$ROKU near heavy entry (3/5)

Conviction: 3/5
Should probably wait for better entry around bottom support (4/5)


General Thesis

• Weekly RSI good entry level
  
• Daily RSI bounced off oversold, could still become bullish divergence with a lower low
  
• bounced off near-term (2017) support trend line since inception
  

Growth

• Gross margins (45%) is pretty steady the last few years, at all time highs
  
• Revenue growth (50%) around historical average, down from 2020 pandemic highs
  

Value

• P/S below average, looks like about historical median
  
• P/FCF is very high (156), but about around mid-range of history
  

Fundamentals & Balance Sheet

• quick ratio very attractive
  

Potential Risks

• history is quite short, unclear how it will behave during recession
  
• Daily RSI could spike down to oversold area some more
  
• Historically no bullish divergence on weekly RSI before bounce
  

Bình luận:

Struggling along the support... looks more promising though!

Bình luận:

RSI-D showed bullish divergence