relatively little downside risk considering they already had 300,000 users. Lesson here – do your valuations. | 21/06/19 |
| Tesla | $38.10 | Musk, the genius, smoked an infamous joint on the Joe Rogan Podcast and that led to a SEC investigation which had Musk nearly fired from his own company. The stock absolutely tanked and Tesla was cheap as chips. While many investors focused on their growing losses and the difficulty of the automotive industry, they lost sight of Tesla’s main value – the brand. This sell-off had the company on a great valuation for anyone who could see that electric vehicles, and Tesla’s, were the future. We all know what’s happened since then with Musk and Co. | 24/05/19 |
| Experience Co, Aus | $0.25 | A skydiving company that was trading for less than the value of its aircraft alone, not even factoring in its FCF value. The company made some big investments in Tropical QLD which they over-paid for, and timed poorly, as the region had a tourism collapse due to decreased flights from China to the area. The stock never really went anywhere from there. | 23/02/19 |
| BWX (Sukin Skincare) | $1.20 | Stock was slammed as the management did some dodgy deals, made lots of unnecessary over-priced acquisitions, insiders sold a lot of shares, and then there was a failed take-over from a private-equity firm. This left the company with a FCF multiple of just 15x despite growing at 20%pa prior to management being distracted by their poor decision-making which left the core business neglected. Another classic short-term issue – eventually management were fired and replaced by people who re-focused on the core business and the stock soared accordingly | 11/01/19 |
| Apple | $39.20 | Apple had a quarter where their iPhone sales actually declined by a few percentage points, and this rattled the entire US tech sector in late-2018. Investor’s figured this was the end for Apple and the company hit a valuation of 11x FCF whilst sinking the rest of the Nasdaq in fear along with it. Obviously investor’s forgot the strength of the Apple brand, and as they turned to their services – News, TV, iCloud, Apple Pay – investors regained hope and the stock soared again. | 21/12/18 |
| Jianpu Tech | $29 | An online platform that connected Chinese consumers with the best lending rates from banks. They had huge gross profit margins of 90+% and were growing rapidly. Interest rates were declining, boosting lending. Everything looked rosy until the Chinese economy suffered its biggest economic slowdown in decades. There was also some involvement of the Communist Party which preferentially helped Jianpu’s competitors and send the stock a-crashin’. Lesson here – invest in what you know and stick within your circle of knowledge. | 14/12/18 |
| Shriro Holdings (Casio Australia) | $0.50 | The company has two segments – home appliances (Blanco, Omega), and consumer products (Casio watches, Pioneer DJ decks, Casio keyboards). When the housing boom cooled off, investors feared the worst and minor declines in the home appliances segment had the stock punished. Many investors overlooked the value of the consumer products segment which had FCF margins of 10% and solid albeit-minor growth of low-single digits percentages. Looking at the FCF of the consumer segment alone had the company on a FCF multiple of 3.5x – yes, 3.5x. Obviously way too cheap to exist, and yet held this valuation for about 1 year before investors woke-up in 2020 sending the stock up 100% in just a few months after a year of sideways movement. Lesson here – be patient. | 13/11/18 |
| Kogan | $2.80 | Stock was slammed as the management team sold a lot of their stake in the company. The founders were not well-off before this company which they started in their garage 15 years ago – could you blame them for wanting to finally see some cash? Investors ran scared and left it at a FCF multiple of just 20x despite growing at 25% in 2018 and being the main online shopping platform in Australia with little competition. What eventuated? The stock became the darling during the pandemic just over a year later and hit a $25 high. | 11/11/18 |
| Zip Co | $0.69 | Afterpay was crushing it and was receiving a ridiculous valuation for its work so far. Zip was entering the same buy-now-pay-later space – a sector which lacks any real protection from competition – and yet Zip was valued at a fraction of its rival. Zip managed to emulate Afterpay’s success and the stock soared. Using the relative valuation approach here paid off. | 10/11/17 |