Summary The best strategy to invest in the AI revolution is to focus on the pick and shovel vendors in the space. These companies serve as toll takers on the road to the deployment of AI based applications. AI needs lots of storage and thus we recommend shares of Pure. AI needs unified storage/compute and…
Assessing the outlook for Pure Storage in a recessionary environment Why look at Pure Storage (PSTG) shares now? There are an abundance of investment opportunities within the high growth IT environment. Some readers and commentators, I suppose, will say that this is a function of the relative valuation of a bubble valuation, and the valuation…
After a record setting November for many equity indices, December has opened with a bit of a pause-particularly so for high-multiple, high growth IT names. The dreaded sector rotation came and went in a couple of weeks, leading to a noticeable rally. I would be surprised if December turned out to be quite so ebullient…
March will probably rank as the worst month ever for equity investors, but the last week or so has seen a modest recovery. There appears to be some better news from the war against the Covid-19 virus. The Boston Globe is carrying a story today that new cases in Mass. will peak on about April…
We have reached the tail end of earnings season although there are a couple of interesting releases scheduled before the holiday. Splunk, and Pure is to report on 11/21 and Nutanix is to report on 11/25 along with Palo Alto. Splunk shares were downgraded by a small research boutique, Cleveland Research. The cause of the…
My Conviction on Pure Sometimes subscribers ask me about ranking my conviction concerning recommendations. To a certain extent, the request is somewhat akin to trying to rank one’s children. Still, not all of my recommendations have the same level of risks and rewards. I have written on several occasions regarding Pure Storage as a recommendation.…
Yesterday was a painful day to hold equities, although the percentage losses were nowhere near records. A couple of subscribers have asked me to evaluate the macro headwinds buffeting valuation and the read-through from the results of both Cisco and NetApp on some of our portfolio names. I do not purport to be an economic…
NetApp’s results-pretty dismal on balance NetApp reported the results of its fiscal Q4 Wednesday evening. The results were a miss-I might have thought the miss was well telegraphed with numerous brokerages out with expectations for results below guidance. Indeed the shares had fallen by 13% since the middle of April until today-presumably on concern that…
As mentioned, at the close of business last Friday, we made a change in the Income/Stability portfolio. We sold the remaining shares of NetApp at a price of $58.70. This netted us $11,740. We replaced the NTAP position with a buy of 250 shares of Pegasystems at a price of $47.48. The buy cost us…
We have followed NetApp as a company for almost two decades now since it grew to a level of maturity back in the early days of the millennium at the start of the real tech bubble. We have been through out share of ups and downs with the shares, but in recent years, in the…