Earnings Season on the Edge!

I always listen (or read the transcript) to the quarterly earnings calls for each of the companies I invest in.  I also review the quarterly earnings release on the day it is released?   The companies in the portfolio start releasing earnings this week on Thursday, November 4 with LSPD releasing before hours and DDOG and NET after hours.  The earnings dates for all of the companies in my portfolio are as follows:

			Portfolio %	Earnings Date
UPST			23.94%	11/9/21
DDOG			11.54%	11/4/21
NET			10.77%	11/4/21
CRWD			9.64%	12/1/21
LSPD			9.63%	11/4/21
SNOW			6.25%	12/1/21
ASAN			4.73%	12/2/21
AFRM			4.67%	11/10/21
DOCU			4.25%	12/2/21
MNDY			2.42%	11/10/21
AMPL			2.04%	11/11/21

If you choose to invest in individual companies (via their public stock), there is no better source of direct information than at minimum reading the company’s own quarterly earnings release (takes about 10 minutes to read unless you choose to also analyze their financials) and listening to their 60 minute call conference call in which you can hear the excitement and enthusiasm, or disappointment and dejection in the voices of the CEO and CFO as they describe the quarter and as analysts ask them questions.  

Waiting for the analysts and news outlets to summarize the company’s earnings and upgrade or downgrade the company can come weeks later and far too late after the smart money and big investors have entered or exited the stock; And it can therefore be detrimental to your investments as other investors and institutions buy or sell, driving the stock up or down.  There is simply no substitute for doing a little homework…homework that can take as little as 1 hour every three months.

I have great conviction in the companies I own and in their fundamentals and continue to hold them long term and to add to them as the company continues to perform, regardless of the stock price.  There is no argument that valuations in the SaaS sector are high on a historical basis, but companies that continue to grow at 50-100% per year (or more…UPST, LSPD, SNOW) are cutting those valuations in half every 1-2 years.  Eventually (and that can sometimes take a year or two) great company performance will prevail and their stock prices will follow their fundamentals, just as the tail of the dog must eventually follow the ddog! 😉

You can access the earnings calls and listen to them live and see their earnings release very easily by googling the stock symbol with the words “investor relations following it.  For example:  “DDOG Investor Relations” and following the google search result to their investor relations website where you can get a plethora of information and simply click on the link to listen to their quarterly call.  I hope you will consider this priceless tip for learning about your investment and make a point to listen to a call or two this quarter.  You won’t regret it when your portfolio performance surges.

Cheers!  

-Poleeko