Simion Furdui @Inv1nctus: "𝙉𝙚𝙬 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝘼𝙙𝙙𝙞𝙩𝙞𝙤𝙣: 𝙒𝙝𝙮 𝙄’𝙢..."

United Kingdom

𝙉𝙚𝙬 𝙋𝙤𝙧𝙩𝙛𝙤𝙡𝙞𝙤 𝘼𝙙𝙙𝙞𝙩𝙞𝙤𝙣: 𝙒𝙝𝙮 𝙄’𝙢 "𝘿𝙞𝙖𝙡𝙞𝙣𝙜 𝙐𝙥" 𝙊𝙤𝙢𝙖 $𝙊𝙊𝙈𝘼 I’ve just added a new position to the portfolio that fits perfectly into our "Value + Growth" barbell. While the market is obsessed with giant tech, there is a massive structural shift happening in the background: small and mid-sized businesses are finally ditching their ancient copper desk phones for cloud-based systems. Ooma $OOMA (Ooma Inc) has built a platform designed specifically for these businesses, and the financials are starting to look like a "coiled spring." 𝟭. 𝙏𝙝𝙚 "𝙋𝙊𝙏𝙎" 𝘾𝙖𝙩𝙖𝙡𝙮𝙨𝙩: 𝘼𝙏&𝙏 𝙞𝙨 𝘿𝙤𝙞𝙣𝙜 𝙩𝙝𝙚 𝙎𝙚𝙡𝙡𝙞𝙣𝙜 𝙛𝙤𝙧 𝙐𝙨 The biggest driver right now is the death of Plain Old Telephone Service (POTS). • The Forced Switch: AT&T ($T) is aggressively phasing out copper networks and hiking prices (sometimes by 200% to 400%). Businesses literally cannot afford to stay on old lines. • AirDial Success: Ooma’s "AirDial" segment is the solution. Bookings grew ~80% YoY this quarter. As the "shutdown" plans accelerate through 2029, Ooma is standing right there to catch the falling customers. 𝟮. 𝙁𝙞𝙣𝙖𝙣𝙘𝙞𝙖𝙡 𝙃𝙚𝙖𝙡𝙩𝙝: 𝙍𝙚𝙘𝙤𝙧𝙙 𝙀𝘽𝙄𝙏𝘿𝘼 & 𝘾𝙖𝙨𝙝 𝙁𝙡𝙤𝙬 Ooma isn't just growing; it's becoming a high-margin cash machine. • Profitability Surge: Adjusted EBITDA grew from $23.3M (9% margin) in FY2025 to $33.9M (12.4% margin) in FY2026. • The Subscription Engine: Their core subscription gross margin is a juicy 72%. • Smart Capital: They used their strong $22M Free Cash Flow to pay down debt and buy back $16.8M in stock over the last year. I always love to see a management team that prioritizes both growth and debt reduction. 𝟯. 𝙑𝙖𝙡𝙪𝙖𝙩𝙞𝙤𝙣: 𝘼 𝙋𝙤𝙩𝙚𝙣𝙩𝙞𝙖𝙡 𝟭𝟬𝟬% 𝙐𝙥𝙨𝙞𝙙𝙚? This is where it gets really interesting. Despite the growth, Ooma is trading like a "boring" value stock. • P/E Discount: Ooma trades at a forward P/E of just 10x-12x, while its peers often trade at 20x-25x. • Earnings Growth: With expected earnings growth of 24% this year, the stock is significantly undervalued relative to its performance. • Fair Value: Based on normalized multiples, I see a fair value around $21 (well above current levels), with the potential for shares to double over the next 12-24 months as the market realizes the "lifetime value" of these recurring subscriptions. 𝙏𝙝𝙚 𝘽𝙤𝙩𝙩𝙤𝙢 𝙇𝙞𝙣𝙚: Ooma is a high-growth business disguised as a value stock. By capturing the forced migration off old phone lines and upselling AI features, they are positioned for a massive re-rating. $SPX500 $NSDQ100 $GOLD $BTC

Not investment advice. The author may have financial interests in the mentioned instruments.