Further stock action on 28 Feb 2020 and The Trade Desk
Added to Alibaba and Link Reit in Hong Kong yesterday, 28 February 2020 with the cash held in the fund; the portfolio page has been updated.
I tried to buy back into adding to The Trade Desk in the US after their results yesterday but their share price never reached my execution price.
I find it hard to value The Trade Desk with respect to how big this company will be in five years’ time. Their software platform is the undisputed leader of demand side digital advertising analytics. Their current annualised revenue is US$661M, growing at 30%+ annually with an operating profit margin of 30%+.Their annualised earnings per share based on their last quarter, projected for the next 12 months would be US$6 but they consistently beat expectations on their revenue and earnings estimates but again, a normalised PE ratio of near 50 on 2020 forecast normalised earnings is way above my usual stock pick ratios hence my small position which got smaller this week. Nevertheless, this is a brilliant business with strong management, addressing the global advertising market as it goes through rapid transformation to digital. If the stock goes to my execution price at US$256, I will add to my holding as its addressable market is many times its current revenues.
About Post Author
Billy
After qualifying as a chartered accountant in the UK and working in London for a leading technology company, I moved to Hong Kong in 2000 where I am a permanent resident. I was the original founder of globalstockinvestingtoday.com where I presided over my portfolio during the 2008/9 financial crisis and posted my portfolio actions and performance with a number of his ex Nortel colleagues and friends until 2013 where due to work commitments at BT meant that I could not continue with this site. My 5 year portfolio performance during that time beat the benchmark stock indices of UK, Europe, India, Hong Kong,Australia, Brazil and Japan but not the S&P 500 nor the NASDAQ. My performance was also better than the global mutual funds that were benchmarked except for Value Partners in Hong Kong where we exchanged leads during that time.