+ Watch LOCK
on My Watchlist
Skimmers stealing debit/credit cards more and more. Violent crimes down, but white collar crimes up. Identity theft on the rise. LOCK management getting the numbers right MRQ. Outperform for the next two to four years from here.
Rick's Pick good enough for me.
LOCK's membership growth and, more importantly, retention continue to improve. Its enterprise software is undervalued by the market.
The most annoying ads ever.
Interesting company, with growing member base. IPO'd in October 2012. Currently 2.5 million paying members with an 87% retention rate. LifeLock has had 31 straight quarters of member and revenue growth. Company generated $48.4 million in cash flow from operations, and has a nearly 6% cash flow yield. Not bad for a $810mln market cap company. LifeLock also has $134 mln in cash with no debt and access to an undrawn revolver. With a sizable cash hoard and lots of cash flow, the company has the means to increase it's member base, which will obviously be the key to future. Giving the Green Thumb.
I couldn't value this company at a P/E of about 70- especially since it offers services that would otherwise be free to the consumer. The company has had a nice annual sales growth rate and EBITDA is on the climb. However, I'm very hesitant about the long term potential for this company. (I don't believe this would fall onto the "Permanent Value" list of Warren Buffet's.) The target market, I wager, has had near maximum exposure to this service meaning future sales growth will mostly rest on continuing customers rather than new ones. As is the case with most companies like this, I expect job cuts due to declining sales forecasts, resulting higher pressure from sales departments to sell new products to dedicated customers, resulting in a declining consumer base (especially when a newer security company looks like a fresh alternative). We will see what happens.P/BV and P/S are also valued way too high right now. Considering the financial statements, this may have been a good mid-term investment had it not opened at $10- a value that automatically made it overpriced. This company is simply not worth what the market is currently spotting it at. I will hold this thumb until a serious turn around seems likely, mostly ignoring short blips. (Unless I feel like hoarding points :D)
Closed out my last pick to get more points on the recent bump. No moat (too many free services to choose from). Not a good investment.
Lock-up your money and don't invest in this trash stock.
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