Research Vault

  • All Initiation Reports have the price at initiation and upside potential listed
  • Bias towards small and mid capitalizations; sector agnostic; about 90% U.S. & 10% Foreign names
  • Each "Open" position will be sized between 5%-15% in the Pernas Portfolio
  • All closed positions will have the performance result listed
  • About 40% of Pernas Research's Initiation Reports receive a "neutral" rating. Read about why we publish neutrals here

Upwork ::UPDATE:: CLOSED

We have sold our Core Position in Upwork (NAS:UPWK)—we are up 66% in the name since initiation. We believe Upwork is trading close to fair value and are taking profits. Upwork released full-year 2024 earnings yesterday after market close. Below are the earnings highlights. The stock reaction was slightly positive (+3%). We believed Upwork had multiple revenue levers the market was overlooking, allowing it to generate additional revenue without directly increasing the platform take rate.

(NAS:PSFE) Paysafe: The Payment Powerhouse Capitalizing on iGaming Growth

Paysafe is a global payments provider specializing in high-risk verticals such as iGaming (primarily online casino and sports betting), digital wallets, and alternative payment solutions. The company is positioned to benefit from secular growth in online payments and the rapid expansion of iGaming in the U.S., where legalization continues to unlock new opportunities. Paysafe is successfully transitioning into a cohesive, growth-oriented payments platform after years of fragmented operations borne from its heavy M&A history. With exposure to high-growth markets, a proven regulatory track record, and a focus on...
    • Initiation Price: $19.64
    • Upside: 50%
    • Current Status: Open

(NAS:EGAN) eGain: The Rise of Knowledge Management Systems

EGAN provides workflow solutions for contact centers, known as Knowledge Management Systems (KMS). These systems aggregate up-to-date information enabling customer service agents to deliver high-quality responses to customers. With the rise of generative AI, enterprises increasingly recognize the value of such solutions, leveraging AI agents to provide superior customer interactions at reduced costs—a technological sea change. While eGain has strong offerings in this space, its ability to capitalize on...
    • Initiation Price: $5.33
    • Upside: Neutral
    • Current Status: No Position

Vusion Group ::UPDATE:: CLOSED

We have exited our position in Vusion (PA:VU), achieving a 185% gain. Our initial position was established in 2021 (link here), with significant additions made in 2023 after an unfounded short report caused the stock to decline by 60%, followed by a strong recovery. Vusion is a market leader in electronic shelf labels (ESLs), digital price tags that enable retailers to automate price changes across thousands of SKUs. The company is led by highly capable management. that has established a dominant position in the industry, securing notable retail clients such as Walmart. ESL adoption is still in its early stages, ...
    • Current Status: Closed
    • Result: +185%

Richardson Electronics ::UPDATE:: CLOSED

We have exited our position in Richardson Electronics (NAS:RELL) for a 10% gain since our initiation report. In our report, we believed that RELL had about 50% upside. While the company benefits from competent management, we have revised our outlook due to greater-than-expected market cyclicality and the challenges posed by the company's diversification across multiple sectors. For background, RELL is  a distributor that providing engineering solutions through systems integration, prototype design, and manufacturing. It operates in industries ranging from semiconductors and...
    • Current Status: Closed
    • Result: +10%

(NAS:AKAM) Akamai: Transition to Edge Computing and Security

We were initially excited to research Akamai due to its strong positioning at the nexus of several, tech-driven trends we have been studying: edge computing, cybersecurity, cloud services, IoT/5G, and AI. Over the years, Akamai has transitioned from a leading content delivery provider (“CDN”) to an integrated player offering content delivery, advanced cybersecurity, and edge compute services. While Akamai’s strategic moves and broad technological reach make it intriguing, we find the company's reliance on heavy capital expenditures and acquisitions make it difficult to determine whether its growth strategy will...
    • Initiation Price: $101.1
    • Upside: Neutral
    • Current Status: No Position

(NAS:SGH) Smart Global Holdings: Pivoting to an AI Specialist

Smart Global Holdings is made up of three subsidiaries and although the company’s past shows a diversified holding company, it is now evolving to an operating one. SGH is in the early innings of their turnaround, namely focusing the company on High Performance Computing (HPC) around their brand Penguin Solutions (this will also be the name of the company in the near future). While we are optimistic about the company's prospects, we require further evidence of execution of their HPC segment along with increased enterprise adoption of AI solutions, either on-premise or at the edge, before considering
    • Initiation Price: $20.95
    • Upside: Neutral
    • Current Status: No Position

(NAS:UPWK) Upwork: The Undervalued Giant in Freelancing

Upwork (UPWK) is a global leader in the online freelance marketplace, offering a platform for businesses and independent professionals (aka freelancers) to connect and collaborate. The stock has declined by ~85% from its highs, due to concerns over slowing growth and fears of AI disruption. However, our analysis shows that these concerns are misplaced. The slowdown in growth is driven by temporary cyclical factors, and the long-term trend of businesses increasingly relying on skilled freelancers is set to continue. The market perception is that the business case for Upwork is weakening when in fact it is strengthening...
    • Initiation Price: $9.64
    • Upside: 70%
    • Current Status: Closed
    • Result: 66%

(NYSE:PATH) UI PATH: Automating or Getting Automated Away?

PATH specializes in developing automated workflow systems for companies. It boasts over 11k customers including 80% of the Fortune 10 and 61% of the Fortune 500. Their customers span industries and include Adobe, Applied Materials, Chevron, CrowdStrike, CVS Health, and Uber. As enterprise spending has slowed and the threat of Gen AI has introduced obsolescence risk, PATH has dropped approximately 80% since its IPO in 2021. However, we believe that generative AI can enhance PATH's future prospects by significantly boosting business automation workflows. PATH can capitalize on its existing enterprise ...
    • Initiation Price: $12.17
    • Upside: Neutral
    • Current Status: No Position

Burberry ::UPDATE:: ADD

We added to our Burberry position (LSE:BRBY). Burberry is down roughly 45% since our initiation report in February, with today marking a 16% drawdown on the news that the CEO is stepping down on the heels of another bad quarter (same store comps were down 20% yoy and the dividend was cut). When Akeroyd came to Burberry, the strategy was to go upscale to take advantage of the brand heat generated by the new creative director Daniel Lee. The strategy proved aggressive- their core customer was squeezed by both deteriorating financial conditions and higher priced items. Under the new CEO Joshua Schulman...