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…
The market spent a totally schizoid week. It initially fell, with what are thought to be high-risk stocks taking the brunt of the selling. And then it turned. I was asked recently by a subscriber to compare this overall risk-off period to the crashes in 2001 and 2008. I was around for both of them.…
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…
Summary Pega reported a particularly strong Q2 last week. Growth in the quarter was reported at 43% and much of the upside dropped to earnings and cash flow. The company is seeing an acceleration in its long-term growth to the low 20% range. The company offers users technologies encompassing low-code, AI and robotic process automation…
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.…
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…
Prosperity in the time of the Virus Although the impact of the virus on the economy is pervasive, the fact is that some companies, depending on their product set, and sales execution have shown more resilience than others. These are not “virus” stocks. There is no positive correlation between demand for their products and the…
This week and next week are a seasonal peak in earnings reports for the quarter ending 3/31. I don’t expect to write on every single name in the next few days, but will try to concentrate on those that are interesting or are in one of our two model portfolios. The most interesting story so…