Digital Turbine, Inc. (APPS)

Have been busy at work recently so not found too much time to comment here. I wanted to comment on what it means to me, to be a 'long term investor', especially in light of the recent share price weakness. The term 'long term investor' is used such a lot these days that you could be forgiven for thinking the world is made up exclusively of either short term traders OR long term investors. I'm not sure what other long term investors think, but here's my perspective. As a long term investor I consider myself a part-owner in a business. Although not hands-on, I will look to understand all aspects of the company ranging from what they do, how they've been performing, profitability, sales, recruitment, staff welfare and culture, ambitions, resilience, how effectively they deploy capital etc. I'll know the backdrop of the market in which they operate in, and consider whether that sector encourages or concerns me (I am a top down selector, so I look for the best performing companies I can find and then exclude sectors I might dislike eg. crypto, pharma, tobacco etc). I will spend a lot of time considering this investment and even if I like what I see, I might consider the timing or price not right, so I might wait. I might similarly consider the price to be one of the less important factors (within certain parameters) as I might expect fair terminal value to be many, many times my initial purchase price that a few dollars per share difference is largely irrelevant. Once everything feels right and I've made my initial investment I'll keep learning and tracking business performance. If the company keeps growing shareholder value I'll feel comfortable. If business performance falls short of expectations I might be a little concerned, but all great companies have ups and downs, and regardless things like customer renewals, cancellations, capital expenses, recruitment, macro events etc don't naturally smooth themselves over a financial quarter, so I'm keen to hear the narrative that explains these changes. Meanwhile 'the stock market' is running a daily auction to not only offer me further shares but also for me to sell my business stake. I can take it or I can simply choose to ignore it. As a part owner in a business that I've spent a lot of time researching and evaluating I'll have a very good idea of where the company is, how it compares to others and importantly what I think the future looks like. I am no more likely to accept a low offer for my shares that I would be to change employers just because the share price of a competitor had done better in the last few months. So I often find the advertised share price an irrelevant proxy for the value of the company - it may as well be a parallel track of participants trading sentiment tokens, which is largely what it is of course much of the time. So if anyone is interested in my thoughts for the share price at the moment, my comment is that it (in my opinion) does not even closely reflect the value of the business so my likelihood of selling goes even lower (zero basically) and my likelihood of increasing my holding goes up. So I genuinely focus on what I own as a part-owner in a business with great sales, profits, growth.. and pretty much disregard the share price offered today by the market. I'm entirely focused on the next business update which I hope will show expansion, growth, efficiency, and we can then debate what price we each think that's worth to us, but I'd expect $APPS to be closer to $140 right now with a number of assumptions which will be validated in a few weeks. I have no pressure to sell, and every reason to continue to hold a business that has showed incredible expansion if the outlook remains strong. Red days mean nothing to me so long as the company continues to grow in its reported earnings. Having mental fortitude is highly important once you've figured out a way to select stocks that fit your investment style and objectives.

Repost from three days ago and I think it’s worth repeating. Patience Patience!

EmmittEmmitt3 days ago
@Michael the valuation is there. I do think this SHOULD be 115-120 but I think what we think and what will happen are separate issues. Reason I say this is because this acquisition hasn’t been fully absorbed. I think large investor are sidelined to get a good picture of several ER. See what’s reported. Oct we see most of the terms of the acquisition completed except the unknown ones which will need an additional ER and K10’s to see what the terms of these are ( 50 million incentive). This ER will need to be complete blow out and above to move needle. Gaining momentum after the 2nd qt and 3rd and so on. But I think we need one more after this. Sorry if you where expecting run up but things changed with May-june 10k. Then again the market has a mind of its own sometimes and there could be surprise run up. Calling it the way I see it. Patience it will come.