As foreshadowed in the weekly commentary I have made some portfolio changes. The rationale for these changes was in the weekly commentary. That said, if anyone has questions about why I have made these changes, please let me know and I will answer rapidly. I do not like to make a lot of changes, but…
Summary Rubrik, a fast-growing cybersecurity company, offers a strong entry point at $31/share despite current market risk aversion and geopolitical concerns. The company’s ARR growth is robust, with a 40% year-on-year increase , reflecting strong user adoption and satisfaction. Rubrik’s advanced data protection and recovery solutions, including genAI integration, position it as a leader in…
Last week was no doubt stressful to all subscribers who are or have been holders of Pagaya shares. As the stock fell on Thursday, I arranged a conference call with management. I came away both shaking my head at the share price reaction and being more convinced that the company did the right thing, regardless…
As discussed in the earlier Pagaya post, we took advantage of this morning’s Pagaya valuation implosion and added 800 shares at a price of $10.11. This purchase cost $8095 and brought our margin balance to $287,861. I realize that an 18% loss is painful. That said, I stand by the analysis I presented. I have…
Yesterday after the market closed Pagaya announced that it would be selling what is likely to be $143 million of convertible notes. In addition, the company announced an upsizing of its current term loan facility, while also announcing that it would be paying down at least $270 million of high cost debt-this debt had interest…
Summary Procore’s growth has been impacted by rising interest rates, but a falling rate environment could boost user sentiment and increase software spending on software in the construction space. Procore probably has the broadest platform in the construction industry and with new entries into payments, genAI and a push into the channel it has new…
Summary Elastic shares have dropped significantly due to sales execution issues and a revenue guidance cut, but the company is improving its operating margins and free cash flow. The company’s generative AI capabilities could drive future growth, but the exact impact remains uncertain, making the stock a speculative but potentially rewarding investment. Despite recent setbacks,…
It is the middle of the week and stocks, while no longer trading as though an economic catastrophe is impending, are still drifting without any sustained rally impulses. This is providing some opportunities to position a portfolio for an environment of falling rates. a) AppLovin In our commentary last week, we called out AppLovin as one…
Summary Pagaya’s valuation remains low both absolutely and relatively despite strong operational performance due to market sentiment and misconceptions about the fintech space in general, particularly subprime lending and its SPAC origins. The company has the potential to show significant growth in network volume in 2025, particularly in auto lending and POS, with new partnerships…
a) Zscaler: The business is growing but one metric is misleading investors As I write this Tuesday evening, Zscaler shares are down 15% to around $164. That puts the year to date loss of the shares to around 13%. I point that out simply because the question to consider is whether or not the company is…