Come head bang with the $BAND

TL:DR. Bandwidth is drastically undervalued compared to other tech on the market, when comparing the revenue growth. They are value the same as they were pre-pandemic, but have since acquired a company to go global, and revenues have grown about 100% since back then. short interest is 17%, it is low float and low volume. a turn around could blast this company to space, just like it did at the start of the pandemic, when it ran from high $70s to $196šŸš€ šŸš€šŸš€ šŸš€ Alright you nerds, let's talk about a little known company called Bandwidth Inc. ($BAND), and one of the most undervalued tech plays on the market. Who they are and what they do : Bandwidth is a CPaaS company, Communications Platform as a Service. They are a B2B company that provide APIs to enterprise customers, that allow them to integrate phone calls and text messaging into software and apps. Ever call into a Zoom, Microsoft Teams, or WebEx meeting on your phone? That is Bandwidth. Ever make a call through Google Voice? That is Bandwidth. Basically any apps or software that have native calling or texting built into will use Bandwidth or a competitor like Twilio. Some other examples of how the products and services work: Service/Call center software, would use Bandwidth APIs to built the calling into the software, or if you are texting with a support center. 2 factor authentication texts making a call from you Amazon Alexa or Google Home Alert texts for things like Open Table, WaitMe, or Lyft Advanced Emergency/911 services, that allow for more accurate location mapping when people call from big office buildings. they can see what floor and where on the floor the call is coming from. Let's look at some bullish shit going on with them: Big Partnership with Microsoft Big Partnership with Zoom Big partnership with RingCentral Bandwidth is expanding globally. ā€‹ Let's look at the huge growth over the past 3 quarters: https://investors.bandwidth.com/news-releases/news-release-details/bandwidth-announces-fourth-quarter-and-full-year-2020-financial Fourth quarter total revenue of $113.0 million, up 82% year-over-year https://investors.bandwidth.com/news-releases/news-release-details/bandwidth-announces-first-quarter-2021-financial-results First quarter total revenue of $113.5 million, up 66% year-over-year https://investors.bandwidth.com/news-releases/news-release-details/bandwidth-announces-second-quarter-2021-financial-results Second quarter total revenue of $120.7 million, up 57% year-over-year ā€‹ Some technical info: Band is sitting at the lower bound of a multi-year trend, after having huge growth over the past year and a half, and expanding internationally. It is sitting at a fairly oversold level on the RSI, and right at a huge column support area. It stands to reason that we will see a bounce up from here, at least to the next supply zone in the $115-120, but could trend back up as high as the upper trend line in the $160-170 area. šŸš€ šŸš€šŸš€ šŸš€ https://preview.redd.it/i4g5gg4p7ey71.png?width=1118&format=png&auto=webp&s=7b548ac84bd9e0788afe4f84dad2675d225379f0 Short interest is also sitting at 17%. Not a huge amount, but with such low float and low volume, this bad boy can easily be blown sky high. So why id BAND valued so low? My theories are that: They are somewhat miscategorized. The price clearly tracks with telecom infrastructure, which is somewhat justified, in that they have a nationwide network. But not justified, because they are being compared to cash dinosaurs, and not the high growth software they are providing. https://preview.redd.it/8jii5se69ey71.png?width=620&format=png&auto=webp&s=ea93d51f632e48aadbcf9b416e1eedc5de165f14 Because they are low float and low volume, when ETFs and such sell that sector, they get shoved around more that usual. I think there is a fundamental misunderstanding in the market of the company, what they do, and what the potential is. I believe this incorrect categorization will change over time, and the stock is being sold at bargain barrel prices until then. Positions: Currently 1150 shares. Options could be played, but the volume is low, so spreads are a bit wide. Also, it is hard to say how long a it will take for the market to realize it is missing out. Selling puts is probably free money. OTM Leaps or debit spreads could work. Edit. Forgot to mention that earnings are at the end of the day today. This could be where the big uppies get underway.

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ShankThatSnitch

Nov 8, 2021

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Come head bang with the $BAND

bullish

TL:DR. Bandwidth is drastically undervalued compared to other tech on the market, when comparing the revenue growth. They are value the same as they were pre-pandemic, but have since acquired a company to go global, and revenues have grown about 100% since back then. short interest is 17%, it is low float and low volume. a turn around could blast this company to space, just like it did at the start of the pandemic, when it ran from high $70s to $196šŸš€ šŸš€šŸš€ šŸš€

Alright you nerds, let's talk about a little known company called Bandwidth Inc. ($BAND), and one of the most undervalued tech plays on the market.

Who they are and what they do :

Bandwidth is a CPaaS company, Communications Platform as a Service. They are a B2B company that provide APIs to enterprise customers, that allow them to integrate phone calls and text messaging into software and apps. Ever call into a Zoom, Microsoft Teams, or WebEx meeting on your phone? That is Bandwidth. Ever make a call through Google Voice? That is Bandwidth. Basically any apps or software that have native calling or texting built into will use Bandwidth or a competitor like Twilio.

Some other examples of how the products and services work:

  • Service/Call center software, would use Bandwidth APIs to built the calling into the software, or if you are texting with a support center.
  • 2 factor authentication texts
  • making a call from you Amazon Alexa or Google Home
  • Alert texts for things like Open Table, WaitMe, or Lyft
  • Advanced Emergency/911 services, that allow for more accurate location mapping when people call from big office buildings. they can see what floor and where on the floor the call is coming from.

Let's look at some bullish shit going on with them:

ā€‹

Let's look at the huge growth over the past 3 quarters:

https://investors.bandwidth.com/news-releases/news-release-details/bandwidth-announces-fourth-quarter-and-full-year-2020-financial

Fourth quarter total revenue of $113.0 million, up 82% year-over-year

https://investors.bandwidth.com/news-releases/news-release-details/bandwidth-announces-first-quarter-2021-financial-results

First quarter total revenue of $113.5 million, up 66% year-over-year

https://investors.bandwidth.com/news-releases/news-release-details/bandwidth-announces-second-quarter-2021-financial-results

Second quarter total revenue of $120.7 million, up 57% year-over-year

ā€‹

Some technical info:

Band is sitting at the lower bound of a multi-year trend, after having huge growth over the past year and a half, and expanding internationally. It is sitting at a fairly oversold level on the RSI, and right at a huge column support area. It stands to reason that we will see a bounce up from here, at least to the next supply zone in the $115-120, but could trend back up as high as the upper trend line in the $160-170 area. šŸš€ šŸš€šŸš€ šŸš€



Short interest is also sitting at 17%. Not a huge amount, but with such low float and low volume, this bad boy can easily be blown sky high.

So why id BAND valued so low? My theories are that:

  • They are somewhat miscategorized. The price clearly tracks with telecom infrastructure, which is somewhat justified, in that they have a nationwide network. But not justified, because they are being compared to cash dinosaurs, and not the high growth software they are providing.



  • Because they are low float and low volume, when ETFs and such sell that sector, they get shoved around more that usual.
  • I think there is a fundamental misunderstanding in the market of the company, what they do, and what the potential is. I believe this incorrect categorization will change over time, and the stock is being sold at bargain barrel prices until then.

Positions: Currently 1150 shares. Options could be played, but the volume is low, so spreads are a bit wide. Also, it is hard to say how long a it will take for the market to realize it is missing out. Selling puts is probably free money. OTM Leaps or debit spreads could work.

Edit. Forgot to mention that earnings are at the end of the day today. This could be where the big uppies get underway.

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3 min

95.00

Target Price

9/ 10

Confidence

1-2 Weeks

Timeframe
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