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Our 9th pick addresses the problem that Elon Musk described as the biggest threat to civilization.

June 19, 2024
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Wiko Steyn
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Wiko Steyn

Unicorn Portfolio Update 6

 

Progyny

Progyny is still largely floating under the radar of most investors, yet it is attempting to solve a major crisis. 

"I think one of the biggest risks to civilization is the low birthrate and the rapidly declining birthrate. And yet, so many people, including smart people, think that there are too many people in the world and think that the population is growing out of control. It's completely the opposite. Please look at the numbers if people don't have more children, civilization is going to crumble, mark my words," Musk said at the Wall Street Journal's annual CEO Council.

Progyny is focused on the infertility market. Partners that are having trouble conceiving. The data for this problem does not look good and reproductive problems for both men and women are rising at an alarming rate. Progyny operates as a fertility management platform that offers their clients the optimal chance of having a successful pregnancy. Progyny's business model is to sell its services to employers which then include them as work benefits packages for their employees. The company uses a data-driven approach and the numbers really speak for themselves as they have proven that their members have a much higher chance of becoming pregnant and a much lower chance of having a miscarriage. Progyny's mission statement: 

We believe everyone should be able to pursue their dream of having a family.

Unfortunately, we don't invest in stories so let's have a look at the business. A relatively small company ($3.1B), which was named to Inc.s annual Best-Led Companies list in 2021, already profitable and still growing rapidly with a large TAM. This sounds like all the qualities we are looking for in the Unicorn Portfolio. Our positive initial impressions were reinforced when we took a deeper look and concluded that this company firmly falls into our Great Business category with a score of 73.

 

Portfolio Updates Summary

Along with our starter position in Progyny, we are also adding to our Digital Turbine position after an overreaction to their earnings. The company changed the way they report revenue and this sent the trading bots into a frenzy.  Digital Turbine still has some synergy problems with their recent acquisitions, but at their current valuation, the downside risks should be limited.

  • Buy $250 PGNY at $29.51
  • Buy $250 APPS at $20.01


 

Disclosure

This is not financial advice and is only based on the author's opinion. This is not buy or sell recommendations of any stock.  The $10K is not real money and only a demonstration of a typical portfolio. The Unicorn Portfolio is a high-risk portfolio and should always remain a small allocation of your overall assets. This is an actively managed portfolio where we will buy and sell positions as we deem fit without any regard for taxation. Remember, all selling of stocks triggers a tax event in most countries and it is the investors personal responsibility to always remain tax compliant.

 


 


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