Analysis on GARP with strong economic moats, Moat Investing

Moat Investing

Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

Equity Bottom-Up

Herbalife Ltd. is a global nutrition company that sells weight management, healthy meals and snacks, sports and fitness, energy and targeted nutritional products as well as personal care products. The Company distributes and sells its products through a network of independent distributors, using the direct selling channel.

<ul>
<li>Herbalife has a strong position in the wellness industry, with net sales of $5.2b in 2022 and a market cap of $1.46b.</li>
<li>The company was founded in 1980, and it employs an estimated 9,900 people worldwide.</li>
<li>First, the company has a strong brand name and loyal customer base, which can support long-term growth prospects for Herbalife Nutrition (NYSE:HLF).
</li>
</ul>


Herbalife has a strong position in the wellness industry, with net sales of $5.2b in 2022 and a market cap of $1.46b.
The company was founded in 1980, and it employs an estimated 9,900 people worldwide.
First, the company has a strong brand name and loyal customer base, which can support long-term growth prospects for Herbalife Nutrition (NYSE:HLF).



Herbalife Nutrition: Controversial But Undervalued

Meta Platforms (Facebook) / Equity Bottom-Up

Meta Platforms Inc. operates as a social technology company. The Company builds applications and technologies that help people connect, find communities, and grow businesses. meta Platform is also involved in advertisements, augmented and virtual reality.

<ul>
<li>Meta announced its Q4 earnings, exceeding expectations on the top line by 1.5%, but falling short on the bottom line by 20.8%.</li>
<li>The key highlights from the announcement included an increase in share buybacks, reductions in capital expenditures, and a lowered outlook for operating expenses.</li>
<li>Since the release of new earnings by Meta (NASDAQ:META), we have been following up on our last report, which got a very positive response.</li>
</ul>


Meta announced its Q4 earnings, exceeding expectations on the top line by 1.5%, but falling short on the bottom line by 20.8%.
The key highlights from the announcement included an increase in share buybacks, reductions in capital expenditures, and a lowered outlook for operating expenses.
Since the release of new earnings by Meta (NASDAQ:META), we have been following up on our last report, which got a very positive response.


Meta Platforms: Q4 Earnings Update, Our Approach Now

Lumen Technologies, Inc. provides digital solutions for home and business premises. The Company offers communications, network security, cloud solutions, voice, and managed services. Lumen Technologies serves customers worldwide.

<ul>
<li>Lumen with a Buy Rating: Anticipating Near-Term Rally. Lumen's new CEO Brings a Track Record of Growth.</li>
<li>The company's focus is on Fuel Core Business Development.</li>
<li>Lumens' new CEO has a track record of growth and a track Record of growth for the company.</li>
</ul>


Lumen with a Buy Rating: Anticipating Near-Term Rally. Lumen's new CEO Brings a Track Record of Growth.
The company's focus is on Fuel Core Business Development.
Lumens' new CEO has a track record of growth and a track Record of growth for the company.


Lumen Technologies Turnaround: Navigating The Risk For A Great Potential Reward

<ul>
<li>META’s sustainable earnings come up with at least 30% to 35% upside potential.</li>
<li>There is a huge margin of safety at the current price, and multiple should expand from now forward.</li>
<li>Meta Platforms, Inc. (NASDAQ:<a href="https://www.smartkarma.com/search?q=META" target="_blank" rel="noopener">META</a>) is one of the most beaten-up stories among the FAANG, the storytelling around the Metaverse has failed to be understood by the market, and a great deal of pessimism and future catastrophic scenarios have been priced into the stock.
</li>
</ul>


META’s sustainable earnings come up with at least 30% to 35% upside potential.
There is a huge margin of safety at the current price, and multiple should expand from now forward.
Meta Platforms, Inc. (NASDAQ:META) is one of the most beaten-up stories among the FAANG, the storytelling around the Metaverse has failed to be understood by the market, and a great deal of pessimism and future catastrophic scenarios have been priced into the stock.



Meta Platforms: A Value Opportunity In The Tech Environment

MercadoLibre, Inc. operates an online trading site for the Latin American markets. The Company's website allows businesses and individuals to list items, conduct sales, and purchases online in either a fixed-price and auction format. MercadoLibre offers classified advertisements for motor vehicles, vessels, aircraft, and real estate, as well as online payment services.

<ul>
<li>Q4 net revenues: $2.1 bln (60.5% YoY and 73.9% YoY on an FX neutral basis). Growth was led by the Fintech division (+70% YoY).</li>
<li>Gross profit came in at $853.2 mln (40.0% gross margin from 36.8% in Q4 2020) and Income from operations reached $23.3 mln (a loss of $25.1 mln in Q4 2020).</li>
<li>FX losses were $56.9 mln mainly due to the buyback of shares in Argentina. The Net loss was $46.1 mln equal to a negative EPS of $0.92.</li>
</ul>


Q4 net revenues: $2.1 bln (60.5% YoY and 73.9% YoY on an FX neutral basis). Growth was led by the Fintech division (+70% YoY).
Gross profit came in at $853.2 mln (40.0% gross margin from 36.8% in Q4 2020) and Income from operations reached $23.3 mln (a loss of $25.1 mln in Q4 2020).
FX losses were $56.9 mln mainly due to the buyback of shares in Argentina. The Net loss was $46.1 mln equal to a negative EPS of $0.92.


MercadoLibre Q4: Sustainable Alpha For The Long Term