petekarici
Investment thesis
Our current investment thesis is:
- JET has scale and capabilities in 3 of the 4 largest markets in its industry. The general market trajectory is strong, and product development is only improving this.
- JET is beginning
Just Eat Takeaway.com: Industry Profitability Is Uncertain
Summary
- JET has achieved impressive growth through geographical expansion and acquisitions. Although growth is slowing, in part due to economic conditions, its trajectory remains positive.
- With significant exposure in the UK&I, Northern Europe and the US, JET is positioned well to benefit from key growth regions.
- JET remains unprofitable and its route to attractive profitability is materially uncertain. We believe the current nature of the delivery industry is highly unattractive.
- The sale of Grubhub remains uncertain, with the company struggling to find a buyer.
- JET stock is cheap compared to its historical valuation but we would like to see a clear view of future profitability before considering a buy rating.
At the heart of our strategy lies a commitment to unearthing hidden gems through meticulous, bottom-up fundamental analysis. We focus on undercovered stocks and interesting ideas, seeking to tell compelling stories and reveal the hallmarks of enduring quality.Our approach goes beyond numbers—we delve deep into the core of each company, identifying strengths that promise long-term success. Through rigorous and disciplined valuation analysis, we ensure that every investment aligns with sound financial principles, steering clear of the fleeting whims of market sentiment and short-term gains.“Day to day, the stock market is a voting machine; in the long term it’s a weighing machine.”
Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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