User question: How are you feeling about square?
User question: And while we’re at it: Beyond Meat! And Victor, would you be so kind and send me your holdings in %? I’d like to update mine.
User question: Thoughts on SMAR? It took a beating yesterday and did not recover much today. I plan to hold through earnings, but was surprised to see no bounce after Monday sale off.
Victor: Sorry all…long day and little phone access. I like SQ. Solid company, great growth, loyal and very sticky customers, plenty of new traction and services….I will maintain my 5% holding. Avoiding Beyond Meat…have not analyzed but don’t feel they can execute to grow into the massive valuation. No recurring revenue. Still unproven model. But I could be wrong and simply don’t know.
MongoDB, Inc. Announces First Quarter Fiscal 2020 Financial Results $MDB
https://seekingalpha.com/pr/17536000
Elastic N.V. Reports Strong Fourth Quarter and Fiscal 2019 Financial Results $ESTC
https://seekingalpha.com/pr/17536042
Smartsheet Inc. (SMAR) CEO Mark Mader on Q1 2020 Results – Earnings Call Transcript $SMAR
https://seekingalpha.com/article/4268597
Square for Restaurants adds Postmates, DoorDash, Chowly integration
https://seekingalpha.com/news/3469613
As I write this, MDB has gone from down 10% this morning at the open to even for the day. Likely was a lot of traders selling the news. I listened to the earnings call last night late and re-read it this morning in part. For the life of me, I don’t see anything at all of concern with this company. It’s a bit hard to do the comparison because they have switched from ASC 605 to ASC 606 (accounting standard legal change) but once you get past that, it’s clear they are firing on all cylinders and their revenue growth is blistering with 80% plus growth quarter over quarter and over 300% growth in their main subscription product called Atlas, which now makes up 35% of their revenue and increasing. I wish I had picked up some more this morning at the open! Snooze you lose, But it is already my third largest holding and I will stand firm. Cheers!
Also worth noting that smartsheets is up 10% right now! Have to like that! All three earnings call links are above. Enjoy.😉
ZOOM (ZM) A few weeks ago I was able to do a preliminary review of the S-1 of ZM, who recently went public. I was not able to buy pre-IPO and they went public at an extremely high EV/S valuation over 60! I was very skeptical, but as I reviewed their 100% + revenue growth, ARR and quickly approaching profitability, I understood a little better why. Last week I picked up a very small 1.5-2% position in ZM to “try it out” and force me to follow them. After hours today, the company posted incredible results, including 103% quarter over quarter q/q revenue growth (yet again!), a significant earnings beat over what analysts expected, and GAAP profitability for the first time. The company is still VERY highly valued…the highest EV/S in my entire portfolio, but it now gets adjusted down to around 40 and they are certainly the fastest growing company out of my 10 with their 103% revenue growth. I will keep my position on the small side, but very happy with their results after hours. The company stock is trading up 10% after hours, so that bodes well for it opening higher tomorrow morning.
Zoom, Zoom. Now aren’t you glad we didn’t sell our company’s stocks in a panic on Friday or Monday when Armageddon seemed imminent and they were down a few percentage. I don’t try to time the market, I just try to identify and buy solid, hyper growth companies that have lots of ARR and are enabling the digital revolution with a a moat around their technology. The past three days in a row the portfolio has increased as a whole almost 15% and several stocks have screamed to new all time highs. The portfolio is closing in on 70% returns YTD and up another 5% just today as I write this text. And My smallest holding zoomed up 21% today!! Zoom, Zoom!!
Hard to believe I wrote the text about MDB above just yesterday at noon…now of course I’m kicking myself for not taking my own advice and just adding a little on their phenomenal earnings…it is now up 15% today! (After being down 10% at the open of the market yesterday??) That is MONGO!!
