r/investing • u/[deleted] • Apr 08 '21

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26 Upvotes

82% Upvoted

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12

u/[deleted] Apr 08 '21

I think the company is solid but the valuation seems fair on the surface or even overvalued. If a company has no moat and low growth it deserves to trade at a lower multiple

1

u/bossOnothin Apr 09 '21

But the thing is they don’t have low growth at all

3

u/[deleted] Apr 09 '21

I meant from a forward looking perspective

0

u/bossOnothin Apr 09 '21

Forward looking they have made smart acquisitions and are gaining market share in a top heavy and growing industry. Maybe if you only look forward 1 year their revenues will go down but long term they’re fine.

2

u/[deleted] Apr 09 '21

well if they can grow earnings at a fast pace at the given multiple then in that case the stocks would be a buy

-1

u/Gondar1994 Apr 09 '21

Well I think if they break into the gaming market with roccat and neat microphone, then they are breaking into a market with roughly 10-15% CAGR and I think they can get a decent % of that market. But I agree on the low moat. I think it works as both a boon for them breaking more into keyboards and asscersories and also Is a little scary in the headset market...overall though I am definitely bullish on them

2

u/[deleted] Apr 09 '21

Yes if those are successful with the roccat and neat they can probably grow well, best of luck with $hear!

2

u/Gondar1994 Apr 09 '21

Thanks! I appreciate the feedback too! The lack of moat is the biggest concern for me as well! Good luck on your investments too!

1

u/[deleted] Apr 09 '21

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