High growth equities were under some pressure in trading Thursday morning. Overall, the high growth portfolio has fallen about 3%. There is still tariff angst as the president has sent aggressive letters to some trade partners such as Brazil threatening punitive tariffs because of political issues. Further, the QQQs and other indices made all-time highs…
AS we had discussed in this week’s commentary, we believed that the recent appreciation of IT stocks had taken some of the positions in the portfolio to valuations that were a bit stressed. Today, that opinion was seconded by the analyst team at Raymond James with regards to Nutanix. That precipitated our sale of a…
Atlassian (TEAM) burst on the investment scene a few years ago with a seemingly unstoppable collaboration offering, Jira. Through a series of both internal developments and acquisitions it assembled a portfolio of collaboration tools for developers. It had a somewhat unusual business model with far lower than average sales and marketing expense ratios but elevated product development…
As mentioned in the commentary, the announcement of substantial tariff increases has led us to take some action with regards to the high growth portfolio. We felt compelled to sell Global-e. Global-e’s business is based on direct to consumer international e-commerce. Essentially all of its revenues are based on either shipping or selling or a combination of…
Summary Smartsheet’s share price decline has brought its EV/S ratio to around 4.5X, with a projected free cash flow margin of around 12% over the next 12 months, making it an attractive investment opportunity.The company is a leader in the workflow management space, with strong growth in profitability and free cash generation, and is set…
Salesforce-A recommendation for a perilous market The title of this article comes from a quote by Ray Bradbury, a well known author, whose most famous work was “Fahrenheit 451.” I thought it particularly appropriate after the months of share price bloodletting. I have not written about Salesforce (CRM) on the SA platform for about 4 years now. I…
Many of the larger tech companies have now reported their earnings. If there are two consistent threads they are that overall, earnings have been a bit better than some have feared and that while some of the consumer focused tech vendors have encountered a variety of headwinds, for the most part that hasn’t been the…
Summary Shares of High-Growth software companies have led the market down so far in 2022. The decline in valuations and absolute share prices has been at rates that rival anything in the recent past. This decline has occurred against a background of strong and growing demand in the Information Technology (IT) space. Ironically, software demand…
Tuesday evening and Wednesday morning brought several announcements from software companies providing preliminary results for the quarter that ended on March 31st . The results for all of the companies listed above were significant beats. The theme is that the software industry is experiencing boom times engendered both by the wide scale acceptance of applications that…
Earlier today, we made another change in our high-growth portfolio. We sold about 50% of our position in Atlassian-132 shares at $240.09. This sale raised about $31,685. Atlassian is a great company with a long runway of growth. But the shares have gained 25% in the last month. Part of that gain probably relates to…