To The Moon

[To Grab or not to Grab]

To Grab

The case for Grab and is that with this acquisition, Grab's omni-commerce strategy gets strengthened (omni - means everywhere). Aside, Grab gets a hold of more opportunity to rake in profits from dinning. With its presence in 7 cities, Chope has already has a 13,000 restaurant network in its database. Imagine what Grab could do with that.

A quick check on Simply Wall Street (SWS) tells that Grab is 3.2% below its fair value estimate. Earnings are forecasted to grow at 54%, per year, with analysts expecting a 40% rise in stock price. Additionally, SWS detected no risks for Grab.

Another article from Seeking Alpha sees a huge upside in Grab. The author sees a path to profitability late 2024 to early 2025. With the surging financials of Grab, the author concluded a "Strong Buy".

Not to Grab

The opposite case can also be quite compelling. The Sloan ratio of -27.2% highlights that Grab is likely to be having poor quality of earnings, possibly made up of accruals. Grab also has a grey Altman Z score, implying that the company is in some kind of financial distress.

Grab could not disclose the acquisition cost. This might mean that the deal might have been sweeter for Chope than for Grab.

Numbers wise, a net margin of -11%, ROE of -4.33 and a ROIC of -7.70, looks like a convincing argument to stay far away.

With a PB of 2.13, current ratio of 3.26 and a cash ratio of 2.70, suggests that Grab is still sitting on a war chest of powder. Question is, how long will it last?

So how?

Personally, it's a battle of the greed of possible gain vs the fear of possible loss. I have other compelling targets to fire at but I won't discount$Grab Holdings(GRAB)$  . I will adopt a wait and see. If Grab does prove itself in terms of excellent execution with strategic vision, I might allocate a small portion of my powder over. Otherwise, I will stay far away as an investor, and just remain a humble user.

What do you think?

Is Grab with Grabbing?[Glance]  

Like, comment, and share.

Meanwhile, let me grab my dinner.[Yummy]  

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