RE:RE:newest release on FD.VGreendaze,
While I think FD's mission and goals are admirable, I believe everyone here needs to be careful particularly in the short/medium term, as to the current valuation.
There are a lot of great press releases and news stories, partnerships re: Foodora and Partner Programs and TraceScan -- but this stock is current anything but undervalued.
Bravo to those of you who have managed to ride it up to the current valuation, it's clearly got strong insider ownership, is tightly held and as such has a small float -- all great signs.
It's just that I believe the stock (not the company) has gotten fairly far out ahead of its skis and if the momentum fades, it is very likely this stock will head back to a more grounded valuation.
Back on June 4th, I posted about valuation
here, as that is about the time I decided to exit my position in FD. My concerns were re: valuation and the actual revenue market opportunity to support it.
I know valuation gets thrown out the door with growth and momentum investing, but at some point numbers need to meet expectations. Currently the company is valued at 9,000x sales.
Even with 1000% growth factored into 2020 (which isn't unreasonable), we're still at 450x sales for future revenue.
Feel free to ignore what I have outlined above, as clearly I was wrong about where FD stock could go before. But I cannot wrap my head around the risk/reward at these levels and couldn't help but throw in my 2 cents to present a different perspective when I read that it is currently undervalued.
Value has nothing to do with where this stock is at, it is a momentum play. Good luck to those of you who continue to ride the wave.
Sampo