Thinking About Fiverr And Upwork Pair Trade, Think Kahneman

We looked at Fiverr International Ltd. (NASDAQ: FVRR) and Upwork Inc. (NASDAQ: UPWK) as a pair trade, i.e. going Long Upwork and Shorting Fiverr, but Daniel Kahneman inspired ‘Type 2’ thinking helped us conclude that it isn’t as good a trade as a first look at the two stocks and their respective valuations may want us to believe, especially if the market continues to favor growth. Why did we bother?   Next Yr. PE P/ Sales Current Yr. Sales 2019 Enterprise Value ($M) EV/ next yr. sales Fiverr  210.3  25…

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R1 RCM Is A Rare Health Tech Winner

R1 RCM Inc. (NASDAQ: RCM), a provider of ‘revenue cycle management’ services, i.e. services ranging from patient registration to bill collection, to healthcare providers, is one of the beneficiaries of healthcare providers outsourcing front-end services. Usually, the healthcare industry, in general, is one of the slowest adopters of technology and outsourcing services, which is one of reasons space doesn’t either grow or command the trading multiple like high-growth tech niches, e.g. Cloud, but RCM seems to be making the right moves in terms of both revenue growth and profitability, shrugging…

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