It can be difficult to write about earnings and forecasts when investors seem fixated on risks and geopolitical fears. While I can offer some kind of informed opinion on inflation and interest rates and economic trends, my crystal ball goes cloudy when I try to prognosticate about the future actions of a risk tolerant dictator. …
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…
The tide of earnings is at flood, with results of several companies coming daily. I obviously can’t review all of the earnings in which subscribers have interest. I will, over time, review the results of the companies in the high-growth portfolio and will also review names that I have recommended but which are not currently…
High Growth tech names have depreciated sharply since the start of the sector rotation in mid-February. Most names have lost more than 20% as investors have fled the space-supposedly fearful of rising interest rates brought on by expectations of higher inflation. The flip side of this, is that companies in the space have seen a…
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…
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…
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.…
We made 2 portfolio changes this afternoon. We sold 50% of our position in Rapid 7. The sale does not reflect any foreshadowing of deteriorating growth. We think the space is strong and that Rapid 7 is gaining share in the SIEM market with competitive wins against Splunk. But the shares have about doubled in…
As many subscribers will be aware, some of the cyber security names have appreciated very sharply this week. We currently have about 20% of our portfolio in holdings of CRWD and ZS. This week’s spike is most likely a function of investor interest in the space due to the Russian hack that has penetrated several…
As many subscribers will have read, Pluralsight announced its acquisition by Vista Equity Partners for $20.26/share in an all-cash transaction. We think that Vista got a steal-but the press release suggests the company had shopped itself for some time period and this was the best bid. I have no reason to doubt the language of…