Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Time To Strike A Holiday Bargain From The Channeladvisor

ChannelAdvisor Corporation (NYSE:ECOM) has announced a follow-on stock offering of 5 million shares. The stock is trading close to the highest levels since its initial public listing in May at $14. "Bull-Side" thesis is built upon

  1. "Cloud" based platform
  2. E-commerce driven growth as the of GMV on the platform grows
  3. Earnings Leverage to overcome any valuation concerns
  4. Scalability of a SAAS model

Results, after going public, are throwing light on the fundamental business issues overlooked in this "bull" bonhomie. Investors might and should strike a bargain out of this offering as the looming concerns have started to affect the numbers and may catch up with the stock going into the fourth quarter. This rising tide to concerns include...

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