We have made some changes in the Income/Stability portfolio this morning. Shares of Oracle have fallen yet again-this time due to a story in the FT relating to the company’s planned data center in Michigan. Oracle, as has been detailed recently, does not own the land and the buildings of its data centers. It leases those from…
I realize that most subscribers do not look at the Income/Stability portfolio but we do monitor it and make changes in it from time to time. Pegasystems was up by 34% this morning. Its spike is related to an earnings report that is a bit misjudged. The company booked a one time subscription transaction that…
We made some significant changes in our income/stability portfolio. We eliminated our entire position in shares of Dassault Systemie. We felt that there were more interesting companies that are paying dividends in which to invest. While slow growth is not necessarily something that motivates a sale, we obviously look to find companies with greater growth.…
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.…