Hi everyone,
This is my second portfolio update. Below is a link to my first:
https://discussion.fool.com/settingdtone-feb-port-update-3414795…
Mo. Returns S&P 500 Port vs. S&P
Jan 19.47% 8.74% 10.73%
Feb 13.77% 2.97% 10.80%
Mar 1.89% 1.26% 0.63%
YTD 35.13% 12.97% 22.16%
Portfolio Allocations
Ticker % port
TTD 21.65%
KMI 12.37%
SHOP 12.20%
AYX 7.64%
TWLO 7.29%
SQ 5.46%
OKTA 5.24%
MELI 4.85%
ABMD 4.71%
Cash** 4.69%
MTCH 3.30%
STNE 2.85%
GH 2.73%
ESTC 2.57%
NVTA 2.44%
March buys:
ABMD
OKTA
ESTC
AYX
TWLO
STNE
March sells:
AMZN
TRXC
JD
NTNX
Why I bought what I bought:
ABMD: Y-O-Y revenue growth for the last 4 quarters were 40, 36, 37, and 30. Net margin for those same quarters were 19, 26, 28, and 30. The stock has sold off considerably and I thought it was a great time to add to a company that I plan on holding for a long time.
OKTA: Y-O-Y revenue growth for the last 4 quarters were 61, 58, 58, and 50. They guided for FY revenue growth of 34%. I calculate their current P/S ratio at ~23 (9.28 mkt cap/.399 TTM) and calculate their forward P/S ratio at ~17 (9.28 mkt cap/.535 TTM). I do not believe they only grow FY revenue at 34%, especially considering they saw 50% growth in customers with over $100,000 annual recurring revenue.
AYX and TWLO: These two have been discussed a great deal on this board, I added this month to up my allocations in both.
ESTC: I’m not savvy enough to adequately explain what they do, here is a 110 post thread from the NPI board that explains ESTC in great detail: https://discussion.fool.com/elastic-compared-to-mongo-34157530.a….
I bought ESTC without a great understanding because of the following: last quarter, revenue grew 70%, deferred revenue of $138 million grew 73%, subscription revenue was ~91% of total revenue, and they maintained at net expansion rate of 130% (for 9th consecutive Q). Due to my lack of understanding the business, I kept my allocation small. I plan to go through that thread above in its entirety.
STNE: GrowthMonkey has been all over this one. I remember seeing GM post about STNE a few months ago and for some reason didn’t buy it until the middle of March. Some things I like: their take rate increased from 1.58% to 1.88% y-o-y, subscription services and equip. rental rev. grew 138% y-o-y,and cost as a percentage of revenue fell to 44.5% from 68.5% the prior year. I’ll be looking to add to this name over time.
Looking ahead
I like where my portfolio is at (easy to say at this point in time), I trimmed my cash position, and got rid of some names I have little interest in. KMI is still a huge position, and I do plan on selling it off in chunks to add to higher growth companies… sometimes I move pretty slow on doing such a thing. The good thing about doing this write up is that it forces me to be honest and take action if I haven’t done what I said I would do.
There has been a lot of talk about Zoom lately… I plan on reading through their S1 and will post my thoughts regarding what I think is interesting or noteworthy.
Thanks to everyone who contributes to this board, it has challenged my thinking and made me a better investor!
-Dan