This is a long term momentum-based position. There is no target price for this position - it has unlimited upside and downside limited to 15% - both based on crossing the 200EMA.
As part of my investment thesis I always consider fundamentals. The entry price for OVH is high using traditional valuation methods, therefore entry is based solely on the above analysis. The fundamentals that support this investment are:
- The company has just become positive and profitable. This means all new revenue significantly improves the bottom line.
- Management owns a significant portion of the company
- Industry tailwinds (FinTech)
- Relatively fixed cost base
- Recent growth trend is strong
- Significantly net cash