Discounts! (esp SMAR)

Earlier today a poster asked if the party is over for now. I see it differently. Yes, it does appear that the market is “correcting” on some of our companies which have recently reported earnings. I’d define “correcting” as, letting the air out of the balloon, meaning that you no longer have to pay quite as high a premium for some of these companies. That’s it. It doesn’t say anything about what will happen next. Maybe more air will be let out. Or maybe the party will resume tomorrow. We just don’t know.

What we do know, as I said, is that several companies are available at less of a premium than they were in the last several months. I’m not saying anything is “cheap,” but if you’ve been waiting to get in or add, now might be the time! Of course here on Saul’s board it’s the company performance that matters, so if you have concerns there, you should express them. Personally I agree with the posts we saw here on the board: SMAR and MDB killed it. I especially thought Smartsheet got harshly treated by the market, as it had already surrendered several percent from its highs near $55. Seems unreasonable that it’s now off those highs by 25%! You can definitely say it was overpriced and now it’s accurately priced (maybe it was priced hoping for accelerating revenue, but now it’s priced based on , but the fact remains that this is a $4.7 billion company that absolutely has the potential to triple or quadruple in the next two or three years!

I’ve added to all of these in the last few days. Not only have the share prices dropped, but the TTM revenue is up, so the PS ratios look a lot more attractive than they did just one week ago!

Stock     Sep6 PS        Aug31 PS    Revenue Growth July Quarter
SMAR        20.7           26.0                53%             
MDB         22.9           27.2                67%
CRWD        44.2           54.5                94%

As far as I’ve seen, no one has posted a review on the quarter Crowdstrike just reported. Who wants to lead the way?

Happy discount shopping!