ANET: new product

https://finance.yahoo.com/news/arista-eos-advances-cloud-gra…

This PR was released 2 days ago. Seems to me that lately people on this board are too focused on useless posts that have little bearing on the actual stocks that they own. When you have a concentrated portfolio, it’s pretty essential to keep on top of what’s happening with the companies. Saul is correct in trying to refocus people’s effect on discussions that pertain to the investments!

Here are the main points of this latest ANET PR:

Arista EOS Advances Cloud-Grade Routing

Arista Networks (ANET) today announced continued expansion in cloud-grade routing with the latest Arista EOS ® (Extensible Operating System) and CloudVision ® software. Arista EOS version 4.20 delivers new routing and management software capabilities, helping customers evolve to modern, software-driven routing principles.

Arista is driving down operational and capital costs with modern routing and cloud automation, enabling architectural transformations across cloud, content delivery, Internet exchange and service provider network function virtualization (NFV) routing use-cases, including next-generation cable architectures…

ANET keeps innovating. They keep making routing and switching more efficient and easy to control…using SW rather than HW. No wonder CSCO can’t keep up.

Chris

29 Likes

I boosted my Arista Networks (ticker: ANET) position to the #3 spot in my portfolio earlier this week, using proceeds from selling out my full remaining position in Live Nation (ticker: LYV ; doubtful that the winter quarters will be great for Live Nation, as there is fairly substantial seasonality).

As of the end of the day yesterday, my top-7 position allocations (71.4% total):

NVDA 26.08%
AAPL 10.46%
ANET 9.50%
MELI 8.42%
UBNT 6.64%
SHOP 5.55%
SQ 4.78%

I will be surprised if my Arista position doesn’t pass up my Apple position within the next two months…and keep going from there.

2 Likes

“I boosted my Arista Networks (ticker: ANET) position to the #3 spot in my portfolio earlier this week, using proceeds from selling out my full remaining position in Live Nation (ticker: LYV ; doubtful that the winter quarters will be great for Live Nation, as there is fairly substantial seasonality).”

I also used this pullback to rejigger my positions a little. Got rid of TWTR and put the money into NTNX and BABA. BABA is up $13 from my buy and NTNX is up $2. Money definately put to better use. A very good tactic of Saul’s

Rob

2 Likes
I used the recent pullback in ANET to buy a bit more of it, boosting it to my second highest position.
My current top five:

SHOP 10.6%
ANET  8.1%
SQ    7.6%
NVDA  6.7%
AAPL  6.5%

I also sold my UBNT position, which I've done a few times over the past year.  
It was only 4% of my holdings and was my lowest confidence position.   
I keep vacillating on my confidence in the company, and finally on that basis, 
decided to cut it loose.  It gives me a little cash for future pullbacks in 
my top five.  Or maybe NTNX, currently position number eight at 6%.

Happy weekend, everyone!

Vivienne
5 Likes

I also sold my UBNT position, which I’ve done a few times over the past year.
It was only 4% of my holdings and was my lowest confidence position.
I keep vacillating on my confidence in the company, and finally on that basis,
decided to cut it loose. It gives me a little cash for future pullbacks in
my top five. – Vivienne

You put your finger on something I discovered is true for me too:

If my confidence in a company is weak, I have a lot of difficulty holding it when the share price drops or if the company stumbles a bit.

There are companies I have bought because someone I respect believes in it. I find that often isn’t enough reason and I sell as I grow uncertain.

But if I understand the company and believe it has a strong future… well, that’s when my allocations get pretty high. I haven’t updated my portfolio allocations in a while, but I believe my #1 holding is ANET… and I have somewhere around a 20% position in it. (And for those who may not know, I’m a retiree.) It really looks like a no-brainer sort of company to hold and big returns are easy to see coming.

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.

8 Likes

If my confidence in a company is weak, I have a lot of difficulty holding it when the share price drops or if the company stumbles a bit.
There are companies I have bought because someone I respect believes in it. I find that often isn’t enough reason and I sell as I grow uncertain. Rob

Exactly, Rob. I think that is one of the most important lessons I have learned over the years. The earlier part of that education was holding onto companies far too long thinking things would turn around and not sure why I was feeling uneasy. My behavior now: if I am feeling uneasy and run through my reasons for owning a company and the feelings persist, I sell and deploy the money into a company where those nebulous feelings don’t exist.

My two years on this board brought that lesson into focus for me. Primarily based on watching Saul’s moves and reading his explanations carefully. I am grateful for the feeling that I have stepped up a large notch in my investing acumen having learned that lesson.

Vivienne

23 Likes

Rob
Which option positions have u gotten into on anet?

I have owned ANET since June 2015, so its one of my longest held stocks. Cognex purchased 7/13/13 is the only one I have held longer. ANET is up 150% since I first bought it, and its my second biggest holding at 12.9% of my portfolio. My 3 highest convictions stocks are Ntnx, anet and nvda. I added to NTNX this week by selling some SQ. I like SQ, I just don’t see the long term TAM for them that I see with my top 3.

2 Likes

Wow, 26% in Nvidea! That takes guts. Anything over 15% with a given company makes me uncomfortable. I guess I’m saying by principle I can’t muster more than 15% confidence level in any single company. I’ve had a couple of issues that grew to around 20% (SHOP, SQ, ANET close to 20%). I loved all three, but decided to trim them back and put the money to work elsewhere.

Wow, 26% in Nvidea! That takes guts. Anything over 15% with a given company makes me uncomfortable. I guess I’m saying by principle I can’t muster more than 15% confidence level in any single company. I’ve had a couple of issues that grew to around 20% (SHOP, SQ, ANET close to 20%). I loved all three, but decided to trim them back and put the money to work elsewhere.

It has grown to that size due to being a >1,000% gain since late 2014. I did trim it some earlier this year, but being in a taxable account, I haven’t trimmed it more. Fortunately, my NVidia position is only a bit more than 5% of my total net worth, so I didn’t have too much heart burn with the recent fall from ~$217/share to ~$190.

Rob
Which option positions have u gotten into on anet? – Rizzz

That’s all in my profile, Rizzz. :slight_smile:

I’ve been adding ANET calls from time to time at different strikes and with different quantities of calls. Didn’t add during the most recent dip. I was wanting to preserve my cash at the moment, although I did buy some STMP calls during a recent “dip after a dip” (upon news that the CEO had sold a bunch of shares (option exercise)). Note: I’m the Coverage Fool for STMP.

But, here’s a more complete post I made this afternoon on my thinking on various companies…and what changes I plan to make… over on the SA Options board: http://discussion.fool.com/1081/my-favorite-companies-for-more–… You might find that post to be more informative. :slight_smile:

Rob
RB Home Fool
Coverage Fool: HY, MTH, STMP
He is no fool who gives what he cannot keep to gain what he cannot lose.

1 Like

My 3 highest convictions stocks are Ntnx, anet and nvda. – Winlockdon

Oh man…

I’ve seen a ton of post on NTNX here on this board. I guess I better scan through the threads and figure out if they interest me enough to build a position there. I’ve been ignoring it to date. “Ignoring” didn’t work out so great for me on NVDA… didn’t establish a position there until $80. Have been doing well anyway, but I’m always looking to improve. :slight_smile:

Rob
He is no fool who gives what he cannot keep to gain what he cannot lose.

1 Like

I do not know how much the router product will sell in gross revenues. The product itself is 1/10th the price of an equivalent router sold by Cisco. I do not think, at least at this point,that it replacement for any routers that Juniper sells as Juniper only sells the high core routers. So no Cisco can not compete here without destroying their business.

As with much of tech, this router functionality will probably improve over time and perhaps even replace high end core routing. For now it is doing just fine.

If ANET continues stealing marketshare like this and continues growing, at this point ANET is like owning a gold mine. Every year it will be printing more cash. Year after year.

It is worth mentioning however that ANET’s margins may decline a bit this year thus somewhat lowering their EPS growth rate. We shall see.

Tinker

7 Likes

I’ve seen a ton of posts on NTNX here on this board. I guess I better scan through the threads and figure out if they interest me enough to build a position there. I’ve been ignoring it to date. “Ignoring” didn’t work out so great for me on NVDA.

Hi Rob
FWIW, Nutanix is one of my high conviction stocks too.
Saul

1 Like

So I should just put a bunch of bucks into NVDA, NTNX, ANET, TLND, and LGIH, to name a few of the main ones here. I feel a little silly not holding any of these, though I’ve gotten some very good ideas here. I’m still holding SWKS, for instance. And I have SHOP.

I’m less averse to turnaround situations, and more inclined to have holdings in more sectors, but I need to move some funds to some of the best ideas here.

1 Like

using SW rather than HW. No wonder CSCO can’t keep up.
I have spent way too many years dealing with Cisco. First, they seem to want to acquire more than innovate and they tend to “ruin” the products they buy (Tandberg, SourceFire, etc). These days they understand that big profit margins are in software and are acquiring in that field. Despite the law suit against Arista, I would not be surprised to see them buy the enemy. Nor would I be surprised to see them buy NTNX. (Though they also claim to be mostfocused on Security these days)

2 Likes