Well… AYX has now increased more than 50% in the last 7 trading days since I posted my additional purchase at $81 on April 3.
While personally I believe this stock has a lot of room to run higher still (it was up at $158 back in February), it has now ballooned up to a 30%+ portion of my portfolio, so I am selling a little of my recent purchase and trimming it back to 25% again (to be clear, it is still by far my largest position and a good problem to have!). The fact this is still my largest position and I’ve not sold any of my original position during this COVID-19 crisis should make clear my conviction in this company.
AYX will have their earnings call on May 6, at which time I will reassess how to move forward; at this time and based on the phenomenal growth, strength, profitability and traction exemplified in their last earnings release (written about extensively in prior texts) I have no reason to believe they are not continuing to fire on all cylinders.
Indeed, in the midst of this pandemic, I feel our SaaS companies are actually benefitting as everyone and every company (customer) is forced (some kicking and screaming) to adapt and adopt the digital revolution that was already starting to happen since I started this blog about 20 months ago.
As of today the portfolio as a whole is bucking the market trend and up 18% overall YTD. One stock, my second largest holding OKTA, is sitting at 52 week and all time highs today!! If that does not exemplify the strength of these companies and the fact that picking well-run, fast growing, solid companies with strong balance sheets and great management teams can and does outperform the overall market…well, I don’t know what else would.
Cheers and stay healthy, my friends!!
Workout to stay healthy for the day!! The 2″ battle rope!
