$Altimeter Growth Corp (AGC.US)$$Grab Holdings (GRAB.US)$ Fi...
$Altimeter Growth Corp (AGC.US)$ $Grab Holdings (GRAB.US)$ Fistly, given its current performance, I expect the Grab to fall below $10 once the the merger happens. Of cuz there'll be a short spike due to announcements but will eventually break the $10 floor. Not because it's a bad business, but because of its valuation. Eg, It is valued 10x more than uber based on Price to sales ratio. Hence, I stay away from it for now.
Secondly, I still like the business, much like coupang (CPNG). I like the businesses and use their services extensively, but I can't invest with these valuations. In coupang's case, it was around $50 when I covered it, we expected it to drop below $30 to $20-25 due to its valuation, not the business. No one expected it to happen as it was a good business, but it did.
So I'll be patient and wait before buying into these companies.
Early on we suggested to invest in Grab because of the reported earnings. However, it turns out majority of the earnings are contributed from incentives received. That changed the entire investment value proposition on Grab.
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GM 1 : Crappy founder
Corinne Martain : ince you've invested in CPNG, do you have a view on what ails SKorean stocks. It seems like the best of their stocks, like Samsung, SKHynix, etc are all in deep trouble?
flukshun : Actually the outlook quite gloomy. The stock market increase not due to fundamentals (except for a handful of tech companies that benefited from the pandemic) but the price mechanism (too much cash chasing assets).
Just watch the interest rates and the tapering. It'll spark the downturn.