CPNG - Coupang: Sell Options On This Compelling Value For A Robust Annualized Cash Yield

2024-06-20 10:27:35 ET

Summary

• Coupang went public in 2021 and has fallen by over two-thirds since then. However, things have bounced back, and the company is on a solid path.
• CPNG's core ecommerce segment, new offerings growth, and reasonable valuation make it an attractive investment opportunity.
• Selling put options on CPNG appears to be the best way to play the stock.
• Doing so generates a substantial cash yield (22%!) while retaining the opportunity for investors to buy the shares if they dip more than ~10%.
• We rate CPNG stock a 'Buy'.

Back in the Spring of 2021, Coupang ( CPNG ) went public on the New York Stock Exchange to a considerable amount of fanfare. The IPO was, at the time, one of the larger, more respectable companies that was offering shares - if you remember, that period saw a huge number of SPACs merging with low quality companies, many of which have since gone bust.

Often likened to the 'Amazon of Korea' ( AMZN ), this ecommerce company made quite the initial splash, but has since petered out, falling by more than two thirds since its opening print:

For further details see: