This morning Axon announced that it was selling $1 billion of 0% convertibles. The conversion price has not been announced. My guess is that it will be at a 50% premium. There is lots of demand for convertible offerings of high growth technology vendors and indeed there are funds who only invest in such converts. …
A somber day for me-I lost one of my favorite clients this day-a mother of 3 small children. I still have a hard time understanding a world that lets that happen. The high growth portfolio made some portfolio changes this morning at the opening. A lot of times I read headlines that are either not…
We made further portfolio changes today in the high growth portfolio. We sold an additional 150 shares of Snowflake, taking that holding to 100 shares with a weight of sold the 150 shares at 1.02%. We sold the shares at $314.59. This sale raised $47,180. We replaced that position with a few purchases. The portfolio acquired…
Shares of Snowflake continued to spike and we have sold half of the remaining position (250 shares) at $314.01. The sale raised approximately $78,490. The remaining Snowflake position in the high growth portfolio is 250 shares and that has a weight of 2.79% in the high growth portfolio. If the shares continue to spike, we…
This morning DigitalOcean announced that it was spending $500 million to retire its current convertible debt outstanding. This is to be funded by simultaneous offerings of shares. The net of these transactions will leave the implied outstanding share count alone. The press release called out that this transaction might result in some share price volatility and that…
There was positive news regarding two companies we hold in the high growth portfolio: Digital Ocean and Figma. Neither company’s share price has responded hugely to positive developments leaving them relatively attractive. a) Digital Ocean Digital Ocean pre-announced a substantial upside for its June quarter and essentially raised future guidance. The headline is that the company…
It is a busy week for earnings and in order to keep up I try to work on some comments about companies in our portfolios as they report results. a) DigitalOcean DigitalOcean shares rose by more than 40% on Tuesday in the wake of reporting a very strong quarter-or better said, a strong quarter and guidance…
Shares of Nebius have spiked significantly this week. The spike carried the shares to a portfolio weight that was simply too high for comfort. We sold 500 shares of Nebius in the high growth portfolio at $148.99 and that raised $74,495. We now have a 2700 share position in Nebius which is a weight of 22.7% in…
This has been yet another week of pain and disappointment. Despite seeing some strong performance because of upside earnings from Braze, Navan and Unity, the high growth portfolio has depreciated. Stocks are being sold more or less independent of valuation or business outlook. Sentiment seems to be stuck in negative. The war, the SaaSpocalypse theory, interest…
blackdovfx/iStock via Getty Images Digital Ocean: A somewhat unique strategy and a somewhat unique AI infrastructure investment Depending on definition, it’s been about 2.5 years since AI first emerged as the investment theme of the decade and perhaps the century. Since then companies of various stripes have emerged in the space with incredible valuations. The two leading…