Each of these values can help the investment analyst calculate the relative value of a company and to evaluate whether the company is overvalued or undervalued.

Pure play companies are helpful inputs into these analyses because they are much more directly comparable with each-other. Conglomerates, on the other hand, are not readily comparable because their results reflect numerous industry sectors.

Realistically, the term pure play is always used as an approximation, since companies almost always have some amount of cross-industry exposure.

This is particularly true when looking at large, publicly traded companies. Warren is conducting an analysis of the U. Specifically, he wants to evaluate the relative attractiveness of various U.

Popular Courses. Investing Stocks. What Is a Pure Play? Key Takeaways A pure play is a company that focuses on only one line of business.

These are different than diversified companies which have diverse product lines and sources of revenue.

Pure plays have easy-to-understand cash flows and revenues, and tend to cater to a niche market. Pure plays tend to do poorly in bear markets and come with a higher degree of risk.

Pure plays tend to be e-commerce companies, but can also be large corporations like Starbucks. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.

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Analyzing pure-play stocks is a different process. These stocks have a single product in a single market, so the market opportunity is relatively easy to gauge.

The same can be said for assessing the success of the company relative to its peers. Industry Correlations. Pure-play stocks are generally heavily correlated with the industry in which they work.

For example, Chipotle has a singular focus on fast-casual Tex-Mex dining, making it a pure-play in the fast-casual dining industry.

These correlations between pure-play stocks and the industries they represent make analyzing these opportunities even simples.

Pure-Play Stock Cons Although there are plenty of benefits of investing in pure plays, there are also several risks unique to this class of stocks.

Some of the most important risks to consider include: A Competitor Taking the Lead. BlackBerry was a pure play in smartphones, and then Apple took the smartphone market by storm, leaving BlackBerry in the dust.

Ultimately, when a company has a singular focus, it must stay on top of its industry to maintain its position as a viable investment opportunity.

While industry correlations can have their benefits in pure-play stocks, they can also lead to serious pain. For example, if the value of oil falls, pure-play energy-sector stocks feel the pain.

Because they put all of their eggs in the energy basket, they have nothing to fall back on when the price of their flagship commodity goes down the drain.

The same could happen to Chipotle Mexican Grill if consumers start to veer away from fast-casual dining. A Key Product Failing. For example, the biotechnology company MannKind invented a product known as Afrezza, an inhaled insulin that was intended to free diabetics from the need for injections.

When the product was under development, the belief was that it would fly off of the shelves. However, when it finally launched, its sales disappointed and the manufacturer terminated its production.

As you analyze opportunities, keep an eye out for the following: A Commercialized Product. The CMake build configuration was used to generate this build and hopefully, we'll be able to deliver builds at a much faster pace from now on.

In any case, here's the list of new stuff in this build: - Compatibility fixes ie. Happy Late! New Year to everyone! Let this first build be the first one in a long string of builds that will lead us to amazing PS2 emulation on PC and mobile devices!

Here's what's new: - Improved VU flag handling fixing some rendering and collision detection issues in some games ex. Do not sign up if you like waiting 18 hours or more for customer support and do not signup if you like extremely slow players who enjoy stalling fast play!

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