RHT

It was announced earlier today that IBM was acquiring Red Hat for $190/share, a premium of no less than 62% from Friday’s close. This is probably the most significant transaction of 2018 in the enterprise IT space.  To say that the premium is extraordinary is an understatement-62% premium’s, in general, are extraordinary but given the…

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Summary Last week, Red Hat reported the results of its fiscal Q2. The results and the guidance, particularly on the top-line proved to be disappointed. The shares fell another 10% and they are down 20% from their recent high. The company’s bookings performance was better than its revenue performance. The issues that lead to poor…

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Usually, at this time, subscribers receive a weekly portfolio commentary. But unusual times call for unusual posts. Rather than reviewing how the market and stocks moved last weeks, I thought I would provide you with an overview of my perspective on valuing tech stocks in the wake of last week’s tumble. Obviously, Friday was a difficult day…

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Avalara Avalara, a recent IPO whose shares appreciated by 46% its first day of trading have appreciated a further 13% so far today. The share price appreciation was based on a decision by the Supreme Court that lets states collect sales tax from online retailers. Avalara, for those unfamiliar with the name is a company…

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Red Hat’s Quarter

Perhaps a bit less than meets the eye. Red Hat reported the results of its fiscal Q4 earlier this week. The quarter’s headline results were quite impressive and were a continuation of the company’s positive trends. We had recently removed the shares from our high-growth portfolio, basically to make room for taking a position in…

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Spring Cleaning

We are making two changes to the high growth portfolio this day. We are selling Red Hat shares at today’s opening price. This will raise about $22,000 in cash and will increase the cash balance in the portfolio to about $30,000. We are also selling 11% of all of the other portfolio holdings at the…

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After a more mixed quarter reported in June, RHT reported a clean beat with the company narrowly beating on EPS by $.02 and on revenue by $7 mil. (1.2%). Operating margins some growth year on year which has been a principle concern among analysts. The company is forecasting EPS for this current quarter to be…

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