In today’s briefing:
- 2022 On-Chain
- AvidXchange: How Mid-Market Can Save Money. Attractive Valuation and Low-Risk Entry Point
- Small Cap Idea: Diversey Holdings (DSEY)
- Weekly Liquidity Risk Short Candidates: Natera, Silk Road Med, Floor & Decor Hldgs
2022 On-Chain
- There are many different ways to analyse and understand crypto markets.
- On-chain analysis can be used to both understand a network’s fundamental health and provide some unique insights for potential investment opportunities over different time horizons.
- On-chain data in 2022 provided an interesting picture and offered a deeper understanding of the bear market that we sat through and hope for the future.
AvidXchange: How Mid-Market Can Save Money. Attractive Valuation and Low-Risk Entry Point
- AvidXchange is one of the leading providers of AP automation software and payment solutions for mid-market businesses and their suppliers. The company was founded in 2000 in the United States.
- With a large $20B+ TAM and valuation at ~5x FY23 revenue estimate of $392M – significantly below the average for software and payment peers – we believe shares are undervalued.
- Management raised the FY22 revenue outlook and expected a strong FY23. AvidXchange is two years from GAAP profitability, likely making the stock volatile in the coming years.
Small Cap Idea: Diversey Holdings (DSEY)
- Diversey Holdings is a provider of cleaning and hygiene products in the hospitality, healthcare, food and beverage, food service, retail, and facility management sectors.
- Their suite of solutions combines patented chemicals, dosing and dispensing equipment, cleaning machines, and services.
- Headquartered in the US, Diversey is a multinational serving more than 85,000 customers in over 80 countries with a network of 8,500 employees.
Weekly Liquidity Risk Short Candidates: Natera, Silk Road Med, Floor & Decor Hldgs
- Liquidity shorts can be great short candidates. The key characteristic is that the company may not be viable, economically, given their cash flows and cash requirements.
- Liquidity shorts have built-in catalysts, have moderate to higher betas, and can have strong down moves if a crisis develops. They can go bankrupt, pushing the stock price near zero.
- Today we are flagging Natera, Silk Road Med, Floor & Decor Hldgs
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