Posted on August 2, 2021 by Florian Buschek
Gaia (disclosure: long) reported earnings today and they were spot on. It is really an easy story actually. You got a highly scalable recurring niche business with largely fixed cost growing 20% a year with 20% (and increasing) EBITDA margins at 15 times EBITDA. I took the transcript and highlighted key sections here(signing up is free).
We Breakout Investors have been following the story for a while and profited handsomely buying low and selling high when Mr Market provided us the opportunity. Management is highly reliable and has admirable control over their business. “I think it’s much more what we do than what other people do.” You’d think from listening to Jirka and Paul that running a business is the easiest thing in the world. If the market ignores the cheap valuation for longer there is a buyback in place for management to take care of the cheap stock.