Author Topic: GBYN - Grid Dynamics  (Read 376 times)

Broeb22

  • Sr. Member
  • ****
  • Posts: 399
GBYN - Grid Dynamics
« on: March 23, 2020, 07:22:46 AM »
I took a small position in this one recently.

A small IT outsourcer similar to EPAM and DAVA with similar organic growth metrics of 30%+ in recent years in a market growing 20%+.

They are priced at about 20x earnings which no one will say is cheap in today's market, but when you consider how small they are and the likelihood (perhaps possibility) that they provide 25%+ returns from a fair valuation for a number of years, it's attractive to me.

They have $75 million of cash and no debt, and in this environment where high fixed costs can kill you, their main asset is their workforce which can scale up or down based on volume of work.

The main risk I see is customer concentration, and their stated focus on retail and technology. If retail is shutting down, they may not be investing in high-level computer programming. At the same time, I could argue when eCommerce is the only game in town that computer programming is the ONLY thing you should be investing in.

Anyways, it's spiked today, but I think it's worth a look.
« Last Edit: March 23, 2020, 12:18:49 PM by Parsad »