UBNT is filling a gap. It filled the first one. I don’t like gap fills.
The rest all have near-term resistance at prior high. I prefer to wait for prior high to be taken out. It’s too easy to fail before then. You could play it conservative. Buy calls at the recent low and sell calls at the high. It’d definitely be cheaper.
I also like the SPY to be above the 50-day. Once it hits that I’ll look at stocks hitting their 13-week high for ideas and to see what’s leading the market higher.
In some cases, breaking new heights don’t lead to ensuing long rally, can be quite short which I thought would be the case in current environment. I know previously it did.
Its platform has been the go-to choice for general-purpose website construction, while rival Shopify is better set up for dedicated online retail platforms.
" We are looking for high unit volume growth. Usually there is a large, growing, fragmented market. We also look for pricing power, or at least not significant pricing pressure. That’s where innovation comes in."
Revenue growth and pricing power can be seen through high gross margin. That’s how I start my screen too.
“At the initial point of investing, we look for companies with durable business models but operating revenue of less than $500 million. The sweet spot is probably $100 million to $200 million. We look for companies to double revenue within three to five years.”
That’s quite small. Many companies that small aren’t public.
“I generally favor companies that have founders as CEOs with substantial stakes in the companies.”
That was one of my next filters, since it’s hard to get visionary leadership at a small company unless it’s the founder.
“Our companies have very strong balance sheets and high cash-flow-generating abilities.”
She doesn’t confused profits with cash flow. That’s key.
“Owning a relatively small number of companies enables us to become experts on those companies. That leads to high conviction, bigger position sizes and potentially more alpha generation.”
That’s rare for a fund. They usually diversify a ton.
“Veeva Systems VEEV, -0.26% was the fund’s top holding as of Jan. 31.”
Interesting.
This article lays our a bull case for NetApp. It’s exactly what NTNX software does.
But the fund’s 5 year average return is only 15%? It’s not bad per se but not exactly on a 10x trajectory? I wish they gave us the compound rate instead of the average.
Commuter benefits. I can name at least two others just like them (Navia, Discovery, etc.). I don’t think the company is doing too great. They are based in San Mateo if I recall correctly.