The buyback observation is really fascinatng. When you consider that Lou originally spotted NVR through their aggressive buybacks and PYPL is now doing the same thing with 20% of market cap earmarked for repurchases, the pattern becomes pretty clear. What I find particuarly compelling is the combination of all these factors hitting at once: new CEO cleaning house, free cash flow generation still solid, and the stock trading at levels not seen since before the pandemic despite doubling revenue. The fact that he waited 7 years to buy TGS-Nopec shows he's not rushing into PYPL without a clear catalyst. Do you think the Q3 earnings will show enogh progress on Chriss's turnaround plan to justify starting a position?
The buyback factor is indeed really striking, especially since the other position he started in Q2 was Crocs, yet another company that has announced a buyback program to retire 30% of their shares.
Q3 earnings for PayPal were quite strong, and the stock was initially up more than 15% but then lost it all again in the next days. Seems like the market is not yet convinced of the turnaround.
I'm curious to see Lou's 13F for Q3 (should be out in the next 2 weeks), but at the current valuation and with strong and even improving fundamentals, I think PayPal is very attractive.
The buyback observation is really fascinatng. When you consider that Lou originally spotted NVR through their aggressive buybacks and PYPL is now doing the same thing with 20% of market cap earmarked for repurchases, the pattern becomes pretty clear. What I find particuarly compelling is the combination of all these factors hitting at once: new CEO cleaning house, free cash flow generation still solid, and the stock trading at levels not seen since before the pandemic despite doubling revenue. The fact that he waited 7 years to buy TGS-Nopec shows he's not rushing into PYPL without a clear catalyst. Do you think the Q3 earnings will show enogh progress on Chriss's turnaround plan to justify starting a position?
The buyback factor is indeed really striking, especially since the other position he started in Q2 was Crocs, yet another company that has announced a buyback program to retire 30% of their shares.
Q3 earnings for PayPal were quite strong, and the stock was initially up more than 15% but then lost it all again in the next days. Seems like the market is not yet convinced of the turnaround.
I'm curious to see Lou's 13F for Q3 (should be out in the next 2 weeks), but at the current valuation and with strong and even improving fundamentals, I think PayPal is very attractive.