Hopefully, you were able to take advantage of the BellRing Brands & Build-A-Bear stock when I first mentioned them. You could have gotten a decent return in a short amount of time. If you think there’s a case for a long term hold in either one of those companies, please share.
Now to Shutterstock. Another company that showed up on my screen as a potential investment. It’s currently trading at $5.72. I took a position at $5.40. My high-level analysis has it worth between $10 & $14. I will start my deep analysis and plan to increase my position depending on the results of the upcoming earnings call.
When I analyze a company I like to understand investors pessimistic outlook. I categorize them into fundamental and non-fundamental. What’s interesting about Shutterstock is that this is their first quarter loss of operating profit in the past 10 years. So what I’m trying to analyze is if the company has a cold, the flu, or terminal pneumonia.
**Fundamentals**
Double digit drop in revenue
Core content segment decline 12%
Subscriber contraction
Heavy net losses
Shrinking operating cash flow
**Non-Fundamental**
Termination of merger
C-Suite turnover
Suspension of dividend
Legal liabilities
Non-operating investment volatility
What do you think the company is suffering from?