Value Investing with Sven Carlin, Ph.D. on $VRSN (Nov 7, 2026)
The speaker owns VRSN and will not sell despite its 20–25% five-day rise; he is improving its portfolio standing. Reasons: EPS guidance confirmed, savings rose from $500 million to $1 billion, nine-month free cash flow reached $2 billion, and $500 million Q4 buybacks resume (about 2 billion annualized, a 7% repurchase yield). He expects the 7–8x P/E not to last and cites substantial 2027–2028 improvements, but warns slower quarters or recession could make the stock fall. He will hold until a suitable value release.
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This time we'll start from the more interesting side with Viserve, which has just announced its earnings, and the stock has risen by 24% over the past five days . I own the stock in my diversified portfolio on my stock market research platform and I have updated it there.
Let's take a look at "Vicerve". This is one I quoted from Michael Perry, who also discussed last week how, based on a similar valuation to the Global Payments takeover rumor, Vicerve would be worth at least 100 to 120.
The earnings per share guidance was confirmed. Savings have increased from 500 million to 1 billion, and free cash flow reached 2 billion for the first nine months, which is very positive.
Perhaps most importantly, they are resuming $ 500 million in buybacks in the fourth quarter. This means 2 billion on an annual basis or a 7% repurchase yield. The price-to-earnings ratio will not remain at eight if this situation continues.
But overall, a good question is who the CEO is, and what the focus is now, growth or savings? The focus is on both of them. So there were very operational discussions in the conference call that I listened to.
The bottom line is yes, the stock is up 20 to 25 percent, but I'm actually improving the bonus on the square thanks to the better positive news driving it. Therefore, there is no sale at all.
This was, let's say, a high-risk, high-reward situation. Substantial improvements for 2027 and 2028 and a price-to-earnings ratio of seven, along with a seven percent repurchase yield, will not last long.
Of course, if the coming quarters are slower, and things like that, the stock may fall again and it may look ugly. So there is a risk, the risk of recession affects the company, but they have a vital basic infrastructure that attracts many customers, 80 percent of banks, and the number one trader in the United States.
The infrastructure is there and very cheaply based on the failures of the previous administration, poor capital allocation, and great figures from Argentina due to inflation, and things like that .
Therefore, I will continue to hold onto it until a suitable value release occurs.
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