Not sure if anyone here is still invested in ELLI – I know Saul exited when he was looking to raise cash – but it’s still one of my favorite long-term investments. The company continues to perform well, releasing solid quarterly results despite the mortgage origination market being cut essentially in half, and has added yet another acquisition today that continues to expand its ever-widening moat.
I am still in ELLI and plan to hold for a while. I know it has had a very good quarter, especially in new customers. Additionally, the Customer Direct product and the recent acquisition are all very positive in the long run. But I am a little puzzled by the recent share price upswing. In the recent volatile market, many growth companies with good Q2 reports don’t see sustained share price upswing. ELLI seems to be going against the trend. Is there something else coming up or did I miss something big in its earning report?
I still own ELLI with you and am also looking to complete my tables and graphs to see if/when it is deserving of additional investment. As you said, performing well even against headwinds, acquiring/consolidating/ selling within the industry, and helping turn a technology corner for the RE market. (wouldn’t it be nice if we have a Z twin, WOULDN’T IT BE NICE!)I think they have quite a growth runway ahead of them and they seem to be on the correct path.
Here’s hoping for a cargo hold full of mortgage transactions slated for overnight delivery,
Still long and strong - agree with you on the size of their moat! Still waiting to see what they can do when the mortgage origination market turns around.
But I am a little puzzled by the recent share price upswing
I’m terrible at predicting how the market will react to earnings or some piece of company news: things I think are clearly obvious cause wild swings, while the market often yawns at things I think are big or important news.
But having said that, the stock has basically gone nowhere for the past couple of years – just bounced around (with a few scattered periods of intense speculation thrown in when the buyout rumors were circulating) – and my guess is that the market has been taking a “wait-and-see” approach to how changes in the mortgage industry would impact the company. So it could be that a big part of this latest upswing is simply due to investors realizing that the company is going to continue to grow, consolidate, and be successful despite fewer mortgage originations. I thought that was pretty obvious after last quarter’s results, but who knows.
I held on and am back in the black on this one. I think the company is providing a really useful service, but it will vary with the housing market and loan originations.
Not sure if anyone here is still invested in ELLI
Yes, I had bought a covered call on Elli and own it under $25. Very happy with the progress and am thinking of doubling the position.
Do you have a add on price or some metric you use to determine when to buy more?
A lazy, non-mathematician