Part of learning how Saul picks stocks, for me, is also being able to find my own stocks out there. One of the ones I have mentioned in posts, and has been talked about a little by others is…Toast (TOST)
I have been following it for a while and started building a position for the last year’ish. I finally started building out my position because I see it at EVERY restaurant in the NE and the staff I talk to like it. The numbers are pretty good and while I see some slowdown, the numbers are still pretty good.
This past quarter they even turned a PROFIT!!! (Woo hoo.) The expect FY numbers to show profitability as well for first time in company history.
What am I missing? Why is the market so upset with them?
Numbers as I have them:
So they have ARR at over a BILLION a year now and they added a record number of customers at over 7000 new locations.
As of right now the whole position I have is -20% and they are down from ~$27/share this year to ~$18 now. That’s over 30% off on a company that had good numbers. What the heck?!?!
This all started as I have been considering cutting that position with the scalpel that Saul has taught us to use, but once I got back into the numbers, it still looks good?
Last IR presentation (slide 15 will show that hardware is barely a blip on what they do now a days) - https://s28.q4cdn.com/141746709/files/doc_financials/2023/q2/TOST-Investor-Presentation-Q2FY23.pdf
What am I missing, why should this be cut or why should this be kept. I am almost talking myself into keeping it all for one more earnings season?