I want to thank anirban for having turned me on to EPAM a couple of months ago. Since I bought it then, it has gone straight up from about $46 to $61.70 in two months (34%) and then yesterday it went up $4.40 more to $66.10 (up 44% in two months). What a great recommendation!
Saul
5 Likes
Saul,
I looked at EPAM some time ago - I guess when you first mentioned it. I wasn’t terribly impressed. Maybe I’m jaded after 30 years and some burn out in this field. Anyway, I passed at the time.
You have EPAM listed as one of your small positions, between 2% and 3%. Do you plan to just let it grow on it’s own or do you plan on selling some part of one of your larger positions so that you can increase your holdings in EPAM?
You have EPAM listed as one of your small positions, between 2% and 3%. Do you plan to just let it grow on it’s own or do you plan on selling some part of one of your larger positions so that you can increase your holdings in EPAM?
Hi Brittlerock, I like EPAM and it’s now up to about 3.5% of my portfolio. But everyone has their own taste in stocks. My feelings aren’t hurt if you don’t like it.
Saul
Anirban,
My starter position in EPAM, like Saul’s has shot up since you first recommended it. Many thanks.
Yesterday, according to IBD, EPAM hit new highs breaking out of a base. EPAM has the highest possible IDB rating of 99, meaning its shares outperform 99% of all stocks on the market as measured by fundamental and technical factors.
Jim
1 Like
Saul,
Maybe I’m inconsiderate, but actually I didn’t think about your feelings one way or the other 
As for my failure to buy the stock at a lower price than it is now, I’ll just chalk that up to a teachable moment. Still not confident I’ve learned the lesson all that well. I’ve mentioned before that my investment decisions are largely based on how I evaluate the growth opportunity of the underlying business. This is always based on extremely limited and biased information. Virtually everyone who is an information provider in the investment game has an agenda.
The idea of GAAP financial reporting is to sort of level the playing field and remove some of the biases - but as you’ve pointed out more than once, GAAP is fraught with it’s own hazards. But non-GAAP is whatever the reporting entity decides, so here we go with agenda driven biases . . .
But actually, I was interested in your plan for EPAM, not the size of your investment. You said it’s now up to 3.5% of your portfolio, but I still don’t know if that’s strictly do to growth of the position based on the increase in stock price or if you purchased more - but maybe you didn’t want to answer the question directly so you didn’t. That’s OK, I think you’re very generous and open so if there are some things you prefer to leave unsaid, I’m fine with that.
Yet, I remain curious to know how the run up in stock price might influence your investment decision. If you care to share, I’d be grateful.
1 Like
Guys,
Thanks for the kind words. My friend Vish pointed this one to me and it via Hidden Gems, which as I have said many times is one of my favorite spots for finding new ideas.
I really like EPAM. Eastern Europe has some of the world’s best IT talent. It’s cost efficient. And EPAM has a committed CEO. I am watching this closely but it looks like one can hold this for a long time and enjoy steady compounding. It could still get bought out by a bigger fish but that wouldnt really be a good outcome for us shareholders.
Anirban.
1 Like
But actually, I was interested in your plan for EPAM, not the size of your investment. You said it’s now up to 3.5% of your portfolio, but I still don’t know if that’s strictly do to growth of the position based on the increase in stock price or if you purchased more -
Hi Brittlerock,
It’s actually both. The price has risen and i’ve bought more, even added a little yesterday. I’m reluctant to let it get too big because of country risk, with a lot of employees in Eastern Europe. However, with the $5 rise in a day, I suspect that people closer to the region than me feel some relief about it. I had heard that the ruble has come back a little, and there seems to be less risk of outright war, but that is a very unscientific evaluation. I think it’s a very good company at a not unreasonable price even now.
Saul
1 Like
Thanks Saul,
I apologize for the typo, I need to due a better job proofing.
And thanks for reminding me of the other reason I was put off this investment. Though it appears that they have programming staff spread out all over the place, it’s not all concentrated in a potential war zone - just the same, it can’t be good for business to have a fair proportion of your professional staff worried about whether or not they are going to bombed out later in the day.
1 Like
Anirban,
I don’t own or follow EPAM but just read their last earnings call transcript. Really nothing mentioned in the call about what their plans are for that growing pile of cash they’ve been accumulating, other than perhaps a few small acquisitions here and there. Have you picked up anything different?
Thanks,
Ears
1 Like
Nothing in particular. These guys seem to opportunistically buy smaller companies. Also, they seem to be trying to grow their headcount and geographic presence. I don’t really have any insights on their plans for the cash.
The EPAM conference calls have been pretty boring. Lots of questions from analysts about models for the next quarter or at best the year but really nothing about the competitive landscape and market opportunity.
Anirban.
2 Likes