Should I $GRAB and hold this diamond or cut it loose?
$Grab Holdings (GRAB.US)$ is basically a South East Asian Uber/Eats/Apple Pay/Instacart. The company recently $SPACs (BK2541)$ on the American exchanges a few months ago. It promptly crashed immediately after. I averaged down my position and have been holding it since making small amounts of profits to off set my loss on covered calls. As the share price continues to drift slowly downward I am becoming concerned.
I have done some DD on this company and I am incredibly pleased from a fundamentals perspective. The CEO seems to have a solid handle on their operation. They actually pushed Uber, their main rival out of their operating area and convinced Uber to take a stock offering for their SEA operations. The APP looks nice, intuitive and easy to use. The primary SPAC investors are in a lockup agreement for atleast 2 years out from the merger date and there are some other big names holding interest in the company such as Toyota, and Morgan Stanley.
The only real thing I don't like as an investor is their shares outstanding. 3.7 Billion shares outstanding and 2.58 billion free float. SI is incredibly low off the SPAC crash so shorts are no longer pressing down the share price it seems. The company does have a negative P/E, but it also has enough liquid assets to fuel aggressive growth for at least 2 years.
TL:DR I like $Grab Holdings (GRAB.US)$ but it's getting to a point I may exit based on technical exit plan. Fellow retards, what are your thoughts?
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jagger_ : Market cap 25b but only making 2b revenue,last year losses 2.7b ,so what do you think?
102315873 : I wouldn't say they pushed out Uber. It's more like Uber managed to put an end to their loss making operations by instead getting a huge stake in Grab's essentially for free, while Grab is left to continue trying (and failing) to turn a profit in this hyper competitive market. This deal with Uber is why Grab was forced to IPO so prematurely, as they would otherwise have to face a payout of $2 billion to Uber. Sounds to me like Uber actually came out with a better deal.
Carla Lee OP jagger_ : So I'm very confused, I don't know how to judge
Carla Lee OP 102315873 : Yes, I think so too