In today’s briefing:
- Overearning Short Candidates: Builders FirstSource, IBM, Forward Air Co, Deere & Co.
- Osome Rakes in US$25M Series B to Grow Its Accounting Solutions Beyond SG
Overearning Short Candidates: Builders FirstSource, IBM, Forward Air Co, Deere & Co.
- This model seeks companies that are potentially “overearning”, defined as companies with unusually high margins relative to their own history or relative to the industry.
- The reasons for the margin increases are sometimes unsustainable or fraudulent. The critical judgement involves to what extent unsustainable margins are embedded in a company’s forecasts and/or the stock’s valuation.
- These shorts tend to have moderate to higher betas, higher valuations due to recent strong results and good short responses to subsequently disappointing earnings.
Osome Rakes in US$25M Series B to Grow Its Accounting Solutions Beyond SG
Osome helps SMEs set up through a simple platform with easy-to-use software and an expert accountant to take care of financial admin
- Singapore-based Osome, which has developed an accounting and corporate compliance app for small and medium enterprises (SMEs), has raked in US$25 million in a Series B round
- The firm plans to expand its Asia operations, primarily in Singapore and Hong Kong
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