As I grab a workout on the bike in one of the financial capitals of the world and the former British colony of Hong Kong, it’s nice to be up 1.5% on a day when the markets are pausing their upward march and down 0.5%. We’ve had several upgrades by analysts over the past week or two and today it was announced that Google was partnering with Mongo DB and Elastic. MDB is my second largest holding of 14% of my portfolio and is currently up 140% since purchasing it in July (9 months ago) ESTC is only 5% of the portfolio and is only up 24% from my first purchase in December. I like both and will continue to hold them.
I recently picked up a new stock to try it out called Smartsheets. The numbers were just too impressive and my initial reticence around their product has now taken a back seat to the impressive growth and metrics. I initiated a 3% position. They have SaaS leading margins, incredible accelerating DRR now at 134%, their service revenue’s margin is an impressive 30+%. SMAR should stay in the 50% + revenue growth, if they stay near the 50% range SMAR should be a very good investment even assuming a gradual decline in EV/S from 22 to 20 then 18 over the next two years. I will track it for the next weeks and determine whether to leg into another third of a position. Greetings from Hong Kong!
