Why would it be bad for small cap making profit?
Both UBNT and IRBT require tax charges for tax reform, reducing profit this quarter. In fact, UBNT makes losses this quarter.
Even GOOGL was like that, took 3B on tax charges. What tax charges for tax reform, any link to understand more?
Is the tax charges an artificial loss to pay less tax for Q4 2017 when tax rate is high? Everyone would want to realize all the losses in Q4 2017 so that gains will be reserved for 2018 and loss is for 2017.
I think analysts are smart enough to look past this smart tax manipulation.
Anyone with profits overseas will have that one-time charge then they can bring the money back. I wouldn’t worry about it. Long-term, it’s very good.
SHOP is up huge today with earnings later this week. It makes you wonder who knows what?
Took the opportunity to buy back short puts (similar in spirit to your buy back short calls). Only 2 LEAPS calls to ride SHOP.
Cut VEEV for more SHOP and UBNT. Now pretty equally weighted between NTNX, SHOP, and UBNT for the small cap portion.
You think VEEV is not as promising than those three? Or just make them equal weight?
I think VEEV has the smallest addressable market which gives it the smallest long-term potential. I completely cut VEEV to put the money in the others.
TWLO is interesting. I realized losing Uber was a non-issue for them. It took until yesterday’s earnings announcement for the market to realize it. I was ~6 months early. Now that the market has moved past that it has plenty more upside. I’ll keep my eye on it for an entry point.
Currently, full weightage for VEEV and NTNX. Half weightage for UBNT and SHOP
$90 isn’t 10x. As long as the growth and fundamentals are good, hold it.
Your chart jinxed UBNT!!!
Btw, MOMO is finally coming back to life. Thoughts?
MOMO looks good, recovering. It is basically good one to buy. However, read the complete balance sheet, income-expenses last few years before you buy.
CSCO is a regular dividend payer, but big one.
Both UBNT and ANET are profit making companies, I choose them for growth.
If you want 10x in 10 years, small companies are preferable.
You miss my point. Both of them are coincidentally hit by bears.
CSCO people are bullish by its huge cash pile/buyback opportunities. May be funds are dropping small and moving to buyback opportunity shares like CSCO, AAPL.
IMO, ANET drop is temporary, UBNT may likely come out of the mess (my Guess) soon with some penalty or change of financial reporting details (they may still be profitable/attractive). Chances that both may go up and thus fall is creating an opportunities.
Good time to buy SHOP on the dip due to secondary offering.