5 Stocks to beat Deliveroo

“There is nothing new under the sun”

That’s the kind of statement thrown around by middle-aged men halfway through their pint of stout. It’s an axiom — a self-evident truth.

Boiled down, it means that there is nothing new in this world. Nothing that is happening now, hasn’t happened before.

Now, if you want to get pernickety, you could argue that the Pharaohs weren’t catching up via Zoom and driverless chariots hadn’t really kicked off back then.

It has a broader meaning; human behaviours and ideas haven’t changed all that much over the years. Facebook is your alumni gathering of ye olden day, Snapchat is your polaroid and Instagram is your yearbook. Now, it’s probably fair to say that these similes are a bit of a stretch…however, not ridiculous.

Flicking through the broadsheets recently, I was stunned to see that Deliveroo is currently valued at $6 Billion, albeit privately, with an IPO likely to value the Company at around $140 Billion. To put that into perspective; the prospective valuation almost meets the combined market capitalisation IBM, General Motors, Barclays Bank

This hits home. A few years ago, I ordered a Deliveroo to my gran’s house. She opined “Delivery lads on bikes?! We had them when we were growing up”. My gran grew up in the 1930s. There is nothing new under the sun.

Now, I know that Deliveroo isn’t simply lads on bikes delivering sausages from the butcher. It probably prefers to be known as “Real-time analytical platform for logistics” or other buzz words rich text.

When you strip away all that nonsense, though, it is butcher’s boy, on bikes, delivering grub on a large scale. And it is expected to be valued, by the stock market, at £120 Billion.

Incredible stuff.

It doesn’t even make a profit. I’m sure it has some innovative technology, and I know it has built a robust technological infrastructure…but remove Deliveroo from people’s lives tomorrow, and there will be very few tears. Remove Facebook, and there might just be riots.

This all makes me think that there is a very real “bubble” at play in the stock market currently.

And the thing about bubbles, is, well, they burst.

Warren Buffet once philosophically opined that “When the tide goes out, we will see who has been swimming without clothes”. I’d wager that, when the bubble bursts, the genitalia of non-profit making Companies will be visible to all.

With all that in mind, it’s time to return to good old commercial values. Products. Profit. Longevity.

Top 5 Undervalued Companies:

  1. Hudson Technologies. As seen by the Vaccine news of late, cold chain storage is at a premium. Not to mention global warming causing the ambient temperature of the globe to rise. Tech that provides enhanced cooling to data rooms, transport and off-site storage will continue to be very valuable. Valued at $48 Million, a snippet of Deliveroo.

For every hype generating bonanza such as Deliveroo, there are good honest profit turning Companies out there. There is nothing new under the sun and profit will never, ever go out of fashion.

--

--

Founder of www.realcbdclub.com —Former VC and Startup Guy…I write for fun. About things I like, and some things I hate.

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Phil Patterson

Founder of www.realcbdclub.com —Former VC and Startup Guy…I write for fun. About things I like, and some things I hate.