PRTH
A Fintech Play or Payments play
Added more today on the freefalling stock price at $5.44, clearly not low enough.
They earned an adjusted .28 this quarter which was about what I expect given guidance, I expect about .30 Next quarter. Which will put earnings around $1.07 or so for the year, hence the stock is trading at just 5x times earnings. In the CC they gave sought of guidance that top line will grow high single digits again next year, and they should have expanded adjusted gross profit margins of if I heard correctly 75-100 BPS. Which mean we have a growing revenue story combined with a growing margin story. I think they Will do about $1.25-1.35 next year based on those numbers. Hence I find this reaction absurd.
The market is upset because of the slight lowering of rev guidance, but they are still growing and talked about revenue picking back up in October after a bit of a slowdown late in the quarter seems like a common theme I have heard in many CC. Anyways I think A company That grows the top line line high single digits, and can grow the bottom line significantly faster through continued margin expansion is worth more than say 4x next years estimates. But what In the world do I know the stock is down 25%, thankfully they didn't lower guidance on eps, the stock might of been down 50% maybe more. Geez I can pick them. All is just my opinion, and I could always be wrong though.
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