Ben's avatar
$17.5m follower assets
LTCH
$LTCH making sure it can survive the “recession.” Decreasing spend and laying off about a third of its staff.

“The expected increase in operating efficiencies under this plan, in conjunction with the changes announced in May 2022, are expected to result in approximately $85 million to $95 million in total annualized operating savings once fully completed. Latch estimates annualized operating expenses and capital expenditures of $65 million to $75 million following the completion of these changes.”

$LTCH has 91 mil in cash, 173 mil in short term investments, and 71 mil in long term investments. It has no debt.

That’s 331 mil net cash. It now has 4.7 years of cash burn runway up from 2.1 years prior to restructuring.

Its market cap is ** 1**6**2 ** m**i**l. Not a typo. Which is 50% of its net cash
Massive if they can pull this off properly.

ATM, lower costs are far more important than wild growth for them -- especially trading with a MC below its net cash.

If it can somehow get to breakeven with that stream of sticky payments coming in over the long haul, $LTCH could be an incredible multibagger off of today's $1 price.

High-risk for sure, but I'd rather buy a few Latch shares than lotto tickets. 😂 That's kind of my frame of mind approaching this investment.
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Ben's avatar
$17.5m follower assets
Monthly update
YTD - 8.9% vs S&P -13.4
As long as I keep outpacing the market, I’ll keep hanging out with you all and buying individual companies.

Sold $ILMN. I had a post about why last month. Also excited a small tracking position in $SHOP. That’s it. Sold 2 companies all year.

Bought
Added to existing $GOOGL $ASML $WRBY $LTCH $ABNB
Started new $UPST

I really enjoy being a part of this community. Thanks for listening!
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Josh Kohn-Lindquist's avatar
$24.8m follower assets
A Broken Investment Thesis
I am curious to see what you all think about closing positions when your investment thesis in a company appears broken.

I may be in the minority here, but I wouldn't say I like to close positions in these companies -- say $TDOC, $PTON, $LTCH, or $APPH for me.

I would love to have a "tidier" portfolio and put this money to work elsewhere, but most investors I admire have said that their biggest mistake was selling a stock too early.

In this weird sense, I have a kind of FOMO -- even when my investment thesis for a company isn't currently intact.

Mostly, this keeps me from thinking I'm smarter than I am -- getting too trigger-happy when I incorrectly feel a thesis is broken and selling right away -- and doing this too frequently.

Instead, I hold the position, stop adding, and let it run and rightsize itself to my portfolio, accumulating more data over a longer time frame.

Who is to say my investment thesis for the company was correct in the first place?
What do you do with a broken investment thesis in your portfolio?
34%Sell it all
30%Sell most of it
9%Sell some of it
25%Hold and let it run
43 VotesPoll ended on: 07/31/22
If it was a small investment to begin with, say <1%, it’s probably now worth <.25% and there’s no point in selling because the money isn’t a big deal. Great example would be FUBO for me right now.

However, if it’s a larger initial position and the thesis broke, absolutely sell because those funds can be a bigger impact elsewhere. Great example for me is $SMG. I invested for Hawthorne subsidiary, it has been performing terribly recently and management is now talking about spin-offs which to me is a lack of confidence from them. I exited my SMG position and redeployed elsewhere.

Generally though, I don’t sell. It’s rare for a thesis to break in a larger position for me. That may be indicative of theses that are too broad or have other flaws though. Never really considered that until now as I’m typing lol.
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Another look at co's trading near/below Cash - more SPACs this time

Did some more screens around this, and the following tickers are registering extremely low Price/Cash from completed SPAC perspective. Any takers out there for these? Write-ups or feedback welcome. All companies at less than 2-1 to cash ratio, some are under.

$LTCH - Fast growing arguably "tech" play at 30%+ under cash. Have read the CEO is a bit off via reviews. Is there a story here?
$NNDM - Additive manufacturing play trading 25%+ under cash. Why?
$SHPW - Similar to above, trading way below cash - seem to be collaborating with Desktop metal. Why the disastrous price - worst on the list? Well under cash.
$BLDE - Obviously a long way for VTOLs to really become a thing, but barely over cash value.
$HLGN - Unique approach to Solar.
$ROIV - Anyone understand this business?
$SPIR - Similar profile to $PL here.
$ASTR - Are reusable rockets going to be a thing? If so, these guys are a top 3 player and trading at cash.
$CURI - I've used the product and like it, although a lot of garbage on there, its value for the price.
$AESE - Cash pile trading at 63 cents on the dollar looking for target. Hit a home run on this last time it was setup similarly a year+ ago. Seen a few of these now. Do we just not trust the mgmt?
$ACHR - Seems like a Rivian-tier player in VTOL space. Can they get across finish line?
$SMFR - They seem to be struggling for a direction without Covid testing growth?
$EVLV - Does the technology here look realistic to take share from metal detectors?
$VLDR - Under cash value, but it's Lidar... seems too competitive.
Josh Kohn-Lindquist's avatar
$24.8m follower assets
5 Thursday Additions and 2 New Positions
I added to my core 34 position in $GLBE but also made secondary purchases in $COIN and $W since the markets have throttled them.

I also started new watchlist positions in $IDXX and $DXCM.

Last but not least, I bought some $DOCN and $LTCH for my daughter's account. Technically, DigitalOcean is one of my core 34 holdings, but it was for her account today.

Over time, I will continue adding to Global-e Online as its position needs to grow. Coinbase and Wayfair may get one more tiny purchasing round, but much farther down the road.

Idexx Labs and Dexcom fascinate me, so I just wanted to remember them.
Who performs the best over the next decade?
50%Coinbase
13%Wayfair
27%Idexx Labs
9%Dexcom
22 VotesPoll ended on: 05/22/22
4 Additions, 1 Reduction in Custodial Account
I reduced my daughter's position in $APPH after it rose over 100% in just the last month.

I still like the business, but it is genuinely high-risk, and I wanted to simplify her portfolio.

With that cash and new money added, I bought more $TTD, $ME, and $LTCH -- while also starting a position in $SMLR.

23andMe and Latch are high-risk too, but I follow them more closely and see a more straightforward path to long-term success than AppHarvest.

Meanwhile, Trade Desk's opportunity speaks for itself, and Semler Scientific was one put on my radar by @brianferoldi and @brianstoffel. Starter position to get some skin in the game and remember it by.
What differences are there between how you incest the custodial acct vs your own acct? I have a kiddo now and have started investing for him. Curious to learn from a fellow dad!
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Building Up Positions
Bought more $ZM, $KNSL, $UPST, $PINS, and $TTD for myself.

I got lucky and didn't buy yesterday like normal, guessing a drop might come today.

I also added some $TDOC and $LTCH to my daughter's account.

There is no change in investment thesis for any of them, just a bit cheaper now.
My Portfolio: 02/08/22
I am slightly nervous about having chased the likes of $TDOC $CPNG $PINS $LTCH $ME and $APPH as I don't usually add to losers. However, much of the growth market has been losers, so it's hard to avoid.

I will be building out some positions in companies not seen on this list to take advantage of the growth sell-off. $ZM $SHOP $DOCU $DOCN to highlight a few, maybe even $PYPL once the dust settles.
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Eric Pelnik's avatar
$284.3m follower assets
Earnings this week
📞Which calls are you most excited about?

Monday, August 9th
$API Agora
$APPF AppFolio
$ETH Ethan Allen Interiors
$GBDC Golub Capital
$COMP Compass
$CHGG Chegg
$ELY Callaway Golf
$TTD Trade Desk
$DOYU Douyu International
$TSN Tyson Foods
$WKHS Workhorse Group
$REAL The Real Real
$SQSP Squarespace
$MILE Metromile
$SDC Smile Direct Club
$AMC AMC Entertainment

Tuesday, August 10th
$MCFE McAfee
$DOCS Doximity
$U Unity Software
$PUBM PubMatic

Wednesday, August 11th
$APP Applovin
$BMBL Bumble
$OBLG Oblong
$HIMS Hims & Hers
$VRM Vroom
$MTTR Matterport
$MQ Marqeta
$NIO NIO
$OPEN Opendoor
$SONO Sonos
$WKME WalkMe
$WIX Wix.com

Thursday, August 12th
$ABNB Airbnb
$BIDU Baidu
$DIS Walt Disney
$DASH DoorDash
$FIGS Figs
$LZ LegalZoom.com
$ZIP Ziprecruiter
$LTCH Latch
$PLTR Palantir

Friday, August 13th
None of interest

Sources: Business Insider, Google Finance, Yahoo Finance
"The Market" Stock Pitching Game Recap
Thanks everyone for coming to "The Market" game yesterday morning! We had 19 people show up and heard 7 separate stock pitches.

If you'd like to receive a calendar invite for next month's game, shoot me a DM with your email and join the group channel here: https://share.commonstock.com/share?invite=FIkFbJ

Here is a recap of the picks, links to the video, and the Commonstock users who pitched them:

Softbank $SFTBY
Watch the pitch on Youtube HERE

Pinterest $PINS <= Most Votes and overall winner
Rihard Jarc @rihardjarc
Watch the pitch on Youtube HERE

Latch $LTCH
Jon Medearis @jonmedearis
Watch the pitch on Youtube HERE

Redfin $RDFN
Paul Essen @pessen
Watch the pitch on Youtube HERE

ClearPoint Neuro $CLPT
Kiran @coin
Watch the pitch on Youtube HERE

Core Molding Technologies $CMT
Yon @y4l.investing
Watch the pitch on Youtube HERE

UiPath $PATH
Amit @amit
Watch the pitch on Youtube HERE

Be sure to follow all of these people, they're awesome.
See you all next month!
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Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.