The rise and rise of Europes 'underdog' markets

Shares in Polish e-commerce group Allegro rocketed up 60% on their debut, giving the e-bay style online retailer a whopping market value of almost $19 billion and making it Europe’s largest initial public offering (IPO) so far this year. With explosive growth expected year on year as buyers continue to move online for one of central Europes most recognised online brands, Investors are demonstrating, once again, that there is a growing interest for some of Europe’s ‘underdog’ stock markets.

In fact, in 2019 the best performing stock market in Europe was Greece, it’s main index rose an eye-watering 43%

Last week @pb1 wrote a piece asking us to ‘Look Around’ and with Pynk’s ever-expanding global crowd, it would seem we are perfectly suited to combine this growing trend for emerging European markets with Pouneh’s sound, financial considerations.

Which markets do you think are the ones to watch?

Will US stock markets fall from grace post-COVID or bounce back?

What tips can you offer Pynksters when you ‘Look Around’ the country where you live?

Disclaimer: This information does not constitute any form of advice or recommendation by Crowdsense Ltd. and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision

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Tech stocks are always good to watch. I’ve liked health sciences for quote a while now, bit I think especially important now due to CoVid.

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I agree with @KarenM. COVID has made people to be more focused on gadgets. I think the tech and e-commerce are the ones to watch.

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Although I like tech companies, I think valuations of Big Tech are unbelievable right now and have no relation to what we can reasonably expect these companies will achieve in the future, I don’t think now is the time to invest here because prices are crazy.

I agree to be on the lookout for the e-commerce industry, but again, I wouldn’t go for the typical Big E-commerce company like Amazon, currently trading @ 125 forward P/E :exploding_head:; here thinking of the ‘Look Around’ tip, for example, in Ireland -and I’m sure in the UK as well- Deliveroo is booooming, they must have doubled or tripled their operation in the last 6-9 months, and I believe their IPO is coming soon, now that’s an interesting e-commerce company to have in the radar. Another similar kind of niche e-commerce company like Rappi: consumer tech startup looking to be the “ everything store”. I know is booming as well in Mexico and Latin America in general because of Covid.

I’d summarize by saying that with the Covid situation not going away any time soon, emerging e-commerce/delivery /stay-at-home service companies should be markets to watch out for.

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Totally agree with you Carlos re some Tech valuations. My other problem with the obvious online shopping plays etc is that although their growth seems assured, it’s very difficult to expect the year on year comparisons as we go into 2021 to be very good (and potentially disappointing) when compared to the massive boom in the spring of 2020. So this difficult year on year comparison on top of stretched valuations makes me cautious.

There are always winners however bad things get and I too have been wracking my brain for Covid beneficiaries at attractive valuations. One big theme in my personal portfolio that has done really well over the past few years is what I call ‘alternative sources of funding’. As banks have retrenched and become unwilling and unable to take the risk of launching new products in niche funding areas, a great opportunity of really nice profitable specialist funding niches has opened up in a number of areas. Without competition from the banks, these niches are highly profitable for some niche funding specialist companies.

I’m going to write a whole piece on this but within this whole theme, I’m very excited about the prospects for Litigation funding specialists - their business booms in the aftermath of downturns as corporate disputes inevitably increase in tougher times. Interestingly, litigation funding business boomed even more so in the aftermath of a massive one-off event like the 2008 crisis, so I’m betting the next two years will see a similar sizeable upturn in business for them. Stay tuned, I will be writing on this in detail…

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