2Mon·

Good reasons why I am optimistic

BamBamInvest · 2024-12-26T09:30:32.502011Z

$NU The rapid user growth will continue in my opinion, as the expansion into Mexico and Colombia has only just begun and other countries could follow Revenue per user has great growth potential as it is currently around a quarter of the revenue of traditional banks Service costs continue to fall despite record lows The ratio of non-performing loans is approximately at the level of US competitors Business customer business is still a largely undeveloped area and has great potential for expansion It is trading at a ridiculous FWD-PEG ratio of 0.5, which in my opinion is currently one of the best opportunities in the market USD/BRL - here lies the problem of current weakness, dollar strength against the Brazilian real, but this has been the case for the last 5 years. Nevertheless $NU still perform magnificently ✌️

$NU (-1.35%)

The rapid user growth will continue in my opinion, as the expansion into Mexico and Colombia has only just begun and other countries could follow

Revenue per user has great growth potential as it is currently around a quarter of the revenue of traditional banks

Service costs continue to fall despite record lows

The ratio of non-performing loans is approximately at the level of US competitors

Business customer business is still a largely undeveloped area and has great potential for expansion

It is trading at a ridiculous FWD-PEG ratio of 0.5, which in my opinion is currently one of the best opportunities in the market

USD/BRL - here lies the problem of current weakness, dollar strength against the Brazilian real, but this has been the case for the last 5 years.

Nevertheless $NU (-1.35%) still perform magnificently ✌️

26 Comments

D.S.@Cato_Bamboo

2Mon

Sometimes I can't shake the suspicion that one or the other user here gets money for promoting junk stocks like a gold treasure.......... Just a feeling, of course!

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BamBamInvest@BamBamInvest

2Mon

@Cato_Bamboo why are you following this junk story then? Nobody is forcing you to read my posts.

I'm just trying to pass on the knowledge I've gained myself in order to offer added value to people who are interested. ✌️

Everyone can draw their own conclusions, make decisions and form their own opinion.

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BamBamInvest@BamBamInvest

2Mon

@Cato_Bamboo What exactly do you think is garbage about $NU? Do you have any arguments for it ?

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TAHT@TAHT

2Mon

@Cato_Bamboo $NU is far from a junk stock…what are you on about?

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TAHT@TAHT

2Mon

@Cato_Bamboo And it’s the world’s largest neo bank…

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D.S.@Cato_Bamboo

2Mon

@BamBamInvest......and I try to interpret your findings from my point of view so that precisely these people can get a second opinion as added value. This is fair......... with a 27.2% price loss in the last 4 weeks, I believe it is completely legitimate. Everyone can draw their own conclusions.

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D.S.@Cato_Bamboo

2Mon

@TAHT It's -27,2% in the last 4 weeks!

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BamBamInvest@BamBamInvest

2Mon

@Cato_Bamboo You are not interpreting and arguing, but rather labeling something as a junk stock without any corresponding arguments. And I have pointed out the fall in the share price and the reasons for it in the last few posts.

Apart from that, anyone who looks at the chart will probably recognize that 😄

You probably know that shares also fall and don't always rise. 😁

But thanks for your interpretation and the warning 🙏😉

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NEWT@SteelAnacott

2Mon

@Cato_Bamboo I always think it makes sense to read second opinions. However, they should also be supported by conclusive arguments. The share price performance of the last four weeks alone is not a sufficient argument. For one thing, the period under review is far too short. Secondly, it is far too superficial if you don't look at the background.

Two examples. To illustrate why the short-term share price performance is not a sufficient argument (before anyone accuses me of equating $NU with the following companies 😉).

1. $GOOG also plummeted in the short term when Chat-GPT was published. If I had only decided to invest based on the four-week chart back then, I would have missed out on a lot of returns.

2. $UNH: Performance of the last four weeks somewhere around -16%. Does that make it a junk stock?

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Patrick Schäfer@Hotte1909

2Mon

@Cato_Bamboo So in your eyes $NOVO B is also a junk stock? It even lost 20% in one week

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D.S.@Cato_Bamboo

2Mon

@Hotte1909 Nonsense, I bought them after the crash.....🙄

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View all 7 further answers

Tenbagger2024@Tenbagger2024

2Mon

Merry Christmas, my dears. So the discussion is exciting right now. Of course, dear @BamBamInvest has already presented NU several times. Some people here have also been buying again and again in recent weeks. Unfortunately, I even got in before the figures. But not because of Bam's posts. But because NU Bank is a growth stock. Nobody could have guessed that the share would fall like a stone after the figures, which were okay. Of course I'm annoyed that I'm now down 30%, but I wouldn't call the share a junk stock based on the fundamental figures. And I see the current price as a good opportunity. However, I would still point out that you should perhaps continue to monitor the chart and wait for a trend reversal.

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BamBamInvest@BamBamInvest

2Mon

@Tenbagger2024 Correct, the downside risk is always there, especially in the current economic situation, there could be an increase in loan defaults. Growth could also slow down and lead to a revaluation. ✌️

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Tim Vanman@Vanman

2Mon

Calling NU a junk stock is wild..
i will be loading up on this badboy, in the next 6 months, it will come a long way!
this is going to grow, and if i can get 40-80% on it, and then throw it in some dividend stock, im happy!

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Guggs@Faijon

2Mon

Nubank is a fantastic company, and as a Brazilian and customer, I can more than confirm that. However, the important question is: at what price should you buy its shares?
If you compare it to the large Brazilian banks, which have a credit portfolio vastly larger than Nubank, they are valued at a much more attractive price, for example: Banco do Brasil - P/E 3.9 / DY 10% / ROE 19.9% or Banco Itaú - P/E 6.8 / DY 7.2% / ROE 16.2%

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BamBamInvest@BamBamInvest

2Mon

@Faijon yes, but $NU is a neobank, is growing much faster and can therefore expand more quickly without physical branches. The $NU app is also much more advanced than those of other banks. Are you from Brazil?

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Guggs@Faijon

2Mon

@BamBamInvest Yep, I am. I agree with you that Nubank is a promising fintech. However, I believe there might be more attractive investment opportunities currently in the LA region.

With the Brazilian Central Bank likely to increase interest rates further next year, Nubank may face challenges in managing rising delinquency rates (evident over several quarters...going up and up). This could impact their profitability and growth trajectory.

On the other hand, there are established banks in the LA region, with more diversified and robust credit portfolios, are currently trading at significantly lower valuations, mainly attributed to interest rate hikes and the impact of currency fluctuations experienced in 2024.

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BamBamInvest@BamBamInvest

2Mon

@Faijon That's a good point, but I also believe that $NU 's loan portfolio is robust, they will survive if interest rates continue to rise and will then also benefit from falling interest rates. Moreover, rising interest rates are also an opportunity to poach more customers from the incumbents as they offer better conditions.

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TAHT@TAHT

2Mon

🔥🔥🔥

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