$DISCA likely bottom (4/5)

22 gru 2021

Conviction: 4/5


General Thesis

• weekly RSI just grazed oversold levels, which means it could go down some more
  
• bounced off long-term (2008) support trend line
  

Growth

• Gross margins (50%) is pretty steady
  
• Revenue growth (23%) slightly above historical average, bounce from lows in 2020
  

Value

• P/FCF below average (25th percentile)
  
• P/S below average as well
  

Fundamentals & Balance Sheet

• low debt to asset (<1)
  
• quick ratio good (~2)
  

Potential Risks

• RSI could spike down to oversold area some more... unlikely because it just did that in 2020??
  
• Historically no bullish divergence before bounce
  
• Currently below all moving averages