Saw this article from TMFCochrane about a small SAAS company with a pretty big market opportunity that I thought was very interesting:
https://www.fool.com/investing/2018/12/22/the-best-fintech-s…
TJ
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Hi TJ,
Might be an interesting company to keep an eye on. However, just giving them a very brief looksy I see revenue growth has slowed from the 40%'s in 2017 to the low 30%'s in 2018. It seems to be trading pretty richly (10x PS) for a company who’s revenue is slowing a bit. Used to be not long ago we would get hyper excited for a company growing revenue above 30%. But compared to most of the stocks owned here, I would rather be invested in companies who’s revenues are growing 40%, 50%, 60%, even 70% and in some cases, accelerating revenue! (AYX, TWLO, ZS, OKTA, ESTC, etc etc).
Best,
Matt
6 Likes
It was a Saul holding for a while (the attractions were the potential TAM and the distribution partnerships in consulting) but Saul came out of it, I think because of the slowing growth record.
A
Here’a an opportunity to recognize another example among many, demonstrating that Saul’s investing acumen and instincts are FOR REAL and AWESOME!
Back on 7/27/2017, Saul wrote and posted an in-depth evaluation of BackLine (BL) and took a new position in this Fintech (Financial Technology) company.
BlackLine (BL) - an evaluation
https://discussion.fool.com/blackline-bl-an-evaluation-32791400…
Weeks later, Saul bailed out, writing in his August 2017 portfolio summary:
https://discussion.fool.com/my-portfolio-at-the-end-of-august-20…
BlackLine was a new position I took at the end of July. I wrote a long evaluation of it, which I won’t repeat. I liked the company a lot. I was wrong. They reported lackluster results, problems with customer satisfaction, increased competition, lengthening sales cycle, etc, etc. The price sold off and I took my lumps and got out.
Back then Saul also invested in another Fintech company, Square (SQ) (initially in Jan 17, out in Feb 17 and re-entered in Mar 17 given upbeat reporting by Bert Hochfeld ), and reported in his August 2017 portfolio summary:
Square
I bought my position in March at an average price of about $17.50, and added to my position in April, and added more in May at about $19.75, on the way up. I hadn’t bought or sold any since, but this month I added a little at $25.50.
Saul’s smart and decisive moves regarding BL and SQ paid off big time as shown in the chart at the following website:
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?..
• SQ realized explosive stock price gains and growth, reaching a high of $101.15/share on October 1, 2018 and, thereafter, experienced a significant pullback during which Saul reduced his SQ holdings.
• In the chart, BL basically flat lined.
Boundless thanks Saul for sharing your incredible investing journey and providing and guiding this FREE board.
Regards,
Ray
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