As mentioned earlier this week, we wanted to finish selling the RPD position. Today the shares advanced a bit and we finished disposing of the position. We are trying to direct some of the investments in the portfolio into names that we believe will reap outsize benefits from the end of the pandemic. Shift4 has…
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…
The last few trading sessions have seen a rather significant reversal of investor preferences. Risk-off is ruling investment sentiment and has pulled down many high-growth IT names by as much as 20% in a few days. Losses, as is typical in a panic, have been fairly indiscriminate although the names with the highest EV/S valuation…
Trying to make sense of Datadog’s valuation Making sense of hyper-growth valuations is a fraught undertaking. The problems are manifold in that no one has any real idea as to when the hyper growth phase of a story ends. That would be true even if there were no pandemic, and work-from-home orders. But in this…
As of the opening this morning, we are making a change in our portfolio. We are selling 35 shares of TTD at a price of $307. This sale nets us $10,750. We are buying a similar amount of Rapid 7. Our entry price is $46.97, and we have bought 228 shares that cost $20,731. We…
Summary Rapid 7 is a leading cyber-security company with offerings historically addressing the SMB space. The company has a surprisingly modest valuation given its growth and opportunity set. It is ranked as a leader in the SIEM space but has more than a few other solutions appealing to both its historic SMB base and to…
First of all, neither I nor anyone else in this country, wants to see a wider conflict with Iran. Even our President and Secretary of State have said they do not seek regime change. So far as I can determine, there is no plan or purpose in sending an army into Iran or in launching…
Rapid7 reported the results of its Sept ending quarter earlier this afternoon. The results for the quarter were impressive relative to expectation with a non-GAAP operating loss of $.13 compared to a prior forecast for a $.20/share loss. Revenues also showed a modest beat, typical of the performance of subscription based software vendors, and were…