if VEEV is only for life science it cannot beat salesforce, havent researched at all on VEEV, i will look it up. I would discount WDAY,VEEV as 10X stocks, TAM/SAM - total/serviceable addressable market isnt big enough.
Can WDAY eat up more and more of ERP and down the road also offer CRM? Or is it too late for them? It’s fairly small at 20B. Salesforce is much bigger at 64B.
SAP and Oracle are dinosaurs. I think the smaller players in Workday and Salesforce can be much more nimble. Theoretically ERP and CRM should belong in the same system. You make a sale and then you need to let production know about it. It’s sub-optimal to have two separate software systems.
I dont see how wday can do CRM better than salesforce. The way I see IT enterprise software going is to disparate software systems and eventually the landscape becomes un manageable and it will come back to 1 system in 10-15 years. Netsuite is finance cloud ERP leader. So instead of SAP and oracle all in 1, now we have multiple. NOW is another cloud provider to watch for, they are the cloud leader for ticketing software and call centers.
well a lot of big companies have multiple systems (upto 100 ERP instances due to M&As and so forth) Apple atleast has 5 ERP instances(1 for itunes, 1 for iphones, etc) it doesnt matter if they are in multiple systems, they will let manufacturing, operations,logistics and finance know and integration happens seamlessly.
VEEV has three new businesses, in addition to its multi-channel cloud-based CRM,
Veeva Vault - Content Management
Veeva Network - Master Data Management
Veeva OpenData - Customer Data
Management says above three would bring in 35% revenue this year, let see what happen on Aug 24.
So VEEV is attempting to address all the info and comms needs of the life science industry.
May not be able to grow 10x from here but it is a very well managed company that feel a bit overvalued now. Worthwhile adding when Mr Market is on diarrhea.
I think there will eventually be consolidation in the enterprise software market. It’s a pain to run different applications for each business function and integrate all the data on the back end. I was a part of trying to let each functional area pick best of breed then pipe all the data into SAP. It’s never ending. Every time a new version is released you have to do end-to-end testing. You end up with so much code mapping data and customizing SAP that it’s a nightmare. I was a “rest and vest” for a year, because my part of the project was the only part that worked. My boss who was based in Texas literally told me to stop coming into the office. Just work from home and answer any questions I received. When there’s a testing cycle, make sure I’m on all the calls to address any issues.
I do think looking at TAM is important. It also matches my point of being a product vs. a company. Most products don’t have a big enough TAM to produce a 10x winner. The company needs to develop more products beyond the initial winner. Most companies fail to do it.
NOW seems to have the expansion mindset. Their original product was a cloud-based IT ticket tracking system. Now they have a bunch of products.
I think this brings up another important question. Is it better to focus on B2B companies or consumer companies? Businesses tend to have long decision-making cycles. They are also risk adverse against switching technology. There’s the old saying, “No CIO ever got fired for buying Intel and Cisco equipment.” Consumers are far more fickle. You can rapidly gain market share, but if you misstep you can rapidly lose it too.
But B2B spend is much higher compared to a consumer so it’s not that simple.
AWS is a great example for rapid growing B2B offering. If the product is a rockstar you can hit a homer
No, consumer spending is ~70% of economic activity. It’s where all the money is.
NTNX is not on the shortlisted list?
Somehow I don’t think Mr Market is on diarrhea. Just a reaction to over-eating.
It wasn’t on that list. I’ve actually been watching it for longer.
Small cap ($2B to $10B)
Jil, do you own any small cap?
Notice SHOP and TWLO have business relationship with AMZN and,
NTNX has business relationship with GOOG.
Edit: Updated for Jil and wuqijun. Didn’t include CCP and OHI as I classified them as dividend stocks.
NTNX is intriguing. Considering whether to replace CRUS with NTNX. I don’t have a good feeling about CRUS’s CEO. Is Dheeraj any good? Like ambitious, visionary and good at execution?
CRUS founded in 1981, CEO Jason P. Rhode.
IRBT founded in 1990, CEO Colin M. Angle.
SPLK founded in 2003, CEO Douglas Merritt.
SHOP founded in 2004, CEO Tobias Lutke.
PANW founded in 2005, CEO Mark D. McLaughlin.
UBNT founded in 2005, CEO Robert Pera.
TWLO founded in 2007, CEO Jeff Lawson.
VEEV founded in 2007, CEO Peter Gassner.
NTNX founded in 2009, CEO Dheeraj Pandey.
Any of the above CEO exhibits some qualities of Steve Jobs, Mark Zuckerberg, Jeff Bezos and Elon Musk?
YELP CEO Jeremy Stoppelman.
Your only small cap?
I think if you’re going small cap, then the founder needs to be running it. What are the odds of a small gap getting a visionary CEO? You can be a director at Apple or Google and make more than most small cap CEOs. I don’t think small caps are going to draw from a very good CEO pool unless it’s the founder running it.
I used to work with one of the higher NTNX engineering execs. If that’s how talented their org is, then they are going to really go places.
Not quantity but quality.
Also, invest in few but invest in bulk.
How much bulk means? $5k, $10k, $20k, $50k or you mean $100k? IMHO, $100k seems a lot for a small cap stock. My max per counter is $50k, and I don’t know which one of the seven should I invest that amount yet. Limiting $5k max per counter at the moment. I have yet to read SEC filing for them yet. So far, have only scanned the web for pundits’ opinion. Have not been following small cap at all until recently… was busy building up the dividend stock portfolio and trading options of mega cap stocks (kind of stop it for the moment). Was making 8x for option trading but get a bit cocky and slack a bit, became 6x in a flash, so liquidate all of them and now focus on trying to find small cap… less real-time monitoring Return is lower but less time required
These are my small CAPS. However, I reduced the holdings between 50 and 100 shares except CCP and OHI.
Bulk means 100k minimum.