“If you’re someone sitting on the sidelines, we don’t see any reason why you wouldn’t consider going long Bill Holdings (BILL).” That’s what we concluded this past April in a piece titled Bill: A Financial Process Automation Leader. At that time, BILL traded at a reasonable simple valuation ratio of seven. Following their latest earnings report, the stock has dropped 30% bringing BILL’s SVR to around 5 which happens to be right in line with our catalog average. (Our recent tech stock catalog update saw the average drop from 6.5 to 5 as growth stocks become less appealing in the face of ye olde macroeconomic headwinds.) Today, we want to make sure that BILL’s bad earnings report is an opportunity, not a trap.
Alerts on Price Movements
<Puts sales hat on.> One of the many perks for Nanalyze Premium annual subscribers is that they’ll receive alerts when stocks we love or like drop 15% or more in a single day. Sometimes when after-hours trading implies a stock will open significantly down, we have the luxury of burning the midnight oil and producing an article instead of an alert. More time to research gives us more confidence in what we communicate, and we’re always trying to answer one simple question. Is this dramatic downwards price action a sign of systemic problems creeping into the picture, or just a knee-jerk reaction from fickly Wall Street analysts whose short-term viewpoints mean very little in the bigger picture?
