Hedgeye CEO Keith McCullough is adding Toast (TOST) to the long side of Investing Ideas. Below is a brief note.
The only thing better than having the patience to NOT chase price on a big IPO day, is buying-the-damn-dip AFTER it corrects...
It's interesting, but not surprising, to see consensus panic about Growth Stocks when US Growth is set to #accelerate (Q4 vs. Q4) into a #Quad2.
Buying Software and/or Howard Penney's Toast (TOST) on sale works for me. Here's a good excerpt from Penney’s Consumables Pro research on the name:
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Takeaway: We presented our pre-IPO Black Book on Toast yesterday. Toast (TOST) raised the price range for its IPO from $30-33 to $34-36 earlier in the week. The offering price was subsequently raised again to $40. Shares opened trading at $65 today. Shares opened above the price range we highlighted in our pre-IPO Black Book. Comparing to publicly traded peers we thought the shares could trade up significantly. Not only did Toast have a larger TAM in the restaurant sector, but it also is set up to have a more dominant competitive position. |
Best of luck out there,
KM