Share price fall: Its very common for share prices to fall a lot, I have seen Inmode falling from $100 to $20 without any deterioration in business quality. So this fall doesn’t seem too much.
Dividends: I dont know why most of NASDAQ cos do not pay out dividends, despite generating high cashflows. That being said, InMode does regular buybacks and has bought back $95mn worth of shares in last 3 years, which is 22% of their freecashflows over these 3 years. This is in-line with most growing cos, I prefer them to reinvest most of their capital in their business.
R&D: They spend $10mn on R&D each year, they have kept the absolute spends constant in last 3-years, while growing sales from $200mn in 2020 to $500mn now. Thats why % spends look lower.
Acquisition: Its hard to make a generic comment on it, let them do something first before making a judgement on it.
I have been regularly buying Disney shares, I do feel its very undervalued. Over time, risk has reduced significantly in Disney as they have invested in building their streaming business and diversified beyond their linear TV business. Currently, market doesn’t like streaming cos, but just 2 years back market thought that streaming cos will rule the world. Over a longer period of time, its content which will make the difference. Whatever the distribution medium is, content will find a way to get monetized as long as customers want to see that. I feel Disney has one of the most precious contents, and they continue investing in that. Park is a decent business, and is currently doing very well.
I am finishing up my work on Stellantis. I will likely buy it soon, its crazy cheap!
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