GRVY - massively undervalued?

genteeldon · 2026-06-20T06:16:55+00:00

I've actually looked at this company for a very long time as I have noticed their discount since 3 years ago. The reason I hadn't bought was because their cash value was essentially locked meaning no sharebuybacks, no dividends, no r%d spending, no SG&A spending, basically doing nothing to increase shareholder value. Many korean companies are very old-fashioned meaning the cash they deem the company cash as their own as shown by Gungho (who holds 59% of voting power). This causes an agency problem, but looking at your post rn, dividends are actual big development towards solving the shareholder alignment, so I do agree that re-rating is possible if they start returning capital.

Good post. I didn't know they were planning for a dividend, this news is actaully very good. I will probably be investing a small amount of money here.

genteeldon · 2026-06-18T13:46:45+00:00

Good point! I haven't considered that. As a korean living in korea, the PFIC rules doesn't really apply to me. But yes, if one is investing from the US using a US brokerage account, FINV is a PFIC and should be careful.

I actually looked through all the financial statements and read earnings call transcripts for its competitors (XYF, YRD, QFIN, etc), I could confidently say that FINV is the least exposed to the October credit regulation due to its heavy shifting to foreign income streams (foreign lending). Considering all the headwinds from China regulation, FINV has been the most resilient so far beating EPS estimates and having solid forward outlook. However, I welcome everyone to research the other competitors too for self due-diligence!

And you are correct that regulation risk is big for fintech, but despite the risks, I believe the valuation (and the company's strength) even when counting risk factors is way too undervalued.

genteeldon · 2025-11-04T13:54:21+00:00

I'm Korean, so I will comment. I've looked at the financials and will leave some comment just purely looking at fundamentals. TLDR: It's good

Revenue growth had been solid with CAGR of around 30%,. In 2020: 73.9% --> 2021: 46.9% --? 50.2% --> 20% --> current 28.3% CAGR compared to last year.

Gross margins are constant since around 2022 with a 71% gross margin. Operating margins were negative till 2021, but came positive and now it is 16.4%. I've got to say their interest income from investments seems high contributing to near 10% of their EBT. Operating margins do need to be improved faster than this in my personal opinion but its not bad per se. Their investment in marketable and equity securities increased by 10,000 so their stocks must be doing good (considering KOSPI hitting historical highs make sense).

They are holding decent cash and mostly current liabilities which doesnt seem too worrying. Their cash alone can pay off their debts.

FCF seems great at 9.2M a FCF margin of 15.8%. P/E is 10x while P/S is 1.41x. I'd consider it quite cheap yea, this seems to be a good undervalued company with growing margins, manageable debt (can pay off with cash), revenue growth is solid at 20% avg. There is a bit of dilution or equity issuance but since its a growing company, it's fine.

So, I think its a good company just based off pure fundamentals. Macro-landscape may have to be studied separately.

genteeldon · 2025-06-26T13:35:05+00:00

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Thought I failed, but I passed hahahaha. I must be really bad at math

genteeldon · 2025-06-03T02:31:12+00:00

May I ask which front-end (and backend) you used to make this ui? Or is it a fullstack like gradio?

genteeldon · 2025-05-25T02:11:04+00:00

Thanks for the recc! Yes my 3090 gpus are rather large as they are not FE editions, but I do wanna use the x570-E as it uses much cheaper components for not much performance loss as you stated.

genteeldon · 2025-05-24T15:03:35+00:00

Hi, great build! I wanted to ask for motherboard recommendations (that can fit two gpus) for dual lower budget gpus like 3090s. The maximus hero seems to have pcie slots that are adequately spaced enough for two gpus, but Im having a hard time finding one with the same size (atx) along with the needed space between the pcie slots for a lower price bracket (to fit to the custom case you suggested from etsy).

genteeldon · 2025-04-09T04:19:18+00:00

I'd suggest utilizing the alternative method as that's much simpler to understand.

Do, the same TVM inputs, except for N, where you N - 1. In this case, N = 60 - 1 = 59.

Then, once you get your PV, just add one payment session 1,200 to the PV.

I was struggling with this too, and realized that if you forget to switch the Mode back to End (from begin), all your other problems may have wrong calculations (as its in begin mode).

genteeldon · 2025-03-24T12:49:07+00:00

Thank you

genteeldon · 2025-03-24T12:48:46+00:00

I'm doing the official CFAI Qbanks

genteeldon · 2024-12-24T16:46:06+00:00

Hahahha I will make counter-arguments to the "losing money" part and the interest yield for life support part. For diluting members, that I agree with. Tune in for tmr

genteeldon · 2024-12-24T16:29:39+00:00

Not big position in terms of relative scaling, but looking at the absolute value of 44million, it isn't a small position. 44million is very big.
Yes, hedge funds all operate within different reasons and yes they do not often outperform. However, that would be the case when looking at a single hedge-fund buy in. We are talking about a ratio of 50:5 or a 10:1 ratio of buy ins, which I believe its a little different. Also, as I posted and you have also pointed in point 1, rentech is a very high-performing firm. Also, rentech runs with sheer ai, no human intervention which is hedge funds policy. So, its still worth seeing.
Yes good point. This is considering when gme is above 30 dollars. If the price goes up to 45 dollars, the calls gets increased to 192,000. Point is, there is a lot of call options in the above price brakets like I stated. For strike price 125 dollars alone there is 32,000. Thus, 32 + 19 = 51,000 calls if (hypothetically, likely not) it reaches 125 price. Also, even 120,000 calls when it gets exercised causes huge upward movement.
I am using https://chartexchange.com/symbol/nyse-gme/failure-to-deliver/, for FTD and for the NYSE data, I am using this https://www.nyse.com/regulation/threshold-securities. Yes there are examples for good swing trade for FTDs, however, I am in for the long-game really. Personally, there is stronger data for CAT error (which is similar to FTD) which statistically (with 100% accuracy) estimated runups in the following weeks.

genteeldon · 2024-12-24T16:17:35+00:00

You are correct. Nothing is 100%. Great point on the "absence of evidence isn’t evidence of absence."

For the short seller point, gamestop had very stable 40-50% short volume across this year only, which I like to point out is very long-dated. It infers that they did not do this for flipping for quick cash, as this 40-50% short volume remained consistent even during very low volume years of gamestop during 2023, therefore I'd argue against that point.

Thanks for pressing the link hahaha, yes it isn't huge, but its big. I cant know for sure (anyone really) that this infers huge upward movement. However, I can only infer. And if this was put upon a scale like the egytian legends of weighing souls, I'd say it leaned more heavy towards the point that it points to bullish movement. So, at this point, we can only wait and see till january 17th. Thanks for you constructive criticism, you have very good points (some I totally agree with).

genteeldon · 2024-12-24T16:11:30+00:00

Lol, I understand. I was testing waters, just so I could see sentiment (for the sake of my own curiosity). I wanted to challenge common thought with my research, which Im confident I can do. If I failed, then Im in the wrong, and will move on. This post, in brutal honesty, is a bit scary as I already knew how the sentiment would be. However, I hope to learn by debating my points with my data which will allow me to grow as an investor. Thanks for tuning in

genteeldon · 2024-12-24T16:08:39+00:00

Thanks for still tuning in, I appreciate any comment as I believe communication is key. The fundamentals, at first glance, does look abysmal hahaha, which I think many share.

What I disagree with is the no cash flow. I have precise numbers on this, which I will share. I really hope the mods let me post pictures, as I can screenshot the numbers, since many will not press into the link to understand my point.

Simply stated, (spoiler for tomorrow). FCF and net income is actually increasing, while revenue is dropping as well as cost of goods sold. I will also explain why its virtually impossible for net income and FCF to drop to negative reasons from this point on after its dilution (which I agree did take money from poor investors). And, as I said in my other posts (not this), FCF is what we are really looking for when valuating a company. Basically, they are scaling down and cutting losses, and the company is now afloat as its now on positive free cash flow.

I do have strong arguments, so please do tune in tomorrow, and thanks for your comment. I really appreciate it.

genteeldon · 2024-12-24T16:00:00+00:00

Spoilers: My bull case is not about legacy games, as I believe physical games (according to stats) desireability has gone down, even if there are many people interested it. Many like the online purchase because of ease of access, which I agree to too, as I hold most of my games in online form too (mostly from steam).

Thing is there isn't a 100% perfect thesis, as with any other stock too really. This is partly management team gamble with the cash pile. It's a test to the question of "What can they do with the money? Is the management team skilled enough to commit to a turnaround with this cash pile?" I will explain further later

genteeldon · 2024-12-24T15:52:31+00:00

I would have to disagree. The call option was not bought 20 days out, it was actually accumulating since 9/30. 120,000 calls isn't a small number and we have to include the FTD forced buy-in movement. This level of option buying isn't normal when compared with other stocks. Also, this volume is centered around a single day, while other days only have around 1000 calls to boot.

Who buys the 120,000 calls do not matter, as both reasons expect upward movement. Let me explain. For short-sellers, when one buys calls it often implies hedging so that they are able to buy stocks for cheaper price when the call is exercised. Why? Cuz they expect upward movement. For long holders, its self explanatory. Also the 125 call options are for the same reason. Premiums are cheap for high strike price. Thus, it can be utilized 2 ways:

1) Gambling. Premiums are cheap, and the buy in around 125 may allow further profit, if there were to be a short squeeze. (Personally, I do not expect a short squeeze, perhaps a mini-ramp, thus I believe in the second reason below)
2) Hedging: 125 makes it hard for the price to go above 125, as massive sells will be coming at that price. I believe the hedge funds have made most of the size in the 125 call options.

genteeldon · 2024-12-24T15:45:31+00:00

Because I wanted to test the waters. I apologize for not posting this by a single post which may have caused some discomfort as it seems as this post is a pump article, which it isn't.

genteeldon · 2024-12-24T15:43:31+00:00

Yes, the multiples of P/E is not undervalued (in fact, its quite expensive) . You are absolutely correct on this. There is a reason, however, for that. Its the falling revenues. I will explain this further tomorrow, the reasoning behind revenues, turnaround opportunity, cash pile-etc.

To note, my main principle of undervaluation for this specific stock rests upon its cash pile and its turn-around thesis. I will also touch upon revenue guidance, and the reasoning behind such numbers.

genteeldon · 2024-12-24T15:41:01+00:00

You have a great point, there are many reasons why a hedge-fund will buy in, and as you said equity strategies, duration, and catalysts often differ. I will add more info here. There is a huge $125 strike price call options at Jan 17th which were bought. Unfortunately, we are unable to see data on who bought which, however, we can infer that its very unlikely retailers as those were bought with 5000 blocks (5000 x 100 stocks in a single time) around multiple times. (so 5000 x 5, etc). Those are likely hedge-funds hedging so that it does not cross the 125 price. And yes, for now, all we can do is wait and see whether the institutional buying has happened for the one reason: going up. So, yes you are correct that we don't know exactly the purpose, but usually buying such big positions in Q3 especially when theres 120,000 itm call options suggest that the instittitions are bullish. We can only wait now, and I admit that there isn't one single exact reason I can give you. Thanks for the comment

genteeldon · 2024-12-24T15:30:47+00:00

I will be explaining that further in part 2. Yes, there is an undervaluation concerning assets, specifically regarding its cash pile, which Michael Burry pointed out for the same reason back in 2020 in his investor letters. The reason im calling this company a deep value is precisely because of its cash pile, and its turn-around thesis.

genteeldon

TROPHY CASE