I have received a number of requests from subscribers to comment on what some perceive as a valuation bubble in high-growth tech stocks. It seems a good occasion to reflect on Q1 and whether those results have created a bubble. Just to be clear, from time to time, groups of stocks are going to perform…
Summary Zscaler reported another quarter of outstanding operational performance last week. Growth actually accelerated in terms of revenues and bookings, with bookings growth exceeding 70%. The company reported strong operating leverage-non-GAAP margins were about 15% and the operating cash flow margin was above 20%,. The company continues to achieve extraordinary success capturing large new customers…
Cognizant (CTSH) We are buying 200 shares of Cognizant (CTSH) in our income/stability portfolio, using up our cash balance, and a little more. We are buying the shares at a price of $64.63, the closing price on Monday, which will take $12,926. We had sold Cognizant shares back in August at $75/share in the wake…
I imagine that all of our subscribers are aware that the Fed chose to raise rates this afternoon. That decision had been anticipated by most market participants. The Fed statement, however, was considered to be more aggressive with regards to the likelihood of future rate hikes than might have been hoped. The Fed also continued…
Portfolio Changes We are making a couple of changes in the portfolios, effective at close of market today, December 18,, 2018. In our high growth portfolio we are selling our position of 30 shares in SHOP at today’s closing price of $134.39. That sale will yield cash proceeds of about $4000. We have long advised…
Before I embark on a couple of rather brief commentaries on two names that I have recommended to subscribers over the past few months, pardon me if I take a few lines to suggest some thoughts-about Tuesday’s bloodletting, today’s reversal and the yawing disconnect between reality and the share price performance of tech shares. Tech…
I will try to make this as short as possible and long as necessary. Some subscribers like my efforts in terms of diction; all subscribers are going to like it better if I can produce profitable picks. I think the recent crash is epochal in nature. I have seen my share of crashes such as…
Nutanix This afternoon, after the close, Nutanix announced-again-that it had closed the largest deal in its history with a DoD customer for more than $20 million. The deal was one of 46 transactions that of greater than $1 million that closed during the company’s Q4. Nutanix, during the course of the call, indicated that it…
The lock-up of Zscaler’s expiration is scheduled for 9/24- 2 weeks from tomorrow. It was delayed because of the recent earnings release. I think most people involved with Zscaler shares are aware of the expiration. Obviously, the expiration is going to release a fair amount of shares for sale and it is certainly true lock-up…
Wednesday was an afternoon filled with tech earnings reports. There were far too many to cover with any degree of rigor in a single post. Just to note-all of the earnings beat, most of the guidance was a raise, and earnings improvements were part of the process. Earnings of note that I follow that fell…