I was looking at WIX as a possible new position. I know Saul and others have positions although Saul’s is small. The company’s business seems easy to understand and has great potential with expanding ecommerce. With the recent drop, it seems to be attractively priced for its growth. But I don’t understand the risks including potential competition. I can’t find a recent discussion on WIX here. How might I search for such a discussion?
Dave
Hi Dave
Don’t take my word for it but Saul wrote in his answer to Bear’s Q3 earnings wrap-up post on Nov 12:
“I’m not as brave as Bear to have Wix as my 5th largest position. It’s actually my 10th, at 4.4%, although I also added some when it fell.”
So it looks like either Saul added to Wix quite some since his My portfolio at the end of October post when he had 1.2% or it is a typo
Of course he might have sold all since and he would be the first one to warn you not to buy a stock just because he did.
Just thought to note this, as i think you meant the 1.2% when you said Saul has a small position and not the 4.4%
Mk
Hi Dave
Don’t take my word for it but Saul wrote in his answer to Bear’s Q3 earnings wrap-up post on Nov 12:
“I’m not as brave as Bear to have Wix as my 5th largest position. It’s actually my 10th, at 4.4%, although I also added some when it fell.”
So it looks like either Saul added to Wix quite some since his My portfolio at the end of October post when he had 1.2% or it is a typo
Of course he might have sold all since and he would be the first one to warn you not to buy a stock just because he did.
Just thought to note this, as i think you meant the 1.2% when you said Saul has a small position and not the 4.4%
Mk
Thanks for the feedback! Yeah, I’m wary of buying purely based on Saul or Bear’s buy. I have to like the numbers, the overall thesis with enough upside to justify the risk and the price. These all seem reasonably good for WIX. But I also have to understand the risks as best possible. I’m not sure I do with WIX. I’m just not sure about their moat or competition. I’m a little leery about buying now since it’s been selling off on high volume. But I may nibble a bit as I learn more.
I’m much more diversified overall than Saul since I have a lower risk tolerance. My initial position is usually about 1% or less and then up to 2-3% if i have a stronger conviction. But I have developed a couple outsized positions in some stocks like NTES which is now about 9%.
Dave
I’ve found the easiest way to search for topics is to put the stock symbol and Saul’s Investing Discussions into Google’s search box.
It’s much easier than using MF’s search engine. A quick search brought up this post from the spring among others.
http://discussion.fool.com/my-take-on-wix-32689078.aspx?sort=who…
Raptor Dan’s post from late summer may also prove helpful.
Thanks for the tip Understudy. I’ll try it as i struggle with the MF boards a lot. I do not know about the others but since the Jan-Feb issues with the board post in the scorecard news section mine still does not work.
These all seem reasonably good for WIX. But I also have to understand the risks as best possible. I’m not sure I do with WIX. I’m just not sure about their moat or competition. I’m a little leery about buying now since it’s been selling off on high volume. But I may nibble a bit as I learn more.
Dave,
I don’t want to tell you what to do but I’ll tell you why I’ve increased the number of shares I hold by 49% in November.
Since I’ve started following Wix in April, they’ve gone from about 2,500,000 paying users (as of the end of 2016) to over 3,100,000. Furthermore, Wix has 114,000,000 registered users so only about 3% are paying users. That’s a lot of free sites that could potentially become paying sites. 14 million of the free sites have sprung up in 2017, so there’s constantly a huge influx of potential customers.
And their pricing is not exorbitant. The CEO stated on Cramer than people use Wix along with Etsy and other platforms. Wix is the kind of thing were you can host a website for a very small business, or even just for fun.
So I guess what I would say is that they have competition everywhere…and nowhere. There are zillions of sites that help people create websites, but Wix is one of the ones that is working really well. It’s not a winner take all game, at all.
I think the sell off is due to a lot of misunderstanding. I explained my theory on that here: http://discussion.fool.com/overall-i-liked-the-quarter-no-slow-d…
I know you have some links to read, but I’m also happy to discuss Wix further – I think it’s a very undervalued stock right now relative to others we discuss here.
Bear
I’ve found the easiest way to search for topics is to put the stock symbol and Saul’s Investing Discussions into Google’s search box.
It’s much easier than using MF’s search engine. A quick search brought up this post from the spring among others.
http://discussion.fool.com/my-take-on-wix-32689078.aspx?sort=who……
Raptor Dan’s post from late summer may also prove helpful.
http://discussion.fool.com/best-of-32822686.aspx
Thanks understudy! This helps a lot!
I know you have some links to read, but I’m also happy to discuss Wix further – I think it’s a very undervalued stock right now relative to others we discuss here.
Bear
Thanks Bear! Your insights are very helpful. I think I will start a position soon, not a large one but a decent size which I can build on over time if it’s still looking good.
I’m not sure if I mentioned this before but I was born in Alabama and I’ve always been a huge fan of the Bear!
Dave