Interview with Arthur Chen, CFO of $FUTU
Earlier today I had the pleasure of interviewing Arthur Chen, CFO of $FUTU [watch here]
$FUTU is one of my largest holdings because the fundamentals are just incredible and the company still has so many levers to pull which includes international expansion, wealth management services, insurance products, lending products, and even crypto products which are coming later this year.
$FUTU’s 2021 Q1 results were simply incredible [click here]
Client assets: +367%
Revenues: +349% YoY
Gross margins: 80%
Gross profit: +372% YoY
Net income margins: 50%
Net income: +550% YoY
I believe $FUTU will do $1.2 billion in revenues this year which means the stock is currently trading at 33x 2021 earnings (not sales, but EARNINGS).
$FUTU is growing revenues at 180% YoY and earnings at 240% YoY.
$FUTU should be trading at least 60% higher in the $240 range — right now $FUTU is trading in the $150 range. This is one of the most undervalued stocks I can find.
$FUTU remains one of my best stock ideas for the next 6-12 months which is why I own the equity and the call options.
Here is the full interview with Mr. Chen:
I’m still working on my next writeup for paid subscribers which should be out sometime this week — it’s a slightly different format than previous writeups but I think you’ll like it. I actually cover multiple companies in this one.
Disclaimer: The stocks mentioned in this newsletter are not intended to be construed as buy recommendations and should not be interpreted as investment advice. Stocks mentioned in this newsletter should only end up in your own portfolio after you conduct your own research and due diligence. Many of the stocks mentioned in my newsletter have smaller market capitalizations and therefore can be more volatile and should be considered more risky. I encourage everyone to do their own research and due diligence before buying any stocks mentioned in my newsletter. Please manage your own portfolio and position sizes in accordance with your own risk tolerance and investment objectives.