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Portfolio update - 20th of December
I hope you all had a good week behind you. I am updating you regarding my portfolio and the changes that were made in the last week.
This week I have added to my positions on two portfolio companies: Alibaba (BABA) and Blue Prism (PRSM).
1st Alibaba (BABA)
I added to my Alibaba holding as I like the company's long-term story and path and believe recent negative political events are priced in the stock. Investors have been selling this stock in the last weeks violently since the failed IPO of Ant Financial because of regulatory challenges in China.
In essence, I added to the position as I find Alibaba at its current levels a good price point to increase my exposure to this e-commerce, cloud, and fintech giant. I believe Ant Financial will at a later time still do the IPO, and the stock will get positive tailwinds when the news comes in. Also, the growth rate of its e-commerce and cloud business is not slowing down, and they are in a perfect position to continue dominating the Chinese market. It fits well into my “China Tech” part of the portfolio together with JD.com (JD).
2nd Blue Prism (PRSM)
I have added to my position in the Robotic Process Automation software company Blue Prism. I have owned the stock for quite some time now, and the stock has recently started to price up. The main reason I added to my position is the fact that I like the RPA space for the long run, and I find Blue Prism a good value when looking at their valuation and growth rate. I also picked the time to add to my position this week as their direct competitor UiPath filed for an IPO. I believe there is a bigger chance that the stock in the next weeks can go through a revaluation process and rise in price (because of the UiPath IPO and the analysts that will look into this sector). Although no information is out yet, UiPath is rumored to have somewhere between $400-$500 million ARR while Blue Prism has around $200 million. UiPath is believed to price the IPO in the $20 billion range, which would value the company at 40x Sales. Blue Prism is valued at around 10-15x Sales. Even though UiPath is in a stronger position than Blue Prism, I believe the valuation gap should not be that big. A few weeks ago, there was also some news that Blue Prism was considering listing its stock in the US (currently, it’s in the UK). If PRSM did the US listing, I think the valuation would increase drastically.
Going forward, I will be closely analyzing the UiPath IPO as I like the RPA space and might, depending on the numbers and valuation, buy into UiPath as well.
I will keep you updated on any changes and share with you in the analysis of my portfolio companies and companies that are on my target list.
Have a great week!
Current portfolio positions in random order:
PINS, PRSM, FB, DIS, ETSY, ESTC, BABA, JD, DBX, BA
I will also share my “Target List” of stocks that I am following closely from now on. I either owned these companies in the past and sold them because of valuation or other reasons, but I still find them interesting in a long-term portfolio. They can also be companies that I find interesting and might add to my portfolio when something fundamentally improves or the valuation changes.
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