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23 April 2022
By Maynard Paton
Every share has a bull case and a bear case.
Our job as investors should be to consider the arguments from both sides, and decide which is the stronger before buying or selling.
Beeks Financial Cloud is a good example of a company with distinct pros and cons:
For the bull case, the cloud-computing specialist offers:
- A strong competitive position in a fast-growing industry;
- A wonderful revenue history created by recurring customer payments, and;
- Shareholder-friendly management led by a ‘thin cat’ entrepreneur.
But for the bear case:
- Past growth has required substantial investment and extra funding;
- The underlying economics of the business remain unclear at best, and;
- Plenty of future expansion is already priced into the shares.
Let’s take a closer look.