* Traditional Nursery Rhyme

“Here’s an idea, let’s think of a company that will do well in the world of social distancing”.

“Right, got it, how about Zoom, the online conference app?”

“Great, what are its sales?”

“Good, they have grown from $300m last year to $600m this year and forecast to hit over $900m next year. And it’s EBITDA positive”

“Fantatsic, what’s the EBITDA for this year?”

“Err $38m, which I guess makes it around about a 6% margin”

“Hmm, had hoped for slightly better. But never mind. It’s a great story. What’s the market cap?”

“Um, $35bn. So that is an EV to EBITDA of approximately 1000.”

“Wow, the founders and the management must be super rich!”

“Well, not really, it’s all private equity guys”

“Perhaps we should think about BHP with a market cap of 4x the size and sales of 40x the size?”

“Nah, China is never going to buy any commodities again, but we are all going to Tele-conference!”

“Good point!…It’s a great theme story. But tell me, does anyone else do this this? Is there a good ‘moat?”

“Well, there is Skype, and Facetime and Google Hangout..and Cisco Webex, Starleaf, Jitsu Meet, Whereby, RemoteHQ, Talky, Highfive, 8×8, Bluejeans and all the kids are using Houseparty.”

“Sounds like they have the market sewn up. Can I buy it with my Bitcoin?”

‍