This company’s share price and value have been ‘in a zone’ for 3 months since last big run up after last quarter’s earnings report. Not much news out there; presentation at a conference, limited analyst reporting, and some new help to travel services in their advertising. I am thinking the zone and valuation are uncoupled with the growth in revenue and earnings. Next week, 2/18, is quarterly reporting. Now, is seeming like a good time to increase the position, possibly with some profits from others that have run ahead in the last few weeks.
Sound-boarding and waiting for resonance,
KLVanLiew
Criteo’s share price and value have been ‘in a zone’ for 3 months since last big run up after last quarter’s earnings report.
Hi KL,
I agree, CRTO has been in a narrow zone, and their earnings will be up a minimum of 100% (from 13 to 26 cents - last quarter they made 27 cents, up from 12 cents, and Dec quarter tends to be larger for an advertising company). However, be aware, that they are are at a pretty high PE, and if they do come in a 26 cents, they will have trailing earnings of 87 cents, and at the current price of $40.28, they will have a trailing PE of 46. (Of course, earnings per share were up about 300% in 2014, and if they are up just 100% in 2015 their PE will drop from 46 to 23.)
You may recall that I did a bit of portfolio cleaning around mid-Jan and had some cash sitting around. With that cash, I have since added to my positions in EPAM, CRTO, PRLB (prior to earnings), and CHUY. I like CRTO quite a bit and it’s around 2.2% of my portfolio, so it’s about an average sized position for my portfolio with 48 positions.
I also have written puts to look at adding at better value points.
I really like CRTO for the long run… I did a bit of portfolio cleaning around mid-Jan and had some cash sitting around. With that cash, I have since added to my positions in EPAM, CRTO, PRLB …and CHUY. I like CRTO quite a bit and it’s around 2.2% of my portfolio, so it’s about an average sized position for my portfolio with 48 positions.
Hi Anirban, Yes it’s about 6.8% of my portfolio, which is a tad above average also, with 16 positions in my portfolio. I also like it a lot, but wouldn’t go much bigger with a stock with so much future expectation baked in.
Saul
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Yes it’s about 6.8% of my portfolio, which is a tad above average also, with 16 positions in my portfolio. I also like it a lot, but wouldn’t go much bigger with a stock with so much future expectation baked in.
That’s spot on advice. I couldn’t agree more. There’s a lot of expectations baked into CRTO’s valuation and a small stumble could see the stock crashing down.