This afternoon we sold our position in Shift4. We had a holding of 150 shares that we had acquired at the end of last year at a price of $71.49. The shares have spiked almost 20% today-primarily based on a recommendation by B of A-which contained a double upgrade. While we do not like to…
Summary Twilio is one of the leading vendors in the CPaaS space. Its results for the January quarter were nothing other than spectacular. It also raised guidance for this current quarter materially. The company’s scope of product offerings in its pace has helped it build a formidable competitive moat. CPaaS remains a cornerstone of digital…
I have written that most companies in the enterprise IT space are seeing exceptionally strong demand as business users and consumers embrace digital transformation technology. We try to ensure that our portfolio is focused on the names in the space that support the digital transformation paradigm. That has worked out for the most part, most…
Summary Fastly reported its year end results and provided forward guidance on 2/17/2021. The quarterly results were a modest beat; the guidance was considered disappointing. The company is forecasting 32% growth for the year which includes about 400 basis points from the acquisition of Signal Sciences. The forecast includes headwinds from the revenue decline of…
Several subscribers have asked me to comment about the share price implosion in the IT space this past week and what names can be bought to take advantage of this panic. I do think that this is a panic that presents some opportunities for subscribers with spare cash. The concept of this panicis is that…
Portfolio Changes: We are making several portfolio changes this morning. Most of the changes are in the high-growth portfolio, while there is one change in the income/stability portfolio. In a general sense, we are trimming some winners and adding more cyclical names that have less lofty valuations. We have been contemplating this move for a…
Summary Wix is set to report earnings on Wednesday, Feb. 17, 2021. We expect the company to report incrementally stronger ewcwnuw growth, with a likely improvement in the company’s operating cash flow margin. Wix continues to pivot its technology to address the ecommerce space. The company now derives more than 20% of its revenues from…
When you go to the grocery store, you are confronted with a choice of buying ripe (yellow) bananas which you can eat immediately, or buying green bananas, which will take some time to ripen. It can be a conundrum. You may not be able to eat all of the ripe bananas before they go bad,…
Summary SaaS companies turned it a stunning share price performance in 2020. The CLOU index which I consider the best way of measuring share price performance rose by 80% during the course of 2020. More than a few SaaS names rose by 2X-4X. Concerns exist that SaaS names will not reprise their performance in 2021.…
We made a portfolio change in the Income/Stability portfolio. We sold our position in Ubiquity at the opening price of $319.75. The sale netted $75,130, The sale in no way reflects any change in the outlook for the company. It reflects, rather, the recent spike which saw the shares appreciate by 31% in two weeks.…