20-Nov-2020: Ausbiz: "The Call" - Stock of the day - Redbubble (RBL)
RBL closed at $4.97 +0.43c (+9.47%) on Friday (20-Nov-2020) on their "New CEO" announcement.
From Ausbiz (on Friday): Global print-on-demand online marketplace, Redbubble (RBL), has had a change in the big chair with former Seek exec, Michael Ilczynski who will replace Founder, Martin Hosking, who will now focus on the company's philanthropic efforts. RBL's sales have surged during he pandemic, with gross profit for Q1 surging 149% on Q1 FY20.
Today on The Call, Kochie asked his guests, Jun Bei Liu from Tribeca Investment Partners and Adam Dawes from Shaw and Partners for their views on RBL. Jun Bei likes the company although she thinks it is something of a speculative stock.
"It's expensive and it's been growing really fast and it's absolutely been the COVID beneficiary, given people are buying masks and doing e-commerce related things.
"But I like it because the company has done very well in terms of broadening out its product range... they make a very good margin out of the products that they do. The company is trading on a free cash flow yield of 4%. This is very rare for [stocks in] the tech space."
Adam also likes RBL as a speculative prospect and the fact that it has had a recent pullback.
"It hit some highs and it's come back to $4.85. It jumped today on the announcement of that new CEO. It looks interesting.
"Most of the sectors that are contributing to [market] growth have grown over 100% year-on-year. Despite [the sales of] face mask slightly pulling back over July and through to September... their margins are fantastic."
--- click on the link at the top to view and listen to the entire conversation (this is just a sample from it) ---
--- the other 10 stocks covered on this episode of Ausbiz' "The Call" were WHC, TLT, AGH, FXL, DOU, SLC, COL, ELO, URW & OML ---
[I do not hold shares in any of those 11 companies.]
[Edit: I do hold IFT (Infratil Ltd) and IFT holds 65.6% of TLT, so I do have indirect exposure to TLT. Jun Bei and Adam were not keen on TLT, however they were more positive on IFT - which was added to "The Call Portfolio" in October.]
