SMAR

Summary The thesis here is that high growth names are able to produce sizeable returns despite the headwinds of inflation and higher interest rates. The thesis is supported by notable valuation compression in many names that has proceeded unremarked through much of 2021. In addition, most high growth companies are expanding their TAMS by aggressive…

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I am sure that subscribers will recognize that the last few days have seen a rather substantial pull-back in high growth tech names. Some losses have been greater than others. None of the valuation contraction has been based on some particular changes in the outlook for growth names, or their overall operational performance. We will…

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Tuesday afternoon, several significant software companies reported their results. I will focus on Smartsheet and Crowdstrike since they are holdings in our high growth portfolio; Coupa (COUP) also reported results which were a significant beat compared to prior expectations. It should be apparent that while the violent sector rotation of the past few weeks has…

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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.…

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As noted yesterday, we sold our position in Slack in the wake of its purchase by Sales force. We added to our holding of Alteryx but still had some funds available to start a new position. We considered a number of names but ultimately decided to add Smartsheet to our portfolio. We have written about…

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Summary Earlier this month, SMAR announced another strong quarter and wound up raising guidance. The company has maintained growth above 50% since it became a public company in April 2018. The shares have fallen about about 23% from the all-time high set at the end of July. The company is not profitable-its is burdened by…

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Summary Smartsheets is another hyper-growth company with a hyper-valuation to match. It is a company whose products facilitate workgroup collaboration and automated workflows. Many people consider it to be an updated/upgraded Excel. It really offers specific capabilities in terms of ease of use and collaboration that are not available in Excel. The company has been…

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