Asset Manager Investing in Global Technology Sector

We're an asset management firm allocating our capital into asset classes benefiting from technological innovation and applications globally. We serve as a family office of a tech professional who has spent over a decade as an entrepreneur, operator, and venture investor across Asia and the US.

Our small team is made up of diverse investment professionals who research, identify, and execute relevant opportunities. We occasionally share some of our investment memos, insights, and analysis here.

Tuesday, May 26, 2020

Q2.2020 - Casper Sleep: Don't Underestimate

Casper Sleep (NYSE:CSPR) is another technology startup that did not have a successful IPO in recent times. The timing was also unfortunate, considering the recent WeWork IPO saga, which would lead to more skepticism and scrutinization in future technology IPOs. Casper is now trading at merely $6.6 per share, down ~45% from its IPO price of $12 per share, following the impact from the COVID-19 outbreak that forced the company to furlough many of its retail staffs. Some of the negative sentiments have been on point, considering the company's unprofitable situation today. However, we believe that investors should not underestimate the business's long-term potential.

Following the disappointing IPO and COVID-19, shares are now down ~45% from its IPO price per share. Despite that, we see long-term upside potential in Casper, driven by its disruptive positioning in the sleep economy. Revenue has more than doubled since 2016, while profitability has improved in recent times. The company has good governance, a disciplined growth approach, and a continuing focus on sleep product innovation. At ~0.16x P/S, the stock is a bargain.

Read the original article here
at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)