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StoneCo – Not a Marijuana Stock (STNE)
Posted on January 7, 2021
Today’s underlying is an ecommerce outfit based in the Cayman Islands, banking home of the independently wealthy, both criminal and hard-working.
They call themselves StoneCo (NASDAQ:STNE), and they claim to facilitate financial transactions for small business in Brazil.
Of all things…
Fundamentally speaking, StoneCo has some dastardly numbers:
- P/E is 414.63,
- P/B is 8.17, and
- There is no dividend on offer.
Granted, she’s an online business – and that explains, at least in part, the inflated metrics – but with 6000 employees, we’re beyond start-up stage growth numbers. So something’s amiss.
Maybe Investors Are Stoned?
A scan of the company’s press releases reveals little in the way of thrill-inducing buy signals.
Yes, Berkshire Hathaway owns a chunk of the company, and yes, that’s exciting.
But at some point, buying must needs exhaust itself.
And we believe that time is now – for now.
Have a look at the daily chart for the last year –
Many happy returns,
Matt McAbby
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