Jul. 16 at 7:14 PM
$GPN Good to see Elliott involved here. The fintech/payments space needs more activists - I mean much of it is cheaper than the banks in some ways and that makes no sense for most of them. The valuations of the likes of
$BILL,
$FLYW,
$RELY,
$PAYO to name a few are all way too low - as if there's no chance that their margins will ever go up with maturity - or perhaps through M&A. Why is there no M&A potential factored into these stocks is an open question, as many larger and more highly valued names could pay a huge premium for many of them. Here's a screenshot of a table with the lower valuations on ev/gp. Why are these names at 2-3x ev/gp when mature players like Fiserv or CPAY are at 9x. It's not like LT growth is bad in most of these stocks, occasionally just short term noise but many names are screaming buys if you think activism picks up with resultant M&A as an end game for the smaller names here. Table sorted ev/gp.
