This comes from my experience with FASB No. 14: “If 10 percent or more of the revenue of an enterprise is derived from sales to any single customer, that fact and the amount of revenue from each such customer shall be disclosed.” This is considered a risk factor in my line of work.
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I missed this TREE boat long time back when my friend tipped when it was around 90 !!! I did not research further at that time !
A good criteria… which means B2C only?
I missed so many boats in my life. Had I landed on a few more of them I could’ve been a world famous billionaire 
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If you compare VEEV and CRUS, VEEV is definite winner.
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VEEV is software company, flexible growth. They can keep on adding new software models depending on customer demand. Adding customer leads to revenue increase over time, both sales and support revenue. At present, company is growing on net income every quarter by quarter. The current drop, after good results, is positive/better to buy at low.
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CRUS is chipset company, less flexible. At present, company is diminishing net income every quarter by quarter, last 3 quarters. If apple moves to another vendor,future is doomed. This company’s existence depended on Apple orders. The current drop in price may become permanent unless you see future net income increases.
If I have money, I would prefer to buy VEEV than CRUS, not even 50:50 compromise !
BTW: I own both AAPL and VEEV, but not CRUS.
As of last week, GILD was good, but spiked suddenly last week. Otherwise, GILD is good for one or two years.
I bought some GILD a few days ago. Up 5% so far.
GILD has touched the bottom during Jun/Jul time frame. Here the old post I remember about GILD
Yes, I was too greedy at the time and wanted to wait for it to go under $60, which of course never happened. Ended up monitoring for a while before finally buying it this past week.
What’s the network effect of Redfin? They got rid of their forum not long ago.
Network effect means the more people use a product, the better it becomes, which in turn attracts more users.
For Redfin, the effect is only budding and far from fully formed. Their “Hot Home” feature can be one. The more buyers use Redfin to search homes, the more intelligence they gather. So they can tell buyers which homes are hot. If I were a buyer I would check Redfin to see if a house is hot or not… and there goes the cycle.
Redfin would need to add more to this flywheel.
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Not necessarily. It can be all sorts of marketplaces, and some are not even marketplaces.
Marketplaces:
B2B: The original Alibaba, connecting Chinese manufacturers with Western importers.
B2C: Amazon 3rd party sellers, eBay, Taobao
C2C: Facebook, WeChat, Instagram
The best example of non-marketplace companies that have strong network effect is Google. The more people use Google to search, the better its algorithm becomes, and so more people search on it. In the PC days Windows has extremely strong network effect. Third party devs have to write on Windows because that’s where the users are, so users use Windows because that’s where the apps are.
This very good article argues self-driving cars will become another network effect. We don’t know yet how strong it will be.
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Jil,
Any news why IRBT is roaring recently?
Other than a MF article, 3 reasons iRBT stock could sweep in huge returns, I see no news. Notice that MF article seems to have an short-term effect on stocks.
Meanwhile, VEEV is the only red in the small cap portfolio which is still gaining of course despite bad performance of VEEV.
IRBT & VEEV: After debt extension sign off -last Thursday/Friday- by congress, many stocks are going up. These are very normal UPs and Downs (Technical Analysis), Long term holding perspective, we should not have any concerns.
Just watched going down 14% today. I do not know the answer, but something /some event happened to IRBT.
Their CFO spoke at a conference today. I see talk of a new competitor, but it doesn’t say who.
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Shark entered the robotic vacuum space and JP Morgan issued a cautious note on IRBT.
http://thefly.com/landingPageNews.php?id=2608839&headline=IRBT
Shark products are lower priced.
Jil,
Sell on news, was rumors for a long time. Do you think SharkNinja will eat iRobot alive?
Spruce has been bearish of IRBT for a long time. In Jun, Spruce causes IRBT to slide to $79.40 from $104.61. The difference now is that 100-day SMA held, now IRBT broke below 100-day SMA, next stop will be 200-day SMA around of course $78-$80 
As of today, small cap stock portfolio underperforms F10 badly, has been underperforming since Aug 28.
So far, the way to go appears to be F10 
BAGB, now you know why I start small… Aug-Sep are usually bad months to buy… look at stock charts of your favorite stocks… fundamentalists would tell you is about fundamentals… correct but what are the fundamentals to cause stocks to almost always peak in Aug and has a soft Sep?
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That’s when most traders take vacation and volume is usually very light. There’s little buying to cause stocks to go up, and they can go down fast on bad news.