How should growth investors position their portfolios to deal with the impending recession Whether the NBER or the president chooses to acknowledge the reality, a recession is either here or shortly impending. It is not, perhaps, a typical recession, but then there is really no such thing as a typical, i.e. inventory based recession any…
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…
Most of the earnings from IT companies with quarters ending April 30th have been reported at this point. Overall, the quarters were not as bad as feared and quite a few companies indicated that business, after being a bit below their plans in April, had seen a snapback in May. Other companies seem not to have…
A bit of a mixed metaphor here-lumps of coal aren’t supposed to come until Christmas. But it feels like Christmas this wintry day in early December, so I decided to use the metaphor. Once again, the strong demand environment is fighting against valuation concerns and overall angst about inflation, interest rates and now the Omnicom…
After several days of risk-on bias, the market has reversed to some degree, today, Thursday, August 26, 2021. As I write this, the Nasdaq Index has declined by about 0.64%. That is about the same as the change in the S&P. The Cloud and Software indices are performing a bit better and were both down…
Pure Pure is scheduled to report the results of its fiscal Q2 on Wednesday, 8/25. I rarely try to handicap quarterly earnings-to do so requires information I simply do not possess. We have about a 4.5% weighting in the name; we started the position more than 2 years ago, and it has appreciated just 20%…
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…
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 are enlarging our AYX position from about 5% to 7.5%; we have bought 150 shares at a price of $111.49. I get questions sometimes about the price we buy and sell in the model portfolio. We actually have a model portfolio that we manage on behalf of a specific (unidentified) client. Very often we…