Early Heads Up For Patreons: Opendoor Stock at $22.73 is a Huge Opportunity
Added 2021-01-04 09:41:16 +0000 UTCOpendoor Stock dropped from almost $32 to $22.73 and present a very good entry point for a long term investment. My price target for this company is $35 so I feel like we have $12 of upside (50%!) baked into the current price. While everyone is chasing BNGO and penny stocks for massive quick gains, I like super strong long term plays like this company. This is a $12.37B company with a really strong business model. Chamath has the potential to disrupt the real estate market with this company, and despite it being a SPAC which I don't like, this company seems to be very undervalued.
Comments
I'm also bullish and will hold long term. My question for you though, why Opendoor and not Redfin or Zillow? Everything I've found online is focused on their profitability and how they won't get the margins they need to make this work long term. I watched a few videos and I feel like the CEO has a vision of basically little to no profit from the flip but to squeeze you while you're in the funnel with value add services that make it more convenient for the buyer and seller. Also interesting they are looking to continue relationship with other continuing services. I like the vision and I'm on board but everyone points to Zillow and Redfin as too much competition. I suppose the TAM is big enough for everyone?
Anthony Hunter
2021-01-14 07:56:14 +0000 UTChaven't looked into as much as you, maybe tom can comment
Allen Liu
2021-01-08 18:58:25 +0000 UTCThe business has 2 components: 1) service which is replacing the realtor, but even with streamlining the process it still has to pay for someone to take the buyers to examine the property. That service may have a good margin but it is not a game changer with Zillow and Redfin also doing the same thing. 2) the investing component which is a flipping business. This component is capital intensive and even though the margin maybe attractive for an individual/mom and pop operation, the average for the big players is around 3-5%. This is the reason why developers don’t flip. As I have commented, with so much cash flooding the market “I buy ugly houses with cash” sign on almost every block of any suburb, OpenDoor, Zillow, Redfin, etc. can be a profitable company but not really a good investing company. How can they grow?
Zachary T
2021-01-06 21:41:27 +0000 UTCwell, it allows real estate to be a more liquidatable asset. It all depends on the person using the service. I would say if you were cash strapped and needed to sell the house in a day it would be a good option, instead of declaring bankruptcy.
Allen Liu
2021-01-06 21:20:34 +0000 UTCI disagree with this one Tom. The margin on flipping properties for OpenDoor at best in 5 years is 4%. With money flooding the market and labor cost rising, there is no way it can find enough properties to flip and manage a 4% margin. Zillow and Redfin are not kids either. I watched some clips of the CEO and he doesn’t strike me as someone with a tunnel vision. I know Cathy is in on this one and Chamath is a good investor but technology cannot disrupted this industry unless it can somehow incorporate 3D Printing in the construction process.
Zachary T
2021-01-06 03:36:54 +0000 UTCThanks I got it at 22.32!
Wilfredo José
2021-01-05 22:01:34 +0000 UTCTrue that! I am getting late on SPAC ship but so far I am either investing on the investor OR when dust settles after a good merger announcement.
NS
2021-01-05 18:46:26 +0000 UTCGot in at 22.8. 👊🏻 thanks
Timjulian
2021-01-05 15:32:03 +0000 UTCAha, thanks for the clarification! William.
EV Bike Dude
2021-01-05 12:42:06 +0000 UTCI got it at 22.8 with about $8000 investment. Long term.
Generico Fakero
2021-01-05 08:11:23 +0000 UTCyes. wanted to give you a heads up before everyone.
Generico Fakero
2021-01-05 08:11:03 +0000 UTCI added current price. Let me see how I can give pivot options.
Generico Fakero
2021-01-05 08:10:42 +0000 UTCthe usual SPAC issues: initial dip is guaranteed, now it will start climbing up long term since its a good business. SPAC are risky when they invest in shit companies, but this one is legit.
Generico Fakero
2021-01-05 08:10:11 +0000 UTCwhat price is it showing you? that is strange
Generico Fakero
2021-01-05 08:09:09 +0000 UTCBig fan of Ark - but I think they run a number of ETFs. I think they have shares in SPACs maybe that what you meant right?
Generico Fakero
2021-01-05 08:04:15 +0000 UTCThank you! :)
Edgar Arevalo
2021-01-05 00:25:13 +0000 UTCPerfect timing Tom. Thanks a lot.
Juan
2021-01-04 23:44:32 +0000 UTCThanks. Already made my annual fee and some more. Appreciate the info!
Sai Nagarajan
2021-01-04 23:42:10 +0000 UTCthank you Tom I got some share at 22,75 open house , spasibo horosho
Andy Handy
2021-01-04 19:17:09 +0000 UTCAre you going to do a video on the DCF for this one?
Nick
2021-01-04 15:39:18 +0000 UTCPeople getting suckered by company calling itself ARK CAPITAL who is putting itself out there as a SPAC LOOKING for the highly disruptive innovative tech or bio private company. I saw that ARK was funding a SPAC merger and I thought immediately that it was ARK. Getting tricksy those fraudsters are. In my opinion.
William D Edwards
2021-01-04 13:10:15 +0000 UTCHi Tom, Could you maybe add a "current price" column to the spreadsheet please, i.e. a hot-link to some live data, or even to a closing price for the previous day or the like? Also, there should be a way to enable filtering (pivot table) in view only mode, so every one can change the sorting in their own view without messing up the sheet. Thanks.
EV Bike Dude
2021-01-04 10:55:17 +0000 UTCThanks Tom! Since it's already merged could you please let us know how it being a SPAC can impact its future?
NS
2021-01-04 10:54:35 +0000 UTCArkInvest? They are (active) fund managers I think, not a SPAC or did they do some SPAC meger at some point?
EV Bike Dude
2021-01-04 10:53:07 +0000 UTCHow is ARK ETF's and SPACs connected?
NS
2021-01-04 10:52:01 +0000 UTCLaPlace: https://www.msn.com/en-us/money/news/opendoor-to-merge-with-spac-at-dollar48b-valuation-what-you-need-to-know/ar-BB194pt7
Rick852
2021-01-04 10:02:03 +0000 UTCMy Broker (XTB in Europe) doesn't have "OPEN" available, it has "IPOB" on NYSE, and the Company Name is "Opendoor Technologies Inc (OPEN)". Not sure if this is normal :)
Laplace's demon
2021-01-04 09:54:10 +0000 UTCThanks. Don't like SPACs? So not a fan of ARK?
Rick852
2021-01-04 09:43:06 +0000 UTC
