Summary Enterprise software turned in a spectacular performance in 2020. My tea leaves suggest that the space will continue to outperform broad indices in 2021. I think a reasonable portfolio should focus on those companies who experienced demand headwinds in all or part of last year. I have taken a portfolio approach to making recommendations.…
The last few trading sessions have seen a rather significant reversal of investor preferences. Risk-off is ruling investment sentiment and has pulled down many high-growth IT names by as much as 20% in a few days. Losses, as is typical in a panic, have been fairly indiscriminate although the names with the highest EV/S valuation…
The flood of earnings for the spring quarter is now underway and will soon reach spate. The first results are coming in at exceptionally strong levels, regardless of how the economy may currently be tracking. Some of that strength relates to the uncertain, and modest guidance that was generally provided last spring before the economy…
Summary Dynatrace recently reported strong results for Q1 operations. Despite the impact of the virus on the economy it was able to show growth reacceleration-a rare achievement indeed for this time. The company, in its presentation, projected lots of tailwinds and a deepening competitive moat based on some specific bits of functionality. Despite all of…
As foreshadowed in a previous post, we are making a change in our high growth portfolio. We are selling Avalara and buying Dynatrace. We had 230 shares of Avalara which we sold on close this afternoon at $97.62/share. That raised $22,450. We bought 700 shares of Dynatrace at $32/share which cost $22,400. We added the…
Summary Dynatrace is another high-growth entry in the observability sweepstakes. The company is achieving accelerating growth with the most recent quarter showing ARR percentage growth accelerating to 44%. The company is quite profitable with free cash flow margin of more than 30%. The company essentially was reborn, in terms of technology about 18 months ago,…