My prediction above is playing out nicely and I hope some of you were able to pick up some of those basement bargains. The last three days all three of those stocks have been up nicely and have started what I hope to be a significant pre-earnings run up, if beta (market) factors will only cooperate!
Dates are as follows:
ZM – 11/30
CRWD – 12/2
DOCU/OKTA – 12/3
Almost no one will argue against Zoom right now hitting a home run this quarter when they announce earnings. The question is only whether The market will feel that they are overvalued when they do…and whether the ball will hit the fence, the bleachers or land in the water completely out of the park! As stated above, I added to these three companies during the recent dip and will likely lighten them if I see a big run up into earnings. I will however keep my core position, of course; I just had great conviction that this was an opportunity to add or get into these companies for a relative bargain going into these earnings. ZM stock traded as high as $580 recently… so even right now today they are a relative bargain at $440. I’m not saying they are not extremely highly valued right now…Nose bleed by some accounts. But keep in mind those valuations get cut into thirds or fourths every time they come out with 300 or 400% revenue growth quarter over quarter.
All that said, Crowdstrike remains my highest conviction company right now long term. They are hitting on all cylinders, trading very close to all-time highs, and will benefit from the tailwinds of Covids transition to digital regardless of whether the vaccine takes 3 weeks or 3 years. Have a great weekend, everyone and stay safe and healthy. -V
User comment: Thank you! Can you send a recent distribution of your shares?
Note: My options positions that make up 6.6% of my portfolio are only in the top 4 companies. Fully weighted they have the equivalent impact of ne being only 3-4 % cash due to their leverage. This is a result of adding many of these options positions on the recent dip in prices. I don’t discuss options on this text message as they are complex, extremely technical and change frequently. Cheers!
User comment: Thank you!
