RBL - Redbubble

[thunder_son]

19 minutes ago, MattR said:

They wouldn't mainly because Etsy would anger a lot of the people who do T-Shirt printing on their website. It would alienate half their customers as they can't be sure if Etsy will start to compete in their niche.

Good point that Etsy would be cannibalizing on their current artists. In that perspective I cannot imagine that would buy a printing-machine. Maybe launch a sub-brand of Etsy and creating a competitor to Redbubble but that would need to build up a new brand and knowledge

 

19 minutes ago, MattR said:

No they don't, shouldn't matter what the report said. In a lot of countries they would be terribly sued.

 

I am not sure if it is a bargain, but after the latest price retraction it is at least not expensive anymore.

 

How did you assess the valuation? I agree, it doesn't have 50% margin of safety, but it currently trades around 10x cashflow multiple. And with a growth rate of conservatively 15%, that should be quite attractive

[MattR]

2 hours ago, thunder_son said:

Good point that Etsy would be cannibalizing on their current artists. In that perspective I cannot imagine that would buy a printing-machine. Maybe launch a sub-brand of Etsy and creating a competitor to Redbubble but that would need to build up a new brand and knowledge

 

 

How did you assess the valuation? I agree, it doesn't have 50% margin of safety, but it currently trades around 10x cashflow multiple. And with a growth rate of conservatively 15%, that should be quite attractive

I always do a simple DCF. I would say I am more on the Graham side than on the Growth side. My buy point is significantly under 3, so currently it is still too expensive for me.