Joe Kunkle @OptionsHawk

Founder and CEO of OptionsHawk. Creator & Moderator of the Trading Hub, the Best Live Market Coverage **Not Investment Advice*** https://t.co/Qat4Ms2tCc optionshawk.com Missoula, MT Joined July 2009

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Joe Kunkle @OptionsHawk

10 hours ago

The replacement cycle is real!

One of the greatest groups this past Q that nobody discussed much any more, Life Science Tools, cycle bottomed, moat leaders $DHR $TMO strong $WAT $RVTY and many others plus all the Genomics/Diagnostics names $TEM $TWST $GH $NTRA

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Joe Kunkle @OptionsHawk

10 hours ago

$BRKR small buyer in May 75 calls 7.40 offer sweep, fits the LST theme

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Joe Kunkle @OptionsHawk

11 hours ago

$DNA +18% today

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Joe Kunkle @OptionsHawk

11 hours ago

$QMCO up 17% The power of utilizing industry-wide and then drill into stock specific rel. strength price-action indicators!

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Joe Kunkle @OptionsHawk

11 hours ago

Izze was the best sparkling drink I have had, but then I ordered the Thrive version and was like this is terrible..... like always, it is Stevia

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Joe Kunkle @OptionsHawk

11 hours ago

$BLLN up 10%, gap fill playing out nicely

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Joe Kunkle @OptionsHawk

12 hours ago

SPS Commerce (SPSC) 600 January $85 calls buy $6.62, adjusts the $65 calls, recent talk of M&A interest

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Joe Kunkle @OptionsHawk

3 months ago

SPS Commerce (SPSC) interesting trade sells 1000 January $50 puts to buy the 65/80 call spreads

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Joe Kunkle @OptionsHawk

7 months ago

I'll do this one public...always liked this Co. and is wildly cheap at these levels... Unusual Call Spread in High Quality Software Player at Record Cheap Valuation with Limited AI Disruption Risk SPS Commerce $SPSC with an interesting trade of 3/3 as 1000 July $80/$105 call spreads bought to open for $2.40 offering a nice risk/reward. SPSC also has 1000 July $105/$135 call spreads bought in open interest so the 3/3 trade may be adjusting the long call leg lower for a higher Delta. There are also 350 short July $80 puts in open interest. SPSC was a major small cap winner from 2010 to 2024 but shares have dipped to $60 from $220 highs though retesting a key 2020 breakout and value shelf this quarter. The timing of the unusual options trade comes after recent reports that activist Irenic Capital is pushing the company to explore a sale. Irenic thinks SPSC is a high‑quality, under‑levered, slower‑but‑steady grower that would command a premium multiple in private equity or under a larger strategic buyer. SPS Commerce is a vertical SaaS “network” business for retail supply chains, with most of its value in a sticky, high‑margin recurring revenue base rather than one‑off licenses. It operates a cloud platform that connects retailers, grocers, distributors, suppliers, 3PLs and marketplaces and automates EDI and related data flows such as orders, ASNs, invoices, inventory and item data so trading partners don’t have to build and maintain their own point‑to‑point integrations. The business is built around three main solutions: Fulfillment (full‑service EDI and order management), Assortment (item and content data syndication), and Analytics/revenue‑recovery tools (enhanced by the Carbon6 acquisition), all sold on a subscription basis to over 54,000 recurring‑revenue customers globally, with SPS acting as the outsourced integration and compliance team. SPSC sits at the intersection of retail tech and supply‑chain integration at a time when omnichannel complexity continues to rise even as top‑line retail growth slows. Retailers and brands are juggling stores, e‑commerce, marketplaces, dropship, and DTC, which dramatically increases the number of trading partners and document types. SPS’s network model lets each party connect once and exchange standardized EDI and item/inventory data with all other partners, which is hard for smaller players to replicate in‑house. SPSC has a market cap of $2.24B and screens extremely cheap at these levels, 11.8X Earnings, 2.6X EV/Sales and 14.75X FCF while consensus sees 6-8% annual topline growth through FY28 with double-digit EBIT growth annually. SPSC valuation is at the cheapest in its history despite all efficiency/operational metrics at or near record highs such a margins and ROTC. SPSC’s model is highly recurring and efficient: about 54,600 recurring‑revenue customers, rising ARPU (~14,350 dollars in 2025), and 100 consecutive quarters of revenue growth. SPSC runs with minimal or no debt, throws off robust operating cash flow, and has been returning capital via buybacks. On the product side, SPS continues to invest in analytics, item data/Assortment, and revenue‑recovery/chargeback tools. Management is also focused on expanding internationally and growing 1P retailer and 3P marketplace integrations. SPSC’s core business is structurally harder for Claude‑style tools to displace than generic horizontal SaaS, and the company is already embedding AI into its own platform. SPS Commerce sits in a different place in the stack. Its value isn’t primarily the code; it’s the network with 300,000‑plus trading connections, deeply standardized EDI/item data, and managed compliance with thousands of idiosyncratic retailer requirements. AI won’t easily replace the decades of mappings, trading‑partner contracts, service teams, and exception‑handling SPS has built. SPS is selling a managed network, rich domain expertise, and now AI‑enhanced workflows built on top of proprietary, high‑quality data, not just a generic app that can be cloned by a prototype. Over time, if SPS keeps executing on MAX and similar features, AI is more likely to expand its margin and stickiness than to obviate the need for its platform.