ETSY ON A TEAR, page-11

With 271.48 million shares on issue, a market capitalisation of $2B AUD would equate to a share price of $7.37 for RedBubble.

I consider this a likely outcome by the end of THIS calendar year or at the very least, once the Q2-FY21 financial year results are released at the end of January 2021. All signs indicate that this Thanksgiving and Black Friday weekend is set to be the biggest in the history of this company.

It is extraordinary that this company is trading on circa 2x run-rate sales (circa $600M AUD as of the Q1-FY21 result) compared to peers (Etsy) at circa 14x sales ($20B USD valuation).

For a detailed comparison of RedBubble with Etsy, take a look at the following article: https://www.tepinvestments.com/blog/redbubble-creating-the-worlds-largest-marketplace-for-independant-artists

RedBubble is the largest holding in my portfolio. I will be pragmatic and take some profits off the table at around the $7 mark, but long term, like XRO and MP1, this is a company where you can "let your winners run".

T.E.P.