Sea Limited reported a YoY decrease in revenue for its Digital Entertainment segment, while its E-commerce and Digital Financial Services segments saw significant revenue growth. This led to a net income of $87 million for the company, compared to a loss of $580 million YoY. Shopee's positive financial performance is attributed to increased monetization and improved operating cost efficiency. SeaMoney also showed significant growth, with revenue reaching $413 million, a 75% increase YoY. However, the company missed Wall Street's expectations in terms of revenue and earnings per share. Despite profitability achieved through cost-cutting measures, management must now prove it can reaccelerate profitable growth. The author rates the company 3 out of 5 and holds a long position in Sea Limited.

Stride is an underappreciated edtech business with a strong outlook despite declining enrollments in its General Curriculum segment, as its rapidly growing Career Learning segment goes unnoticed. Stride's fundamentals, the potential of its Learning Hub, and the promising Career Readiness segment make it a safe, low-beta business. Despite easing COVID restrictions, management reported strong demand in Q3 and optimism for fall enrollments. The company's FY2025 guidance indicates a strong outlook with gross margin expansion. State regulation and scrutiny could result in fewer competitors and higher operating margins for Stride. General tailwinds include increased budgets for upskilling and reskilling and the potential for AI to displace workers, necessitating reskilling. Despite risks from competitors like Pearson's Connections Academy, Stride's growth, excellent fundamentals, and promising internal projects are expected to propel the stock price forward over the next 5 years. The author suggests Stride is undervalued due to an overemphasis on the General Curriculum business and suggests more attention should be paid to the expanding Career Learning business.

EverCommerce reported Q1 2023 financial results, beating revenue but missing EPS consensus estimates. The company provides business management SaaS software to service-based businesses, competing with companies like Salesforce, Intuit, Square, and HubSpot. EverCommerce's revenues have plateaued in recent quarters, but the company has shown resilience despite a challenging macroeconomic environment. The global market for SMB IT spending is expected to reach $988 billion by 2030, with China as the fastest-growing region. The company's financial position is strong with ample liquidity, reasonable long-term debt, and solid free cash flow generation. EverCommerce is pursuing balanced growth and focusing on its embedded payments system, which grew revenue by 37% YoY. While the author's outlook for the stock is a Buy, risks include a macroeconomic slowdown, tightening credit conditions, and lengthening sales cycles.

Splunk, a high-growth SaaS firm, has seen volatility in its shares this year, with strong buying and price movement following its latest earnings report. The company has crossed the $1 billion quarterly run rate mark with over 30% growth in every quarter since the new CEO started in Q2 2022. Gross margins are at their highest in 10 quarters, and Splunk posted its first quarterly profit with a net margin of 21.4%. The company has shown a good trajectory on cash flow. A key risk is a potential slowdown in growth, but recent rates suggest strong demand for the firm's products. While the company's valuation looks appealing on a price return basis, it is still considered expensive when considering its relative multiples. However, when extrapolating growth rates, Splunk seems to be trading cheaply for a 1-4 year horizon. The author suggests a price target of $248.17 (currently $96.27) by the end of May 2025 and expects the company to exceed expectations in its upcoming Q1 2023 earnings report. The author considers Splunk a buy, suggesting it may be at the start of a new era.

High Arctic Energy Services is considered significantly undervalued. Major changes are planned, including a return of capital to shareholders, maintaining the Canadian snubbing business as a public company, and spinning off the PNG business into a private company. The PNG business has the most potential, and as planned projects come online, the cash flow could mirror or exceed the company's numbers from 2010-2018. Owning a key player in the industry's development that generates and distributes large amounts of cash for less than half a year's worth of cash flow is seen as an attractive risk-reward opportunity. Management and the board, which control about 55% of the shares, are focused on conducting all initiatives in a tax-efficient manner. High Arctic has been long undervalued, and these changes should result in a low risk-high return scenario.

Allegro MicroSystems, a global designer, developer, manufacturer, and marketer of sensor integrated circuits, is seen by investors as a play on the electric vehicle revolution and a bet on the growth of clean energy. However, the company is facing issues related to conflicts and irregularities, including numerous executive resignations, two auditor dismissals, and a peculiar relationship with its major supplier, Polar Semiconductor. Polar Semiconductor, which is a joint venture owned 30% by Allegro and 70% by Sanken (Allegro's largest shareholder and customer), is seen as not conducting sales at fair market rates with Allegro. Furthermore, as Allegro's dealings with Polar grew, Polar's profitability declined, and Allegro's stake in Polar produced a loss.

The author recommends a Buy rating for KB Financial Group Inc.'s stock, citing its potential for increased capital returned to shareholders via dividends, outperformance against Shinhan Financial in terms of capital strength, non-banking business diversification, and net interest margin performance. KB Financial's future earnings are expected to be resilient due to diversification into non-banking businesses and a high proportion of non-interest income. The company's strong capital position allows for the maintenance or expansion of returns to shareholders, even with tighter regulatory capital requirements. Despite better financial metrics, KB Financial trades at a discount to Shinhan Financial on key valuation metrics like forward P/E and trailing P/TBV, which the author argues is unjustified. The author believes KB Financial should trade at a premium based on its non-interest income contribution, net interest margin improvement, and high CET1 ratio.

LendingClub's stock has been undervalued due to assumptions of traditional banking issues, despite it not operating like a traditional bank. LendingClub's business model primarily involves holding personal loans that the company originates, making it resistant to deposit funding pressure. The company is also poised to increase its market share as competitors grapple with balance sheet and cost of funding issues. With credit card balances at an all-time high, LendingClub's personal loans offer an alternative for debt repayment. LendingClub has remained profitable, even with a significant drop in its marketplace business, due to earnings from its banking operations. The return to a normal marketplace environment could be worth nearly $300M annually to LendingClub. The company has a tangible book value of $10 per share, a fair market value of assets $2 per share higher than the carrying value, and a market cap of under $800M. It is expected that LendingClub could benefit significantly from banking turmoil due to its cost advantage as a digital bank, and the potential to earn nearly $300M annually from its existing business and marketplace investors. Furthermore, the company is poised to capitalize on what could be the biggest refinancing boom with revolving credit.

The author has increased their investment in Schaffner Group following recent positive financial results. Schaffner has disposed of its loss-making Power Magnetics division, instead focusing on EMI Filters and Automotive sectors, where it holds a substantial global market share. The company's competitive business model involves designing components in Switzerland and manufacturing them in China and Thailand. The growing trend of electrification in various industries provides structural growth for Schaffner's components. Despite surpassing mid-term targets and maintaining a capital-efficient business model, the stock remains undervalued due to factors such as its weak long-term track record, lack of investor conviction, modest liquidity, and unexciting business model. To finance this increase in Schaffner, the author has reduced their position in Meier & Tobler. Notably, Schaffner's shares lack liquidity, with only 300-400 shares traded daily on the Swiss exchange.