ZS

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…

To access this post, you must subscribe.

Read More

As many subscribers will be aware, some of the cyber security names have appreciated very sharply this week. We currently have about 20% of our portfolio in holdings of CRWD and ZS. This week’s spike is most likely a function of investor interest in the space due to the Russian hack that has penetrated several…

To access this post, you must subscribe.

Read More

Buying the dip

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…

To access this post, you must subscribe.

Read More

The last 4 days of market activity have been more mixed than the activity of the prior  several weeks. Issues that might not have exercised investors in the past several weeks such as the contretemps regarding the HK security legislation, appeared to move the market. That said, there was still plenty of room for the…

To access this post, you must subscribe.

Read More

I prefer to take a little bit of time before rushing into print with some kind of analysis of a quarterly earnings report. I like to read transcripts of conference calls, as well as listen to the calls, as it is almost inevitable that I miss nuances or data nuggets or both. But it takes…

To access this post, you must subscribe.

Read More

Tuesday is often condemned for its mediocrity. While every couple of years it provides the excitement of electoral drama, much of the time, at least in popular culture, it is derided for lacking the drama of the start of the week, or even the sense of accomplishment of “hump” Wednesday. Today is one of the…

To access this post, you must subscribe.

Read More

On Tuesday, ZS, along with Salesforce and Workday reported the results of their quarters that ended October 31st. Given that ZS is part of our high-growth portfolio and is presumably owned by a significant number of subscribers, I am going to review the earnings release and guidance first before moving on to other topics. A…

To access this post, you must subscribe.

Read More

Some General Thoughts Zscaler remains a controversial investment. Although it has bounced a little since making a recent low on September 13, it remains 40% below its recent high. Perhaps the recent high was a product of fevered imaginations and expectations. It certainly was never consistent with EV/S and cash flow valuation-but then perhaps trying…

To access this post, you must subscribe.

Read More

Zscaler/Crowdstrike-some thoughts about their announcement Yesterday, as part of an investor event, ZS and Crowdstrike announced what could be an interesting integration of the two solutions. While some of what I write here might be considered an over-simplification, the two companies offer complementary solutions to different parts of the cyber-security problem. The core of the…

To access this post, you must subscribe.

Read More

Summary ZS reported its fiscal Q4 results earlier this week. The guidance provided was considered disappointing and the shares-already down because of concerns about valuation and competition-declined an additional 20%. ZS, now down about 43% from its high, has reached a valuation level (EV/S) just slightly above average for its growth cohort. The company specifically…

To access this post, you must subscribe.

Read More
{"cart_token":"","hash":"","cart_data":""}