This has been a gut wrenching time for holders-including this writer-for holders of high growth IT shares. Investing is supposed to be somewhat logical: the results of the past week or so have defied logic. Ticker Target portfolios had some significant winners but overall most high growth IT shares have fallen victim to the risk-off…
SummarySmartsheet has become a GARP story as its growth has decelerated and valuations have compressed. The company’s Q2 earnings release should have alleviated investor concerns, with reaffirmed billings growth and strong profitability. Smartsheet is gaining market share in the workflow management space with a solution that is highly scalable and one of the most feature…
Summary Pure Storage’s FlashBlade/E product has the potential to replace spinning disc storage with its cost and performance advantages, driving significant growth for the company.The company’s partnership with NVIDIA and its AI-ready infrastructure could also contribute to growth in the coming years.Pure Storage’s valuation remains attractive, with a projected 3-year CAGR in the low 20%…
Workday’s position as a recession impends Workday is not the most obvious pick for investors concerned about the impending recession. After all, this is a company whose raison d’etre is based on providing solutions for HR and for Finance of enterprises of all sizes. It is obvious that with hiring slowing, and with financial apps…
Atlassian-its attractively valued for the first time in years Why write an article about the shares of Atlassian (TEAM) now? I last wrote an article on the company that was published on SA about 2 years ago. The shares are actually higher now, than they were back then, but in the interim, they appreciated substantially before falling…
The first thing to advise subscribers is to maintain some semblance of calm. That can be very difficult to do when headlines are all grim, and ones portfolio has imploded as has been the case for most growth investors. The obvious reaction of many is to take losses and exit the market. And truth be…
Shift4 in the context of rerating and valuation implosion The stock market is an efficient engine for valuing assets. That is one of the first things taught to students of investment management. What is less frequently taught is the role of sentiment, and algorithmic trading in valuation. Currently, the most popular sentiment gauge remains at…
Summary monday shares saw their valuation shredded in the wake of what was construed as disappointing guidance. The company’s guidance is typical of that of many companies these days: revenue growth is less than might be reasonably anticipated, while opex expense growth is elevated. monday is one of the leaders in the workflow management space.…
Last week was one of lots of gyrations, and as the result of a very substantial intraday reversal on Friday, the indices and our portfolios finished with small gains for the week. I am not about to call the bottom, yet. The market in general, and particularly the market in high-growth IT shares was oversold,…
I have been asked by several subscribers what I am doing in this market implosion. Simply put-I don’t sell into panics. I didn’t sell back at the start of the pandemic, although that was pretty uncomfortable. I haven’t sold during other sector rotations. I don’t believe I am being stubborn. I simply try to invest…