COUPANG STOCK ANALYSIS - Undervalued Now? Intrinsic Value Estimate! | Summary and Q&A

TL;DR

Cole Pen Stock, known as the "Amazon of Korea," has seen a drop in market cap since its IPO, but still has significant growth potential domestically and internationally.

Key Insights

• 👨‍💼 Cole Pen's business model closely resembles that of Amazon, positioning it well in the South Korean e-commerce market.
• 💪 The company's strong fulfillment and logistics network contribute to its competitive advantage.
• 😋 Cole Pen's domestic growth potential remains high, with expanding services like fresh produce and food delivery.
• 🌍 International expansion into larger markets like Japan offers significant opportunities for Cole Pen.
• ⏳ Profitability and positive cash flow may take time as the company reinvests for growth.
• 🪡 Risks include the need to compete in a crowded e-commerce market and the potential limitations of the domestic market.
• 🧚 Estimating Cole Pen's fair interest value per share requires considering comparable companies' multiples, such as Amazon.

Transcript

hi everyone this is victor here welcome to the intelligent investor channel we're going to talk about cole pen stock today several subscribers asked me to make a stock analysis video about cold pen stock because kopen is the biggest ipo this year it's known as the amazon of korea at the time of making this video the stock has dropped as much as 21.... Read More

Questions & Answers

Q: How does Cole Pen's business model compare to Amazon's?

Cole Pen's business model is similar to Amazon's, focusing on B2C e-commerce. However, Cole Pen owns most of its inventory and has higher inventory costs compared to C2C marketplaces like eBay.

Q: Is Cole Pen profitable?

Cole Pen is still in the early growth stage and not yet profitable. The company needs to reinvest capital into its business, resulting in losses. Consistent profits and positive cash flow are not expected in the near future.

Q: What are the risks associated with investing in Cole Pen?

The main risks include the company's lack of profitability and negative cash flows, potential limited growth in the domestic market, and increased competition from other e-commerce players in Korea.

Q: How can Cole Pen's fair interest value be estimated?

Due to the company's inconsistent cash flow growth, a discounted cash flow (DCF) model is not appropriate. Instead, comparable companies' price-to-sales multiples, such as Amazon, JD.com, and Rakuten, can be used to estimate Cole Pen's fair interest value per share.

Summary & Key Takeaways

• Cole Pen is the largest online retail store in South Korea, offering a wide range of products and boasting a strong fulfillment and logistics network.

• With a domestic market still in the early growth stage, Cole Pen is benefiting from increased online shopping due to the pandemic.

• The company is expanding into fresh produce and food delivery services, further enhancing its growth potential.

• Cole Pen's international expansion into markets like Japan is on the horizon, with the larger population and GDP of these countries offering significant opportunities.