UpWork Inc. (NASDAQ:UPWK) recently appointed Jeff McCombs as its new Chief Financial Officer. Now imagine that you are Jeff. You want to get a solid understanding of the business model, the drivers of value creation and profitability. A good place to start is to look at the income statement over the last few years. UpWork … Continue reading Is UpWork Profitable?
From most value investing metrics, the stock of Gamco Investors (NYSE:GBL) looks dirt cheap. Based on the trailing twelve-month earnings per share, GBL trades at a Price-to-Earnings ratio of about 5.3: 2Q20$0.421Q20$0.424Q19$0.913Q19$0.50EPS (TTM)$2.25Share Price12.11P/E Ratio5.38 If we use the 2019 Earnings per Share, the trailing P/E is about 4: 4Q190.913Q190.502Q190.881Q190.70EPS (TTM)2.99Share Price12.11P/E Ratio4.05 The operative … Continue reading Is Gamco Investors a Value Trap?
Imagine the following: You get a call from an investment banker you are acquainted with. He chirpily informs you that you are in for a treat. It just so happens that due to circumstances, he is in the know of two companies that are in play. He goes on to tell you, that not only … Continue reading On Goodwill Hunting & Hidden Value
In 2012 Robert Novy-Marx wrote the paper The Other Side of Value:The Gross Profitability Premium. You could say that it is an attempt to test the hypothesis of Charles Munger and Warren Buffett that it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price. The Gross … Continue reading The Profitability Factor