Alab

Here's the note I posted when I updated that article last week:This ad is still circulating heavily, ALAB shares have now fallen pretty steadily since our first article (still above the $36 IPO price), as we await earnings next week (Aug. 6) — the valuation has come down a bit, and more (and higher) analyst estimates have been published, but valuation remains extreme at 22X current year sales. Earnings outlook now is that they’re trading at 100X 2024 estimated (adjusted) earnings, with 50% expected annual earnings growth for the next couple years. There was not much insider selling after the first quarter lockup expired (letting insiders sell 20% of their shares), but the big lockup for insider shares will be right after earnings, on August 8, so a lot rides on next week. Still too much of a valuation extreme, given my lack of clarity about any unique advantage their products have over competitors.