Freelancer: Building a strong position in global micro-jobs market

Avoca chief investment officer Jeremy Bendeich outlines his views on Freelancer (ASX:FLN) and why he likes it is a ‘disruptive’ stock. Freelancer is building a strong position in the global micro-jobs market, where Western companies typically recruit service workers in emerging markets for projects at lower cost. Bendeich says: "We like the concept and Freelancer's potential to win the race to become the dominant global micro-jobs platform. Freelancer has a strong trajectory of quarterly revenue growth and, importantly, the ability to fund years of development through its cash flow. We don't envisage large debt raisings or equity raisings that dilute shareholders. With disrupters, we favour companies that can ease back on development costs if their growth options slow, harvest that investment and become quite profitable… If Freelancer works, its valuation could increase many times, but the risks are high so it is prudent to allocate only a very small proportion of the portfolio to it."